Americans Kiss Job Hopping Goodbye

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Story by Matt Grossman

The U.S. job market is still solid. But more workers are staying put, because the chance to trade up to a better job is rarer.

Americans quit 39.6 million jobs in 2024, down 11% from the year before and down 22% from a recent peak in 2022, according to Labor Department data published Tuesday. The share of employees who quit their jobs each month has fallen below the prepandemic level, and some economists expect more decreases ahead.

Unemployment remains modest and the economy is still creating jobs. Layoffs are limited. The Labor Department will release its latest monthly jobs report on Friday, and economists expect another month of decent job growth and a steady unemployment rate at 4.1%.

But there are now just 1.1 job openings per unemployed worker, down from a high of 2 in March 2022. For workers who do get laid off or who want a new role, the path to an offer is far more challenging.

“It’s not immediately clear to me what’s going to turn this around,” said Neil Dutta, an economist at research firm Renaissance Macro.

Workers in well-paid office jobs are encountering an especially challenging job market. Companies in tech, law and related industries hired fast a few years ago, and many now have less need for new employees. There are still plenty of jobs in hands-on industries such as healthcare and hospitality.

“The past 18 to 24 months have been just more of a steady malaise” for top-level white-collar jobs, said Michael Distefano, chief executive of Korn Ferry’s professional-search business. He said the office-job market has shown signs of picking up in 2025, but it will depend on whether Trump administration policies encourage business investment, and how the Federal Reserve sets monetary policy.

The Fed’s quest to tame inflation through high interest rates works in part by discouraging too much investment and hiring, because a hot job market can in turn lift wages and raise prices. The Fed paused further rate cuts last week with inflation still modestly above target, and traders are betting that the central bank might not bring rates lower again until June.

As the race for talent has cooled, companies are more focused on controlling salary costs.

Meta plans to cut 5% of its workforce this month. Its finance chief, Susan Li, told analysts last week that while the tech giant is still adding technical talent, it has eased off hiring business staff. RTX, the defense contractor formerly known as Raytheon, is investing in automation “that will continue to drive productivity without the need to add head count,” its CEO, Christopher Calio, said on the company’s earnings call last week.

What happens next depends on how well companies can keep a lid on costs without turning to layoffs—which have stayed at a low level after spiking early in the pandemic.

“This labor market has shown that it can keep cooling for a long time without things breaking,” said Guy Berger, an economist at the Burning Glass Institute, an employment think tank. “Forever? Probably not, but maybe there’s more room for the labor market to cool in a mostly painless way.”

Source: Americans Kiss Job Hopping Goodbye (msn.com)

Why Feedback Can Make Work More Meaningful

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by Rachel Pacheco

 

If you’re like most managers, you probably hate giving constructive feedback to your team. It’s awkward, it’s uncomfortable, and it often doesn’t work. You may question whether it’s worth the trouble to tell an employee that what they’re doing is wrong. Is it worth the risk of a long-drawn out conversation when there are more pressing things to do? Is it worth the risk of hurting a team member’s feelings or opening the door for potential conflict? Perhaps you answer “no” and deprive your employees of the constructive critiques that aid in their development — and that they deeply crave.

For years, I’ve taught feedback in my courses, coached executives on how to give feedback effectively, and run countless feedback workshops. What I’ve found is that managers fully understand most of the reasons why feedback matters. Managers have long been told how feedback is critical to organizational success. They attend training after training to learn how to give effective feedback in order to manage underperformers and ensure that employees are on the right track with their work. Managers also learn that feedback is a necessary ingredient for a company culture built on trust, accountability, and compassion.

But what’s often missing from the conversation about the importance of feedback is the real reason why it matters: Feedback is a critical tool for helping employees find deeper meaning in their day-to-day work.

Employees crave meaning. Once basic job needs are met (e.g., fair salary, safe working conditions), meaning is what employees most desire in their job. This desire is especially important for Gen Z. Nearly 75% of Gen Z workers say that a sense of purpose in their jobs is more important than pay, according to research by the job site, Monster.  And meaning matters: studies show that employees who have more fulfillment and meaning in their day-to-day work have higher productivity, greater retention, and overall greater job satisfaction.

The feedback that you give your team members has a direct impact on day-to-day meaning. Effective feedback can help imbue even the most mundane tasks with a deeper sense of purpose.

Here are three reasons why feedback can create more meaningful work, and how you as a manager can make sure your feedback conversations are designed for maximum meaning. Continue reading →

What Makes a Good Leader? Here’s What I’ve Learned After 20-Plus Years as a CEO

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Story by Jason Hennessey

What makes a good leader?

Ask any entrepreneur, and you’re likely to get different (albeit, pretty similar) answers. You might have heard that a good leader is strong, decisive, confident and honest. Or perhaps a “good” leader to you is optimistic, creative and forward-thinking.

After over 20 years as a CEO, I can tell you, my definition of “leader” has evolved over time. Facing challenges, resolving personnel conflicts, making mistakes and overcoming burnout will do that to you. So, while I don’t claim to have the textbook definition of leadership, I can share what I consider to be the essentials when it comes to being a positive, compassionate leader. And I’ve learned that entrepreneurial leadership crosses every sector of business.

1. Set intentional habits

A leader is someone who is intentional with their habits. Whether you’re part of the “rise and grind” crowd or prefer a more leisurely pace, you’ve given thought to how you manage your day, your health and your business.

As an entrepreneur, my routine is everything — not because I require regimented time blocks, but because, if I didn’t set priorities, what’s important to me would go by the wayside. By setting intentional habits, I know I’ve created time for my physical health, mental health, family and leisure, in addition to the responsibilities of my business.

Without intention, we are at risk of falling victim to bad habits. Distraction and avoidance become our downfall. A great leader knows their priorities, directs energy to the activities likely to have the greatest impact and manages their time, not the other way around. Continue reading →

The Art of Delegation

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by Eliot Gattegno , Athena, and Nadav Klein, INSEAD

 

A framework for developing this critical leadership skill.

Consider this man. He takes daily post-lunch naps and frequently dozes off in a lounge chair after dinner. He spends his afternoons at home rather than at the office, tending to his garden and golfing. He spends months away from work on vacation. He prides himself on avoiding “hustling”. “I’m here because I shirked: [I] did less work,” he reflects.

Many people may look askance at such a guy, but in fact this was how John D. Rockefeller, arguably the wealthiest man in modern history, spent his days. Rockefeller attributed his productivity not to his own hard work, but rather to his ability to delegate; He was able to assign responsibility to people in his organisation so that the work could be scaled as effectively as possible. 

The challenges of delegation

Delegation skills are just as important today, albeit in short supply. A Gallup study found that superior delegation skills of a company’s management corresponded with greater revenue and business growth. However, according to a 2007 survey by the Institute for Corporate Productivity, about half of the companies that responded had concerns about employees’ delegation skills. Yet, only 28 percent offered delegation training. More recently, a 2021 survey found that delegation was rated as the second most important skill behind empathy in mitigating employee burnout, but only 28 percent of participants said they were receiving training in this area.

Among the reasonswhy leaders under-delegate, perhaps the most important one is that there is currently no clear framework for delegation. This lack of structure leads to a superficial view of the practice, where it is merely seen as something that leaders must do more of, somewhat similar to visiting the gym more regularly. While we generally agree that delegation should be practised more frequently in many organisations, the key is in understanding how to delegate, and how much. Just as a workout routine is necessary for gym sessions to be useful, a basic framework is needed for delegation to be effective.  Continue reading →

5 steps to take to get a promotion in 2025

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by Jared Lindzon

 

Americans hoping for a promotion in 2025 should prepare to face stiffer competition.

Economic instability took a bite out of payroll budgets in recent years, and as employers finally find themselves in a position to start dishing out raises and promotions again, they’re expected to have their fair share of worthy candidates to choose from.

According to a recent survey of 2,000 employers by ZipRecruiter, most are anticipating stronger earnings this year, and intend to use some of those funds to increase compensation. Roughly 55% are planning modest pay increases of 1% to 4%, and about a quarter expect to bump up salaries by 5% or more. By comparison, nearly half of employers planned to reduce payroll budgets this time last year.

While that’s good news for employees, the significant swing in employer sentiment means many promotions have been deferred, and more employees are waiting in line for their next career advancement opportunity. At the same time, a weakened economy has resulted in less job-hopping in recent years, meaning there are fewer vacancies to fill.

“We’ve seen overall quit rates drop, and there’s not a lot of turnover within companies, so people are staying in their positions longer, meaning there’s potentially fewer spots available,” says Amy Garefis, ZipRecruiter’s chief people officer. “So, it’s even more important to stand out from a group of people that may be tenured, all vying for the limited promotion positions available.”

Here are a few key steps that employees can take to help their odds of getting one of those coveted promotions in 2025:

1. Don’t be indispensable

Those looking to move up the career ladder this year need to walk the fine line between effective and irreplaceable, says Garefis. Continue reading →