“Job for Life” mindset – could it make a comeback in 2025?
Anyone who’s seen the data from the recent study by LinkedIn and Microsoft may be wondering whether I’ve mis-typed this headline, but please bear with me. Their survey of 31,000 workers across 31 countries found more people wanting to quit their jobs now than during the Great Resignation - that’s 46% of employees wanting to leave their jobs, six per cent higher than in 2021.
I would address that in a couple of ways. Firstly, LinkedIn is a wonderful platform, but you might argue that a high proportion of its active users are in the market for a job, which may have had a bearing on the numbers. Secondly, the ‘job for life’ mindset is exactly that, a mindset, not representative of any one moment in time. While high numbers might be looking to move now, people may still be out there looking for a company and a role where they can put down some roots. Companies might also be looking at ways to hold onto people for longer.
In any case, we’re not talking about the ‘job for life’ mindset prevalent 40 or 50 years ago, but there are some key factors which might now play into a longer-term commitment.
Economic uncertainty
While strong economic growth was almost taken for granted previously, a relative lack of stability – economic, geopolitical and even medical – may make people more cautious about job security, leading more workers to batten down the hatches and make the best of their situation. If they feel that position is stable and enjoyable, they may be less inclined to switch jobs for a small pay increase.
Counter point: With pay pots under pressure due to NLW and NI hikes, many managers will be having tricky conversations about pay in 2025. Companies will experience more pay compression and may need job levelling as part of a pay structure review. If you are clearly paying under the market rate, people will still move.
A revolution in Flexible Benefits and HR Tech
Employers in the 80s and 90s didn’t have much to offer in terms of benefits, but what they did have – PMI and company cars - was relatively shiny and new. By contrast, we are now experiencing a revolution in the way companies can support and protect their employees.
- Benefits 2.0 – There are now so many strings to a company’s bow: voucher and discount schemes can make workers’ cash stretch further on the high street. Cash plans offer a blue-collar version of PMI covering eye tests, dental, physio and diagnostic tests. Online GPs can save time and hassle. Gym membership and wellness schemes can make them feel healthy, while recognition schemes make them feel valued. EAPs are that last line of defence for financial support.
- Hybrid working - It will be interesting to see how it plays out for companies currently insisting on people returning to the office, because it feels like the ship has sailed on hybrid working. Working remotely enables people to operate globally without physical relocation, which can lead to longer tenures because less feel less tied down.
- Flexibility and work-life balance – there is now greater focus on flexibility creating a better work-life balance as part of the overall package. This spans where we work but also how we work in terms of the shape of the week, and when we work in terms of holiday and parental leave, both of which are undergoing a mini revolution of their own, with companies like Octopus Energy blazing a trail in abandoning the concept of holiday entitlement altogether. How many will follow suit?
- HR Tech – For the first time, we are making it as easy for workers to access, use and value their benefits as it is to make a purchase on Amazon, or watch a movie on Netflix, and that is a massive step forward in retention. New HR apps like HAPI now make all these benefits quick and easy for workers to access in one place, and are radically improving the communication and personalisation around reward, recognition and benefits, further boosting engagement.
Counter point: Word travels fast – if a competitor’s benefit offering or tech platform is more enticing, and they are paying the same, it is only natural that people will be tempted to move.
Investment in career progression
During our recent Pay Trends event we covered the concept of Employee Lifetime Value: the relative return on investment companies get from workers at the various stages of their employment. In the current climate we may start seeing more companies invest in their employees’ skills and progression with a view to getting them up to speed (delivering maximum ROI) quicker, and for longer.
As well as working for the company, this investment also works for the individual. It allows them to forge a career and fosters a sense of loyalty, particularly among younger workers who tend to prioritise work-life balance and purpose-led work over pay. They may not be looking for a ‘job for life,’ but they still value stability and opportunities for growth.
Counter point: Technological changes are constantly reshaping job roles, requiring employers and employees to be adaptable. With AI advancing so rapidly, we may not fully understand many of the roles and skills needed in the next 5-10 years. For companies to match employee appetite for personal and professional development they may need to be more agile than ever.
For help or advice with job levelling, pay structures, benefits or other job retention strategies, please contact Sarah.Lardner@innecto.com
