Recession fears drive employees to seek promotions within current employers
With the rise of economic uncertainty, employees are seeking promotions within their current companies instead of seeking new opportunities elsewhere, according to a recent survey by HR technology supplier Elmo Software.
The research found that over 80% of workers were concerned about an economic downturn, causing one-third to remain with their current employer, 16% to seek a new job within their company, and 20% to stay in their job regardless of the recession. Elmo Software CEO Danny Lessem emphasizes the importance for businesses to be aware of changing employee sentiment, stating that employees are being "loud and clear about what they want and need."
As the number of workers seeking pay rises and promotions increased from 36% in 2021 to 44% in the current climate, Lessem highlights the significance of regular performance and development conversations and ensuring succession plans are in place to avoid overlooking internal talent. The research also revealed differences in recession concerns between generations, with Gen Xers and Baby Boomers being the most concerned and the most likely to remain in their jobs due to economic uncertainty.
The ABS retail sales statistics showed a decline of 0.2% in the December quarter, marking the first drop since September 2021, attributed to the rising cost of living concerns. A recent CPA Australia poll found that 29% of respondents felt uncertain about their job security due to the current economic conditions. CPA Australia senior manager of business policy, Gavan Ord, noted that it was not surprising for workers to feel nervous about their future employment in light of the current challenges faced by businesses.
Lessem advised organizations to be aware of their employees' feelings towards the potential of a recession and to tailor their approach to flexible working, salary, and development opportunities based on individual employee priorities. He concluded by saying, "A one-size-fits-all approach is not the answer."
