- Data covering over 70% of the global economy shows job switching behavior has risen to 2020 levels
- Only 1 in 4 employees currently rate their employer highly across the most important employee value proposition drivers
- Randstad offers four tangible actions to improve your employer brand to support talent attraction and retention
The world's leading talent company, Randstad, has released its latest Randstad Employer Brand Research, revealing an increasing trend in global labor turnover and job switching. The data indicates that 17% of respondents globally switched in the last 6 months of 2023 and 26% intended to change in the first 6 months of 2024.
These findings highlight the ongoing challenges faced by employers in retaining talent amidst rising levels of labor turnover and job switching. In the context of tight global labor markets, the data, derived from a comprehensive survey covering over 172,000 employees globally, underscores the urgent need for improved employer branding strategies to support the attraction and retention of talent.
rising job switching rates
The data indicates that while Gen Z shows the highest inclination to change jobs (35%), Millennials are leading in actual job switches (22% compared to the average of 17%). Geographically, North America has experienced the highest turnover rate (22%), while Latin America shows the highest intention to switch jobs within the next six months (31%).
motivations for job changes
The primary motivations driving employees to seek new employment opportunities include a desire for better work-life balance (36%) and a need for improved compensation in light of the rising cost of living (35%).
Gender disparities in job motivations are also evident, with inadequate compensation being a stronger motivator for females than males. This likely reflects existing pay gaps, with the data showing that 54% of men received at least partial compensation in comparison to 47% of women. Similarly, younger workers report receiving some form of compensation at a higher rate than older ones (70% vs. 54%).
These trends present a risk to talent retention, especially during a period of heightened competition for workers. As companies grapple with the challenges of a tight labor market, the need to align employer branding with workforce preferences becomes crucial.
employer branding as part of the solution
Randstad’s research emphasizes that a strong employer brand can play a crucial role in mitigating the risks of labor turnover. Employer branding helps create a compelling narrative about an organization, highlighting its strengths and values, which are critical in attracting and retaining employees. Key components of an effective employer brand include:
1. enhanced work-life balance
Supporting workers’ need for healthy work-life balance can significantly improve employee satisfaction and retention. This is also reflected in our Workmonitor data, which shows that over half of employees are happy to stay in a role they enjoy even if there is no room for career progression. The research shows that if this driver is not satisfactorily met, work-life balance is the top reason given by respondents for switching roles.
2. non-material benefits
Focusing on non-material benefits such as an inclusive work environment and improved flexibility can also bridge the expectation gap in employer performance. Efforts in this regard can significantly bolster employee satisfaction with minimal financial impact. Women (53%) and older generations (56%) in particular value this driver more than men (44%) and younger employees (46%), which emphasizes the importance of tailor-made talent strategies. A strong signal of progress in achieving this driver is that 73% of employees feel their expectations are met in terms of job security.
3. equity initiatives
The research emphasizes equity as a top driver for employees, particularly among women, Gen Z, and individuals identifying as minorities (31% of respondents). Employers stand to benefit from implementing and prioritizing equity-focused programs to ensure fair opportunities for development.
4. leveraging AI adoption
Nearly one-third of the global workforce is incorporating artificial intelligence (AI) into their daily work practices and 51% believe it will have a positive impact on their job satisfaction. Employers can develop comprehensive AI training programs to engage employees, showcasing the benefits and positive experiences of current AI users who, according to the data, are more optimistic about its impact (71%) compared to non-users (32%). Tailoring AI implementation strategies to address regional disparities can also build optimism about the role of AI.
about Randstad
Randstad is a global talent leader with the vision to be the world’s most equitable and specialized talent company. As a partner for talent and through our four specializations - Operational, Professional, Digital and Enterprise - we provide clients with the high-quality, diverse and agile workforces that they need to succeed in a talent scarce world. We help people secure meaningful roles, develop relevant skills and find purpose and belonging in their workplace. Through the value we create, we are committed to a better and more sustainable future for all.
Headquartered in the Netherlands, Randstad operates in 39 markets and has approximately 40,000 employees. In 2023, we supported 2 million talent to find work and generated a revenue of €25.4 billion. Randstad N.V. is listed on the Euronext Amsterdam. For more information, see www.randstad.com
about the Randstad Employer Brand Research
The Randstad Employer Brand Research (2024) provides invaluable insights for businesses aiming to attract and retain top talent in a highly competitive labor market. By understanding the evolving preferences of the global workforce and implementing targeted employer branding strategies, companies can enhance their talent retention efforts and secure a position as employers of choice.
The Randstad Employer Brand Research is the definitive, most comprehensive global survey on how to become a magnet for talent based on the insights of 172,000 people in 32 countries.