Employee Development: A Potential Solution
When employees are job hugging—and not staying because they like their jobs—it's likely that they don’t see a future path at their organization, Chernoff says. Employee development that aligns with real career tracks gives employees a tangible goal to chase, which promotes greater engagement and improved performance in their work.
"Employee development is one of the most effective levers that HR can use to combat disengagement and enhance the employee experience. But development can't just mean training programs. It should aim to equip managers to lead well, encourage employees to take smart risks, and give them ownership of their careers."
Gomez explains that employees want to know that their employers care about them and their contributions to the workplace—and that includes their development and career growth. For Tasty Restaurant Group, this means creating HR systems that require participation, facilitate discussions surrounding development, and include a development plan for every salaried manager within the company.
When workers see their organization is investing in their growth, they're more likely to stay engaged, rather than just employed, Coles says. Job hugging stems from a sense of stagnation, where employees feel secure in their jobs, but lack clarity on how they can grow. Employers, she says, should take this as an opportunity to focus on growth strategies to keep workers engaged and productive.
"With evolving skill demands, employees are feeling the pressure to uplevel or risk becoming less competitive in the job market," says Cheryl Yuran, CHRO at Absorb. "As almost three quarters of workers say they aren't reaching their full potential due to a lack of development opportunities, the desire to learn without the proper support from their organization is fueling disengagement."
Conversely, companies that prioritize skill development report a 30% to 50% higher engagement rate. Investing in employee growth helps establish a culture of support and continuous learning within the organization, showing workers that the company cares about them beyond their productivity, Yuran says.
"Giving managers the opportunity to be more hands-on with coaching and teaching will also ward off disengagement, and not just because junior employees will have a familiar face handling their trainings," Chernoff adds. "Managers want to be coaches. As Legion's data shows, 64% of managers say they'd spend time gained from AI automation on coaching their teams. Everyone is eager to adopt AI, but when it comes to employee development, one of its best use cases is in automating tedious work, so managers have the time and energy to build a stronger, more engaged workforce."
When the Tide Shifts
When the market opens up again, companies that have demonstrated that they value their employees, work proactively to provide growth opportunities for them, and invest in the employee experience will have better retention and will be able to attract top talent for their organization, Christie says.
Companies will likely see two outcomes when the job hugging trend shifts, Yuran says. The organizations who used this time to invest in upskilling their workforce will see higher employee loyalty and be better equipped to handle evolving business needs. Those who don’t will see a large portion of their workforce leave for other opportunities.
"As the market changes, organizations that have placed a clear and consistent focus on development will have an advantage in hiring and boosting overall employee sentiment," Coles says.
While the job market will continue to ebb and flow, having an engaged and satisfied workforce will always be a priority, Chernoff adds. "The best thing employers can do is be the better opportunity in the first place. Use this time to invest in your so-called 'job huggers' and create a workplace where people can do their jobs confidently and productively," she adds.