Job-hugging: what can tech leaders do about employees who want to leave but are staying put?

American workers are the least confident they’ve ever been in the job market. Official monthly data released in early September by the US Federal Reserve showed that the perceived probability of finding a new job fell to 44.9% in August. This is the lowest reading since the central bank started surveying job-finding expectations in June 2013.

Faced with uncertainty, workers are staying in their jobs even if they would prefer to hand in their notices tomorrow. This isn’t a new trend, as the job market has always ebbed and flowed, but “a sense of global events as unpredictable and unprecedented, combined with looming AI disruption, is making workers increasingly unsure,” according to Korn Ferry.

As a result, workers are holding on tight to their jobs and the security of their pay packet – or ‘job-hugging’, as the management consulting firm puts it.

Recent data from Randstad Digital backs this up, with almost half of all Gen Z tech workers concerned about the impact of AI on job security.

It’s a reversal of the Great Resignation that occurred in 2021 and 2022 when employee turnover rose sharply as workers quit en masse and were confident about quickly securing new jobs, says Emma Collingwood, chief people officer at real-time payments platform Volt. “We are now beginning to see the opposite happen, largely due to macroeconomic factors,” Collingwood says. “It’s harder to move roles.”

Job-hugging in itself isn’t “inherently problematic”, Collingwood points out. After all, if employees are hopping from job to job instead then this increases hiring and training costs. However, if job-hugging means workers are mentally checked out, as with quiet cracking, then this could hamper productivity.

Gauge engagement levels

The challenge, then, is to keep job-hugging employees engaged. Leaders need to start by understanding how they’re feeling and what might be driving any disengagement. Collingwood suggests conducting pulse surveys to gauge levels of employee fatigue.

One-to-one meetings can also be incredibly helpful as they can allow employees to open up about any concerns they might have. Leaders should use these meetings as a chance to discuss career development goals.

Collingwood explains that ”it’s often a lack of growth opportunities, unclear expectations, or feeling undervalued that’s driving disengagement”. Elaine Laird, head of people and culture at Logitech, echoes this sentiment and argues that regardless of job market conditions, “when opportunities for growth and development in current roles aren’t available, most, if not all, employees will switch off.”

Debbie Mitchell, director at HR consulting firm LACE Partners, agrees and tells ITPro that businesses must do more to provide tangible opportunities within the workplace. “Leaders often make the mistake of treating job-hugging as an employee problem, when in reality it’s often a problem with the organization,” she says. “If your best people are clinging to the safety of a role, it usually means they don’t see clear, supported pathways to grow elsewhere.”

Let employees rise to the challenge

As for practical steps leaders should take, they need to find new ways to “reignite employees’ motivations”, says Laird. This can be done through “engaging them on the potential opportunities, new challenges and different responsibilities or other roles they could be fit for elsewhere in the business.”

She recommends that leaders give their employees stretch assignments. These are tasks that require skills and knowledge beyond their current development and responsibilities. However, they’re a chance for employees to demonstrate to employers that they are capable of rising to a challenge.

Once employees complete stretch assignments successfully, leaders need to give them feedback – and praise where due. Recognition matters and can give employees a sense of belonging, says Ronni Zehavi, CEO and co-founder of HR tech firm HiBob. “Small, timely acknowledgements boost morale and reinforce a sense of belonging far more than annual rewards.”

If employees can see that their input is valued and that their employers trust them to take risks, then they’re more likely to take risks in the future. It’s a virtuous circle that can benefit performance and productivity. Employees may also come to realize that there’s room for them to grow with their current employers. As Mitchell puts it, “job-hugging quickly can quickly turn into career building”.

Turn caution into commitment

There are a number of other steps leaders can take to keep employees engaged. These include training and mentoring to boost skills and internal mobility programmes that promote the movement of employees to take on new roles.

It’s clear that businesses have an opportunity here to improve retention and fill skills gaps at the same time. Tech leaders in particular can look to meet the growing demand for AI skills through internal reskilling and seek to stem potential staff turnover down the line through this targeted training and investment in high-value staff.

Mitchell warns that “chaining” employees to their current roles can make them more of a flight risk. But, “by creating transparent pathways, encouraging lateral and cross-functional moves, and making it clear that ambition is welcome,” leaders can increase the likelihood of employees wanting to stay put.

At the end of the day, even the most loyal of employees will want to leave if they don’t see a future at their current employers, notes Zehavi. “With the right approach, however, leaders can turn caution into commitment and build loyalty that lasts beyond the downturn.”