Interest money

Quickly switching jobs for more money, companies hoarding talent and suppressing silent dropouts could be the future of work

Over the next few years, new workplace trends are likely to emerge, such as rapid staff turnover, companies trying to retain talent, silent dropouts getting laid off, and a divide between remote and businesses in the office.

The labor market and the economy evolve in phases. It oscillates between booms and recessions, as evidenced by the Great Financial Crisis, the pandemic and the rapid passage of euphoria from 2021 to today. Record inflation, higher interest rates, a reasonable likelihood of a coming recession, and geopolitical issues will force both companies and candidates to change the way they operate.

The need for more money

With inflation, your purchasing power has dropped dramatically, as the cost of goods, from gas to housing, has steadily increased. As inflation and rising commodity prices eat into your wallet, you have two choices: ask your boss for a raise or look for a new job.

Business leaders will be aware of this new mindset. The C-suite can instruct its HR team and hiring managers to get very choosy about who is the right fit for the company, hoard the best “A” players, and weed out the underperformers.

They will also turn away from attrition, allowing second and third tier people to leave. To field the best team, companies will fight aggressively to retain top performers with higher compensation, bonuses, stock options and promotions.

Quick job change

Although there is a steady stream of layoffs announced by leading companies in almost every industry, there are still around 10 million jobs available. Given the large number of vacancies, workers will move from one company to another to obtain a salary increase. If a white-collar professional earning $100,000 changes jobs, they can receive a base of $120,000 to incentivize them to jump ship and join the new company. When it becomes a practice, the next role will earn him around $150,000.

There is an added benefit to changing jobs. With each move, they meet new people, build their network, learn new skills and technologies, and gain a more complete understanding and knowledge of what is going on in several different companies, which is valuable for future employers.

Hoarding Talent

Management will quickly realize this new trend as some of the best and brightest in the organization move on. To stem the brain drain, leaders will be forced to pay for renowned workers. When submitting a resignation letter, HR will be asked to work with the hiring manager and senior executives to come back immediately with a lucrative counter-offer to keep them from walking out. They will need to increase their base salary, improve bonus level, provide higher level corporate titles and share a path forward within the company. As more people watch this drama unfold, they will also threaten to quit in order to receive a hefty vacation package.

Cut silent dropouts

The revolving door of employees will occur at all levels. Since top players are in high demand, companies will lavish attention and financial reward on them. Quiet quitters, who only do the bare minimum, will be targeted for slaughter.

Since there is a lot of turnover, there will be no need to hold back workers who go around in circles and cyberloaf throughout the day. They will gradually be replaced by more motivated people. It will not be surprising that there is a demarcation between people. Those who work hard and exceed expectations will be highly rewarded, while those who think they are cheating the system by slacking off will be demoted or asked to leave.

The choice between remote and in the office

With apartment and house prices having become exorbitant, the battle between working in the office and working remotely will only intensify. Workers who live in the suburbs and who have to go to the big cities will say that they can no longer afford it. Those who live in cities will cite increases in apartment rentals and house prices and feel squeezed out.

As inflation and prices continually rise, they face increased costs for travel, buying business attire, and paying more for breakfast, lunch, and other necessities. They will tell their bosses that soaring costs are cutting into their lifestyle and demand a remote work option. This will help eliminate some of the daily expenses. The person can move to a lower cost location with lower taxes, better schools, and lower prices for houses and apartments.

While there are always hybrid work styles offered, this might fade over time. Many companies will ultimately choose either in the office or remotely to make things easier for managers. This will become a differentiator for businesses. Employees can decide which work model suits them best and choose a company based on their work options.

For those who choose remote work, there are pitfalls. Middle management micro-managers will deploy spying software to make sure their remote workers are doing their jobs. The lack of confidence can weigh heavily on the worker, because he feels constantly spied on. Due to proximity bias, people who work in the office may attract more attention, raises and promotions because they are seen daily.

The good news is that with a large number of jobs available, the telecommuter won’t have to suffer from a bad boss. They can look for another remote opportunity with empathetic and supportive managers.