U.S. workers prioritize security over job hopping amidst economic uncertainty

Amidst a rise in the cost-of-living, high inflation and global political unrest, a new study by WTW, a global advisory, broking and solutions company found that U.S. workers are turning to their employers for a sense of security.

The study found that a majority of employees – 72% – are choosing to stay with their employer, bringing an end to a period of high job turnover and adverse attraction and retention challenges for employers. 

Throughout 2022 over half of U.S. employees were looking to transition to new roles, however, now the majority plan to stay with their current employers. A quarter of employees said they were open to new job offers in 2022, but only 11% say they would welcome them now, according to the study. 

Similar to 2022, employees said they are encouraged to stay with their current company based on factors including pay, job security, health benefits and flexible work arrangements. Nearly half of employees said pay was a motivating factor to stay in their current role. 

Despite that, the study found that 56% of employees said they would be open to considering another job offer if it meant receiving better pay. Employees who were willing to transition roles for higher pay said they would need at least a 10% raise to make the move. 

“As employees search for a greater sense of stability, employers are ramping up their core benefits,” said Steve Nyce, senior economist and global leader for the Research and Innovation Center, WTW. “Focus on pay has strengthened, and benefits are meeting the needs of many employees, not just some.” 

While pay is still the driving force behind attraction and retention, the study revealed that benefits are almost equally as important. Nearly half of employees said they chose their current employer based on benefits packages, and over half of employees have stayed at their company for the same reason. Forty percent of employees said they would leave their current company for better benefits elsewhere and no change in salary. 

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“The war for talent is no longer just about pay; benefits matter, and the ability to choose those benefits is important for adapting to employees’ changing needs,” said Cecile Chang, global growth leader, Health & Benefits, WTW. “Employers should invest in their employees’ long-term wellbeing and offer a sense of security through the benefit package. While they can’t control the world outside of work, they can support their employees through an inclusive and tailored benefits process.”