Two years ago, employers and economic development officials were grappling with a “great resignation” as the pandemic reshaped workplaces and workers hopped jobs in search of better opportunities.
The post-pandemic economy has seen a surge in resignations as workers and job seekers used the resurgence in business activity as an opportunity to gain more leverage in negotiations as employers compete across sectors for job openings.
Federal statistics show that more than 50 million Americans are leaving their jobs in 2022, an average of 4.5 million per month, most of whom did so in search of better wages, benefits, or workplace flexibility.
New data suggests that workers who have switched jobs since the pandemic are significantly less satisfied with their new jobs than colleagues who stayed, deteriorating the move into “major regret”.
Overall job satisfaction among job changers dropped by 5.6 percentage points, with key questions being asked about the quality of leadership, communication, interest in the job, coworkers and job security at the new company. “Workers who have left their jobs since the pandemic began are significantly more dissatisfied than those who didn’t leave,” reported the survey by The Conference Board, a business-focused nonprofit that represents more than 1,000 companies around the world.
These findings are part of a survey that shows that overall job satisfaction in the United States has plateaued and that people who are taking part in resignation sprees are often less satisfied with the conditions of their jobs, especially financial benefits such as bonuses, benefits, wages and promotions.
The trend of job-changing is slowing: in 2023, an average of fewer than 4 million Americans quit their jobs in the first 11 months of the year. In 2021-22, records for job resignations were broken for four consecutive months, reaching a peak of 4.5 million in spring 2022. After a record high in 2021, the total number of job resignations fell to 44.5 million in 2023, down from a record high of 50.6 million in 2022.
Part of the increase in resignations is due to natural attrition as baby boomers leave the labor market, a change expected to cause the biggest workforce upheaval in history.
Job-seekers have been concentrated in the leisure, hospitality and retail industries, which generally offer lower pay and benefits. White-collar employees are sticking with their companies; turnover in the finance industry, for example, fell at the start of the pandemic and is now below 2%.
Leadership and cultural issues showed the largest difference in satisfaction between job changers and those who stayed.
“While pay and key benefits are still important, employees are focusing more on a positive workplace culture and experience,” Diana Scott, the organization’s human resources leader, said in announcing the results. “When pay and benefits are competitive, leaders will reap the most benefits by offering great growth opportunities, quality leadership and work-life balance.”
Location flexibility also remains important to Americans, and those who can do some work from home are more satisfied than those who must be in the office full time: Over 65% of hybrid workers are satisfied, while for in-office employees, job satisfaction drops to 60%.
The survey found that many of those who quit did so in search of higher salaries, and that these employees are now reported to be the most dissatisfied, with inflation eating away at their higher salaries.
New hires, including those who have been with the company for less than three years and those who left during the attrition surge, say they plan to look for another job within the next six months. Their biggest complaints are about bonuses, promotions, training, recognition and performance reviews.
But the study also discovered an important benchmark: three years: Once employees reach their third year with their company, job satisfaction increases significantly. Satisfaction jumps from 58.2% to 63.6%.
Are there plans for HOMB expansion?
Home Bancshares has been a notable acquirer of lenders in the Texas market. The company expanded into the market in 2021 with its purchase of Happy Bancshares for more than $900 million, which was the company’s most recent acquisition.
Industry analysts at Stevens & Co. released an update on the Texas market last week, highlighting HomeBank as one of four banks that have “consolidated multiple transactions in the region and continue to benefit from premium valuations.”
Holmes executives have consistently said they are interested in an acquisition under the right terms.
Stevens noted that 2023 is one of the slowest years for bank consolidation in Texas. The market is shrinking at 3.35%, well below the 10-year average. Activity has picked up this year, with four mergers and acquisitions (M&A) deals announced.
“We believe that board fatigue and management succession issues are driving consolidation,” the report said, but added that market conditions may continue to dampen M&A activity.
However, the “new reality of fewer M&A buyers than sellers” remains, which has led to deal multiples this year below historical averages.
Funding women’s businesses
The Arkansas Small Business Technology Development Center is offering a free session providing more information on loans, grants and other financing options for women-owned businesses.
The one-hour online session is scheduled for Tuesday at 2 p.m. Registration closes at 1 p.m., one hour before the conference.
Details on funding options will be provided for startups looking for growth opportunities as well as established businesses. This session will discuss specific grant and loan programs and other funding options specifically for women-owned businesses.
Additionally, participants will gain knowledge about options offered by other organizations, such as the Economic Mobility Hub sponsored by the Arkansas Women’s Foundation and loan funds available through the Arkansas Asset Funders Network.
Registration and more information is available at asbtdc.org.
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