Data shows job-switching trend has resulted in greater dissatisfaction | Arkansas Democrat Gazette

Two years ago, employers and economic development officials were agonizing over the Great Resignation — the workplace reshuffle dealt by the pandemic, allowing workers to hopscotch from job to job for a better opportunity.

Resignations soared in the post-pandemic economy as workers and job-seekers used the reawakening of business activity as an opportunity for greater leverage in negotiating while employers scrambled and competed across industries to fill jobs.

Federal statistics show upwards of 50 million American left jobs in 2022 — averaging about 4.5 million quits per month — and most were chasing better pay or benefits or workplace flexibility and getting it.

Well, new data suggests the movement has soured into the Great Regret, as workers who changed jobs since the pandemic are significantly less satisfied with their new positions than their colleagues who stayed.

Job switchers’ overall job satisfaction is down 5.6 percentage points, with doubts chiefly around leadership quality, communications, interest in the work, co-workers and job security at the new company. “Workers who left their jobs since the pandemic’s onset are much more dissatisfied than those who didn’t,” the Conference Board, a business-focused non-profit that represents more than 1,000 corporations worldwide, reported in the survey.

Those results are part of findings that overall job satisfaction in the U.S. has leveled off and those who participated in the resignation upheaval are frequently less satisfied with job conditions, particularly around financial benefits such as bonuses, hard base benefits, wages and promotions.

The job-switching trend has slowed. In 2023, an average of fewer than 4 million Americans quit their jobs in the first 11 months of the year. That compares to 2021-22 when resignation records were set in four different months leading up to the peak of 4.5 million in the spring of 2022. The total number of job quits declined to 44.5 million in 2023 from 50.6 million in 2022, which was the highest on record, following a record set in 2021.

Some of the rising resignations have been attributable to natural attrition as Baby Boomers leave the workforce, a transformation that has been projected to trigger one of the largest workforce upheavals in history.

Job switchers have tended to be in the leisure, hospitality and retail sectors, which generally offer lower pay and benefits. White-collar employees were sticking with their companies — the quitting rate in finance, for example, declined at the start of the pandemic and is below 2%.

Leadership and cultural issues had the greatest gaps in satisfaction between the job switchers and job stayers.

“While wages and key benefits still matter, workers were more focused on positive work culture and experience,” Diana Scott, a human resources leader for the organization, said in announcing the results. “Provided pay and benefits are competitive, leaders will gain the most by offering strong growth opportunities, quality leadership, and work-life balance.”

Location flexibility also remains important for Americans — those with the ability to do some work from home have greater satisfaction that those who are required to be fully on-site. More than 65% of hybrid workers are happy, and job satisfaction drops to 60% for those on-site employees.

Many who resigned were job-hopping for better pay, and those employees are among the most disgruntled today, the survey reported, noting that inflation has chewed up higher paychecks.

Newer employees — including those in the job fewer than three years and those who left during the resignation exodus — indicate they expect to be looking for another job within six months. They are most unhappy with bonuses, promotions, training, recognition and performance reviews.

Yet the review also discovered an important three-year benchmark: job satisfaction increases substantially when an employee reaches a three-year anniversary. Satisfaction shot up from 58.2% to 63.6%.

HOMB EXPANSION ON TAP?

Home BancShares Inc. is getting more attention as a potential acquirer of lenders in the Texas market, which the company expanded into in 2021 with a more than $900 million deal to purchase Happy Bancshares Inc. That was the company’s most recent acquisition.

Industry analysts at Stephens Inc. issued an update last week on the Texas market and highlighted Home as one of four banks that “have integrated multiple deals in the region and continue to benefit from a premium valuation.”

Home executives have consistently said they are interested in an acquisition under the right conditions.

Stephens cited 2023 as one of the slowest years for banking consolidation in Texas, a market that was well below its 10-year average pace at a 3.35 contraction rate. Activity has picked up this year and four merger-and-acquisition (M&A) deals have been announced.

“We’re convinced board fatigue and management succession concerns are driving consolidation,” the report noted, but added that market conditions could continue to dampen M&A activity.

There remains, however, the “new reality of fewer M&A buyers than sellers” and those conditions have lowered deal multiples this year below historical averages.

FUNDING FOR WOMEN BUSINESSES

The Arkansas Small Business and Technology Development Center is offering a free session providing details on loans, grants and other funding options for women-owned companies.

The hourlong online session is scheduled for 2 p.m. Tuesday. Registration closes an hour before the meeting, at 1 p.m.

Details about funding options will be available to target startups as well as more established companies seeking growth opportunities. The session will cover specific grant and loan programs and other financing options, especially for woman-owned businesses.

In addition, participants will get insight into options available from other organizations, including an economic mobility hub sponsored by the Women’s Foundation of Arkansas and loan fund available through the Arkansas Asset Funders Network.

Registration and more information is available at asbtdc.org.

Column ideas or recommendations? Thoughts or musings that need pursuing? Contact me at amoreau@adgnewsroom.com or at (501) 378-3567.