������ý

Just like that, the post-COVID Great Resignation is over. Employee loyalty is shifting as AI and economic uncertainty drive lower turnover and a trend now known as job hugging. But staying in one spot isn’t always a sign of a happy employee.

Employee loyalty looked very different in 2021 and 2022, when, in the wake of COVID-19, employees quit their jobs at unprecedented rates in search of better pay, more flexible working conditions or jobs that better lined up with their values.

Today, employee “churnover” has all but screeched to a halt, reaching its lowest level since 2017. Which is great, right? The workforce had a big readjustment and now everyone loves their job.

Not quite.

As it turns out, employee loyalty is not the same thing as job hugging. Employee loyalty refers to the commitment of workers to remain with an organization because they feel valued, supported and aligned with its mission.

Job huggers, on the other hand, hang on to their roles out of fear or economic uncertainty. Loyalty occurs when employees stay because they feel valued and aligned with their company’s overall mission. 

So, which is it? With job turnover at a historic low, how can employers tell whether they’re fostering loyalty in the workplace or simply experiencing a calm before another job-hopping storm?

Anyone who has worked for any length of time has worked alongside slackers — those quiet quitters who call in sick every other day and seem to be in a committed relationship with their “away” status. Joking aside, such employees dampen workplace morale and slow down entire teams. And that’s no laughing matter.

Employee loyalty flips that script with engaged employees who boost team morale, drive collaboration and show up for work more. In fact, the advisory firm Gallup found that have 78% less absenteeism from work, 28% less theft and 32% fewer quality defects. Plus, when employees are deeply engaged, they are 21% to 51% less likely to leave, according to Gallup.

������ý Director of Career Services Jessica Roper advises employees to look beyond fears that may be driving the current job hugging trend. “Fear is a short-term strategy,” she says, noting that clinging to a job for dear life is not a career plan.

“One of the biggest things that can help workers in the long term is upskilling or reskilling,” she advises. This can mean gaining skills in AI. Or this can mean using AI to brush up on skills. For example, job seekers or workers can prompt AI to:

• Upload a job description and resumé
• Identify the skills they lack
• Identify pathways for gaining those skills
• Map other career possibilities
• Provide learning plans for getting there

“One thing that’s different now is that career journeys are not ladders to climb. Lateral moves can be beneficial. For example, a professional might be working in marketing but have a knack for teaching,” she says, implying a career pivot may be in order.

Roper acknowledges this can feel unnerving. “We used to develop a toolbox of skills that will send you up the ladder. Now it’s a toolbox of skills that are plug and play,” she says. “If workers can press through uncertainty to get to adaptability, that will help them move forward without feeling stuck.”

After all, since 2007, the U.S. has experienced the Great Recession (2007–2009), the Great Recovery (2010–2014), the Great Resignation (2021–2022) and the Great Stay (2023–present). Maybe U.S. labor market trend-spotters are over-relying on the adjective “great.” Maybe what’s been great all along has been the American worker.