January quit rate shows employees are ’nesting.’ What HR needs to know

Employees aren’t rushing for the exits.

The quit rate—or rather, the percentage of US workers who voluntarily quit their jobs—was 2.1% in January, according to the Bureau of Labor Statistics’ (BLS) latest Job Openings and Labor Turnover Summary (JOLTS), released on March 6. This was the lowest level since August 2020.

What’s happening? The upcoming election and the volatility of the economy have caused a lot of uncertainty, Neil Costa, founder and CEO of digital recruitment marketing agency HireClix, told HR Brew. As a result, he said employees are “nesting.” If they feel they have a good gig, they’ll likely be less “adventurous,” career-wise, and avoid making a job switch “unless it’s really going to be worthwhile.”

“The pendulum swings back and forth between who has the power—the employees or the employer,” Costa said. “It’s just going to take some more effort by HR teams to make a compelling argument on why people should make a move.”

What HR can do. HR pros and recruiters looking to get employees to jump ship from competitors will have to offer a strong value proposition, Costa said. Employees want to work for an organization where they feel they can make a difference and grow their careers. Making those opportunities clear to prospective employees will play a key role in improving recruitment.

“It’s going to take better recruiter skills, better relationship building, and better salesmanship from HR people,” Costa said. “I think a lot of HR teams will need to be introspective and really sharpen that messaging on their [employee value proposition].”