Gone are the days when an employee would retire comfortably from the company that they worked for most of their (if not their entire) career. In recent years, instead of focusing on growing within a single organization, the increasing trend is to continually seek newer and more exciting opportunities. Much like the market for mobile phones and televisions, employees know there is an upgrade right around the corner, making employee retention a top issue for many organizations.

Why Is Today’s Competitive Labor Market Leading to More Voluntary Turnover?

While unemployment rates are at an all-time low, career options are also at an all-time high. Employees can choose a career in virtually any industry, and with available online education, it’s easier than ever to gain the necessary skills to make a transition at any point in their careers.

This transformation in our economy has led to unprecedented levels of voluntary turnover. According to the Bureau of Labor Statistics, 3.5 million people voluntarily left their employer in November 2019,¹ which is an increase from two million in November 2009.²

With the inclusion of new roles, recruitment marketing tactics, and upgraded total rewards packages, companies continue to find ways to attract new talent and provide rewarding career opportunities, thus creating increased competition in the marketplace.

Reason 1: Job Growth Remains High

The Washington Post recently reported that 266,000 jobs were added in November 2019 and the unemployment rate was at 3.5%, a 50-year low.³ Specifically for the construction industry, job growth is expected to rise 11% by 2028, which is much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics.⁴

Employers are constantly looking for ways to expand and innovate, which has led to the creation of new departments and roles as the economy has grown.

Not only do job seekers have endless opportunities at their fingertips, but employers also are competing for top talent, often seeking already-employed individuals who are experiencing career success.

Simply put, it’s a candidate’s market where employees leave for better opportunities elsewhere – even if they’re engaged and happy in their current roles.

Reason 2: Consumer Marketing to Job Seekers

The rise of social media and networking sites (such as LinkedIn) makes it easy for employers to target prospective talent, as candidates have increased visibility. Organizations are taking advantage of these tools to proactively reach out and nurture relationships, which often leads to job opportunities. The combination of these trends and the rising number of career options available has caused companies to step up their recruitment marketing tactics. Instead of simply posting a job and waiting for candidates to apply, organizations are employing marketing strategies similar to those aimed at increasing sales or bringing in new business.

Applicant tracking systems have evolved to function like customer relationship management (CRM) systems, where companies can send targeted e-mails and job recommendations as well as customize a candidate’s experience to help prospective talent buy into the organization’s employee value proposition. In addition, larger companies are employing entire recruitment marketing teams dedicated to ensuring that the company’s employment brand is effectively communicated to the right audience at the right time to attract new talent.