Job Applications Surge but Talent Retention Struggles Remain

Workday’s Global Workforce Report reveals that job applications are growing four times faster than job openings, creating an employer's market. Despite this advantage, companies are struggling with high turnover, especially in communications, education, and nonprofit sectors. Employees in these fields increasingly seek meaningful work, competitive pay, and clear career growth opportunities.

“The job market is shifting to favor employers, but workers are more confident in what they want — competitive pay, clear growth paths, and meaningful work,” said Ashley Goldsmith, Chief People Officer, Workday. To retain top performers, it is essential for leaders to help employees find purpose in their roles.

Supporting this, Phil Willburn, Vice President of People Analytics, Workday, highlights that employees who find their work meaningful feel 37% more accomplished than those who do not. This emphasis on meaningful work could address the reported 45% decline in overall engagement across industries. Research from BetterUp reinforces this, showing that employees who find their work meaningful not only work an extra hour per week but are also 69% less likely to quit within six months. Additionally, they experience significantly lower burnout rates at 6% compared to 75% for those who find their work meaningless. These employees also contribute an additional US$9,078 in annual labor output.

Notably, in Mexico, employees who experience the highest levels of meaning are typically over 65 years old, and work full-time in human resources within the financial services sector, according to Voluntas.

Nonetheless, to address the decline in engagement, Workday suggests investing in internal mobility and removing workplace barriers. Promoting growth opportunities internally and streamlining inefficient processes can significantly boost employee satisfaction and retention.

As the job market continues to evolve, employers must balance the influx of candidates with the challenge of retaining top talent. This requires a focus on providing meaningful work, clear growth paths, and fair compensation. In Mexico, salary remains a critical concern, with 57% of workers expressing dissatisfaction and 36% actively seeking pay raises, as reported by MBN. Therefore, employers should reassess salary structures to improve top talent retention and attraction.