Leaders hadn’t even let out their sighs of relief that The Great Resignation was over when quiet quitting, quiet firing, the Great Gloom and more hit HR headlines.
And while “unprecedented times” may seem cliché, the U.S. workforce really is changing more rapidly than ever before. Companies may be experiencing whiplash from the restructuring, re-strategizing, re-training, recruiting and revising that’s happened in the last five years.
Ben Wigert, director of research and strategy workplace management for Gallup, pointed out the “suddenness and scale of change” post-pandemic. “We went from responding to this event to working our way out of it,” Wigert said, noting the Great Resignation came in 2021, followed by some stabilization in 2022. In 2022 and onward, we’re in the second and third waves of change, he said.
The next wave of change
The wave that’s hitting the workforce today, which Gallup dubbed “the Great Detachment,” involves record low employee satisfaction rates (only 18% say they’re extremely satisfied, down from just below 28% in 2015) and employees are seeking jobs at the highest rate since 2015 (51% actively looking).
But those employees are not finding the positions they want or are comfortable leaving for and are instead staying in their less-than-desirable roles. They’re detached, disengaged and likely not doing their best.
This may sound like one of many Gallup surveys to some, but it’s a phenomenon widely acknowledged by labor experts and economists, regardless of what they call it. Rachel Sederberg, Lightcast senior economist and director of research put it this way: “The labor market is tight for those with a bachelor’s degree or above. Employees feel less empowered to seek other employment, and they’re dealing with it by detaching from their jobs.”
“It’s a different version of disengagement,” said Susan Bailey, workplace culture and well-being practice leader for business insurance and benefits broker Marsh McLennan Agency. Bailey noted that the word “attached” has several meanings, among them “joined or connected to something” and “full of affection or fondness.” While Bailey said that many employees, herself included, do feel engaged in their workplace roles, she explained that, for those who are detached or disengaged, something is missing in the job.
A December 2024 Lightcast article summed it up this way: “Whether employees politely resign, begrudgingly stay, or slam the door behind them, the message is clear: Employers have struggled to realign culture, business strategy, and workforce planning in the 2020s.”
The effects of a detached workforce
Employers could take an apathetic stance on the Great Detachment. After all, the pendulum of power has swung back in their favor. Employees aren’t changing jobs as freely as in recent years, and turnover is low, so companies can demand more and concede less.
So why should company leaders take notice? Because sooner or later, a dissatisfied, disengaged workforce takes its toll. “These trends are leading indicators of what’s to come for productivity,” said Wigert, who co-authored the Gallup report on the Great Detachment. “Our data shows employee satisfaction directly affecting productivity. It’s going to start to show a drag on productivity and erosion of companies’ culture.”
Even if leaders don’t subscribe to the link between employee satisfaction and productivity, they might see disengagement as a harbinger of increasing costs and risks. “We know disengaged workers are costly,” said Bailey. “They’re not helpful. They’re risky because they make more mistakes. It’s also less expensive to keep the employees you have than to train new employees.”
In other words, employers should work to keep turnover low, so that when the labor market swings back in favor of employees, they’ll stay.
“There’s also a brand benefit to keeping employees happy and engaged,” said Bailey, who noted that sources like Glassdoor, where employees can rate the organizations where they work, can easily affect a company’s reputation either positively or negatively.
Factors leading to the Great Detachment
Before we examine what employers can do in the midst of this Great Detachment, let’s examine how we got here. Gallup lists five factors leading to this phenomenon.
The first factor listed in the Gallup report is rapid organizational change. It’s no surprise that 73% of employees reported that their organization underwent disruptive change in the last year. Post-pandemic, many companies adjusted by restructuring teams (55% as reported by managers), reducing budgets (46%) and adding responsibilities to employees’ plates (69%). All these disruptions can lead to burnout.
Customer expectations also made Gallup’s list. “Customers are more demanding,” said Wigert “They expect things faster.” Meanwhile, staffing is a problem. As more employees leave, it’s harder for the ones left, and that creates a cycle, he explained.
Employee expectations, too, have changed post-pandemic. Couched in terms of the Great Resignation, the pandemic caused employees to re-evaluate their work-life balance and mental health. Employees want flexibility in work schedules, better benefits and better compensation. “A mismatch between what employees expect and what employers offer can leave employees feeling undervalued and questioning their future,” the Gallup report stated.
The different generations in the workforce have also brought about new expectations. “We’re seeing the different priorities,” said Sederberg. “We’re seeing a lot of value placed on workplace boundaries.”
Hybrid and remote work have also contributed to the Great Detachment by challenging communication and coordination among employees, according to Gallup. Gallup’s survey on hybrid work showed only 33% of hybrid workers and 29% of remote workers saying they strongly agree that “the mission or purpose of my company makes me feel my job is important” in 2024. That percentage has steadily declined since 2021, when 43% of hybrid workers said they strongly agreed and 36% of remote workers said the same.
Finally, Gallup named “broken performance management practices” as a contributor to employee detachment. Wigert noted that many organizations abandoned performance reviews during the pandemic, leaving employees adrift about what’s expected of them, their future with the company, achievements and more. “This is particularly problematic in a highly disrupted environment riddled with changing expectations and employees working remotely more often,” the report stated.
Skills mismatch in the labor force
For years, labor market analytics company Lightcast has studied and reported on the U.S. labor shortage. “The Demographic Drought: The Approaching Labor Shortage” debuted in 2021, followed by “Bridging the Gap in the Labor Force” in 2022 and “The Approaching Storm” in 2024. The reports point to an aging workforce, a declining birthrate, changes in immigration and a mismatch between the industries workers are trained in versus those with open positions, like food service, construction and public safety.
“There’s a decline in labor force participation and a mismatch between the work we need done and the work people want to do or are trained to do,” said Sederberg.
These labor conditions exacerbate the Great Detachment, especially among those with a college degree. Looking at U.S. Bureau of Labor Statistics data, we see job openings at 8.1 million at the end of November 2024. This is nowhere near the 12 million we saw in 2022 during the Great Resignation, but it’s an increase from September 2024’s 7.44 million.
So there are job openings, but employees either don’t have the skills for the available jobs or are not finding compensation and benefits they’re willing to move for. Either way, at least according to the Lightcast, the workforce is in for a bumpy ride, as these demographic and economic trends will continue. “What’s disrupted the workplace is only just beginning,” Lightcast stated in a December 2024 article.
Addressing this wave of workplace upheaval
So, what’s a company to do in the face of a detached workforce and simultaneous labor shortage? “During times of disruption, you have to get back to the basics,” said Wigert. “Organizations are going to have to re-prioritize engagement.”
At the most basic level, that means setting clear expectations. Believe it or not, less than half of employees (45%) reported knowing what’s expected of them a work, according to November 2024 Gallup data. Gallup noted that this lack of clear expectations is even more pronounced among younger workers, new employees, hybrid workers and those in white-collar positions.
Reversing this trend means getting back to regular performance reviews and check-ins and collaboratively setting goals that align with larger team goals, the Gallup report said.
Bailey went a step further, suggesting companies add a question to performance reviews to get a pulse on engagement: what do you see as your future with this organization? This is a way to open a conversation about career paths, expectations and satisfaction, she said.
Another idea Bailey said she’s seen companies use is a daily pulse check of employee engagement. This could be a quick survey question asking how employees feel about their jobs and what they like or don’t like about the company.
Bailey also suggested making performance reviews and checks deliverables-based rather than “based on whether your team light is on.” In other words, measure what employees have accomplished rather than how many hours they’ve worked. Set goals and regularly check on progress, she said.
“It’s all about relationships,” Bailey said, noting that relationships are reciprocal, based on shared values and involve regular communication. Much like in a marriage, she said, there’s a need for each party to understand what’s in it for them. Otherwise, the relationship breaks down.
Compensation and flexibility
In tandem with setting clear and reciprocal expectations, there is a need to evaluate compensation and benefits. Bailey noted that paying employees a comfortable wage keeps them more focused on their jobs, since their basic needs are met.
Sederberg pointed out the economic benefit of paying competitive wages. “The short-term savings from paying less than competitive wages are offset by increasing training costs,” she said.
However, compensation doesn’t always mean raising salaries. It could mean helping employees with daycare or elder care or making work schedules more flexible.
“Anything an organization can do to create flexibility is going to be important,” said Bailey.
Employers need to examine the makeup of their workforce and ask employees what they want, said Sederberg. “There’s not going to be a one-size-fits all solution,” she said.
Small perks make a big impact
Jennifer Dean is president of Houston-based staffing company Dean’s Professional Services, which has won several awards, including ranking among the Best and Brightest Companies To Work For. Dean said her workforce includes many from younger generations, and she’s worked hard to keep them engaged. Occasional half days off, company-provided lunches, jean days and 401k matching are among the perks she offers to the 48 people working in her corporate office.
Dean also prioritizes being present for her workers, having an open-door policy, and recognizing and rewarding accomplishments. For example, she has a bell in the office that’s rung whenever an employee accomplishes something noteworthy.
“I do a lot to make an atmosphere where people want to work,” she said. “I try to find the things that are small but speak loud.”
Employee development and career paths
Sederberg noted that employees, especially those in younger generations, are interested in growth and development, so companies need to be invested in training and career paths to keep them engaged.
“Think about how workers can move around, but not necessarily in a traditional linear movement up the ladder,” she said. Rather, focus on skill adjacency and upskilling. For example, an employee may work as a data scientist and want to move into an engineering role, she said.
“We see a lot of employers thinking about how they can buy, build or borrow employees,” said Sederberg. “Buying an employee off the market can be expensive, but can they build up an internal candidate by offering training? We help companies understand those costs.”
Connection to mission and purpose
Gallup’s report noted that a recent survey showed a record low in how connected employees feel to their company’s mission or purpose. Asked whether the mission or purpose of their company makes them feel their jobs are important, only 30% strongly agreed as of November 2024. The report noted that this percentage is particularly low among younger employees, remote workers and front-line employees.
Gallup underscored the importance of team managers clearly communicating the company’s vision and mission, connecting it to individual contributions and helping employees see how their work is part of the bigger picture.
Bailey took Gallup’s connection advice a step further, suggesting the importance of connection between employees. “Be intentional about helping employees connect to each other at work,” she said.
For example, Marsh McLennan Agency gives new hires a buddy they can talk to and connect with. At another company Bailey is familiar with, a manager of eight entirely remote employees who are all new to the company has set up two hours per week for them to video chat about their personal lives to forge connections.
Looking to the future
What’s on tap for the workforce in the coming years? What’s the next wave of change? Experts provided several predictions.
“The shifting needs of our economy are here to stay,” said Sederberg. She pointed to the continued impact of the demographic shift, with more older people and the balance shifting so that we have more consumers and less workers; shifting immigration regulations impacting the workforce; and changes in new workers’ skills and demands.
Bailey predicted that the workforce would change dramatically in five to 10 years. We can’t even imagine what will happen with technology and jobs, she said.
Her last two predictions, she said, are a bit contradictory. “The future is going to be about connection,” she said. “Organizations that figure out how to offer people these meaningful connections will thrive.”
Conversely, said Bailey, it could be that work will become more transactional, and people will not be so connected to their jobs but instead will be more connected in their lives outside of work.
Wigert is looking to companies to meet challenges head-on. “I think and hope 2025 will be a year of re-imagining,” he said. “All of these challenges are opportunities.”
