In a context of economic uncertainty, the trend of the “Great Retention” has begun to significantly affect the labor market in Chile. After the “Great Resignation,” where many employees left their jobs in search of better opportunities, recruiters now face the opposite phenomenon: the “Great Retention.” This trend is characterized by a growing number of workers opting to stay in their current jobs, presenting a challenge for talent firms and recruitment processes in general.
In Chile, this trend has manifested in a decrease in labor turnover. According to data from talent consulting firm Robert Walters, the percentage of employees with less than a year in their current position has fallen to 15% so far this year, compared to 18% observed in the post-pandemic period. This change, although small, reflects a greater preference for job stability in times of economic uncertainty.
A survey conducted by Robert Walters in August 2024 revealed that only 20% of professionals in the Chilean labor market are considering changing jobs in the short term. On the other hand, 64% are open to new opportunities, while 16% prefer to stay in their current position. This suggests that while the willingness to change jobs is not high, there is a general attitude of openness to new options, reflecting a more passive approach to searching for new job opportunities.
Impact on key sectors and business strategies
The impact of this trend has been particularly felt in sectors such as professional services and technology, where labor turnover has traditionally been high. Now, many companies find themselves with larger payrolls and fewer opportunities to incorporate new talent, which can limit innovation and growth. In response, companies in Chile have adopted a more selective approach to hiring, aiming to ensure that each new hire is a long-term investment that adds value to the organization. Alfredo Araneda, Country Manager of Robert Walters Chile, highlights that “clients are being more demanding, extending their selection processes to ensure that each new hire is a long-term investment.”
Although the prolonged retention of employees may seem beneficial in the short term, it also presents challenges. With less turnover, opportunities for the promotion of new talent decrease, which can affect motivation and professional development within organizations. It is crucial for companies to find a balance that allows them to maintain their competitiveness while retaining their key talent.
Reconsidering hiring and retention strategies
Faced with this scenario, many companies are reconsidering their hiring and retention strategies. In a market where the demand for talent remains high, but the supply has stagnated, firms must be agile and proactive in managing their human capital. Robert Walters is working closely with its clients to help them adapt to the changing conditions of the labor market in Chile, ensuring they can navigate this new scenario effectively.
In conclusion, the “Great Retention” is redefining the dynamics of the Chilean labor market, forcing companies to reevaluate their approaches and strategies to ensure their future in an ever-changing environment.
