The labor market is a tumultuous thing, and it’s undergone many ups and downs since the pandemic changed how everyone works. Employers have already seen the Great Resignation, quiet quitting and generational tension as Gen Z matures in the workplace.
But where does the labor market stand now? What trends must you know? And how do you address hidden problems sneaking up on you?
Here are three workforce-related facts to keep in mind for your credit union or bank leadership training.
1. “Quiet Cracking” is the Latest Trend to Watch
“Quiet cracking” is a more insidious version of quiet quitting. Whereas quiet quitting was a choice to do the bare minimum, quiet cracking is an involuntary decline into mediocrity that can infect even your top performers. Reduced mental health (from factors both in and outside of the workplace) erode employee happiness and engagement. As morale decreases, so do standards and productivity.
It’s quiet because it’s gradual and hard to catch. For financial institutions, you might see it pop up after a core conversion. Those conversions are massive amounts of work, and legacy employees might feel stuck when trying to figure out new systems. Over time, their confidence disappears.
Luckily, there are ways to combat quiet cracking. A Fortune article notes that employees feeling stuck may simply need direction or development. Training programs or creating career plans for struggling employees helps them feel like they are moving forward and restores morale.
2. Disengagement Lost the World Economy $438 Billion in 2024
According to Gallup, employee engagement dropped two points in 2024…from 23% to 21%. It sounds small but equates to a staggering $438 billion. “Culture” has long been a buzz word that sounds more fluffy than tangible, but the Gallup data suggests real economic results to not engaging your team.
You must know who you are. You must know where you’re going. And you must not keep it a secret! Develop a real culture unique to you; then tell everyone about it (over and over again).
Building your vision, values, employee events and training programs isn’t an expense. It’s an investment. Sure, cutting those items saves a few bucks in the short run. But investing in them puts money back in your pocket over the long run.
3. The “Silver Tsunami” is Here
The U.S. reached “Peak 65” this year – the year where most Baby Boomers will be eligible to retire. U.S. News & World Report mentions that Baby Boomers still made up 15% of the workforce in 2024. If many of this cohort retire all at once, unprepared businesses will be hit by a “silver tsunami” of lost experience and leadership.
It’s unlikely every Boomer will retire right away, but that doesn’t mean you can delay preparations for the exodus. Whether this year, next year or three more years, the retirements are coming.
Make sure you are acquiring institutional and business knowledge from your most experienced staff. Have your longest tenured employees mentor younger leaders, teaching them helpful tricks and smoothing over potential missteps. Overall, have a succession plan in place. Don’t let the transition to a younger generation of leaders catch you off guard.
Defeat quiet cracking, increase engagement and prepare future leaders…all with our help. Book a free consultation with On The Mark Strategies, and let’s schedule your credit union or bank leadership training today.
