Are you familiar with the “Great Resignation”, where during the pandemic in 2021, people voluntarily resigned from their jobs
en masse? Well, it dominated headlines for a long time and that phase may seem to be over. But the labor market has since settled into a phenomenon which is now called the “Great Hesitation”.
It’s described as the economic climate where job candidates are hesitant to make big moves. They carefully weigh options, think about stability, and sometimes decide to stay put rather than take a risk.
The result? Slower hiring cycles, longer decision-making, and a noticeable sense of caution in the job market. For hiring managers, this shift can feel frustrating. Open roles stay unfilled longer, recruiting timelines drag out, and even strong offers can be met with second thoughts.
But it’s not all bad news. Understanding what’s driving this and adapting your strategies can help you turn uncertainty into opportunity.
In this article, we’ll share what's behind the Great Hesitation and how you can navigate it. Dive in, then!
What is Fueling the Great Hesitation?
A number of factors are responsible for this slowdown in job switching.
A major driver is the economic outlook for the U.S. High inflation has caused people to cut back on spending. In response, the Federal Reserve has implemented a series of interest rate hikes.
As higher interest rates work their way through the economy, economists predict a cooling labor market. Tech-related employment across all sectors has recently seen big declines. And the unemployment rate for the tech field has also dropped.
As the competition for talent has slowed down, companies are now more focused on managing their salary expenses.
In the past few years, switching jobs was lucrative. But nowadays
, job switchers are getting smaller pay raises. According to Bank of America, the median pay increase for those who changed jobs has dropped significantly.
High-profile layoffs have also made employees wary. Meta has announced plans to trim 5% of its workforce, for example. Candidates want to be sure they are joining a company that values them!
How to Manage the Problem
The market is in a tricky spot. Since no one can predict when the Great Hesitation will end, here are a few strategies that can help you make the best possible hiring decisions:
1. Strengthen your brand as an employer
In a world where candidates are cautious, your reputation matters more than ever.
People don’t just hit the "Apply" button anymore. They research companies, read reviews, and ask around before making a move. That just shows how important your employer brand is.
More than just a marketing campaign, a
strong employer brand is an authentic reflection of a company’s mission, values, and workplace culture. It's not about superficial perks like ping-pong tables or free lunches, but about creating an environment where employees feel valued, supported, and empowered.
Saying you're a great place to work isn't enough; you need to prove it. Showcase your company’s work environment and what it offers. Highlight flexible work options, professional development programs, and the ways you invest in employee growth. Transparency in pay ranges, career paths, and workplace policies also goes a long way in building trust with candidates.
Your employees are your most trusted brand ambassadors. Gather their testimonials, share their stories, and let them speak about what it’s really like to work at your company. Authentic voices build credibility, which, in turn, attracts talent.
2. Invest in your current workforce
Sometimes the best way to fill open roles is to look at who's already on your team. Internal mobility gives your team members a clear path to new roles in the company.
The Great Resignation taught that people leave for better opportunities. That means it’s a good time to keep your best people.
Giving your employees a chance to grow is a powerful retention tool. A LinkedIn study found that employees at companies with a high rate of internal mobility stay 60% longer.
This approach is also good for your budget! It's a lot cheaper to train an existing employee than to hire a new one.
Take, for example, the healthcare industry. The U.S. is facing a well-documented shortage of primary care physicians, and family nurse practitioners are stepping in to bridge the gap.
Many are pursuing
online family nurse practitioner programs, which provide advanced clinical training while offering the flexibility to balance work, education, and family responsibilities.
According to Carson-Newman University, these programs are specifically designed for registered nurses with a BSN degree who want to become advanced practice nurses.
If you run a healthcare business, you can support such upskilling efforts. Investing in your workforce won’t just help fill roles. It will also help build loyalty, expertise, and a stronger future for your company.
3. Focus on skills-based hiring
Traditional hiring often focuses on degrees, job titles, and years of experience. But this approach can limit your options and discourage good candidates who don’t check every box.
Adopting a skills-based approach can help you find a great candidate. This forward-thinking approach prioritizes a candidate's abilities and potential over traditional credentials. It shifts the focus away from a person's college degree or their past job titles.
This expands the candidate pool to include people who might have been previously overlooked due to a lack of experience or traditional degrees. Well-known companies like Google and Revolut have successfully adopted this approach.
To implement this strategy, identify the specific skills needed for each role first. Optimize job descriptions such that they are skill-rich rather than just a list of requirements. Using skills data can help identify adjacent skills that could be a good fit for a role.
Objective assessments, which can measure both hard and soft skills, are essential. These can include quizzes or take-home projects that show a candidate's abilities in a real-world setting. To reduce bias, you can use blind resumes that hide personal information.
This approach offers a real solution to the white-collar recession dilemma. While there are plenty of jobs, many highly skilled people feel underemployed because of a mismatch between the number of openings and their quality.
But when you focus on skills instead of traditional qualifications, you can find talented candidates who might have been overlooked.
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Looking to the Future
The Great Hesitation is real, but it’s not impossible to overcome. Candidates today want more than just a paycheck. They want security, trust, growth, and balance.
So don't view it as a roadblock: treat it as a reminder to lead with transparency, empathy, and creativity. Meet candidates where they are, show them you can deliver on their priorities, and you’ll turn hesitancy into enthusiasm, and uncertainty into long-term commitment.