HR trends and what they mean: Career optimism

Despite economic uncertainty and whispers of a recession, employee career optimism is surging. The latest data from career platform Kickresume found that 70% of employees report a more positive outlook about their professional future compared to recent years, with many feeling excited (39%) and optimistic (38%). 

But what does this wave of optimism tell us? First, workers may feel a more competitive labor market on the horizon, alongside a high demand for skilled workers amidst the rapid adoption of AI and automation. And while some may still feel slightly fearful, many are choosing instead to feel excited for the future.

But these feelings of optimism may differ between generational cohorts. While Gen Z workers feel the most optimistic, older generations like Gen X and Baby Boomers actually feel slightly more anxious — likely due to entering retirement age during uncertain economic times. 

In conversation with Work Life, Hayden Cohen, CEO of Near, explains:

“Older workers are more anxious because they’re closer to retirement at a time when inflation, recession or both could seriously hurt their retirement plans…Gen Z workers don’t really have retirement portfolios or home values to worry about and they can wait out any short-term problems.”

A sense of optimism is good news for your organization and your business. To take advantage and boost employee engagement even further, HR teams may want to consider the following: 

• Combat turnover with targeted development: Millennials and Gen Z, while generally optimistic, are also more prone to job hop. Offer tailored development programs and clear career progression to keep these cohorts engaged and invested in your organization.

• Tailor your total rewards and benefits: Different generations value different benefits. Younger workers might prioritize flexibility and mental health support, while older employees might be more focused on retirement planning. A flexible benefits package can keep overall optimism high. 

• Don't assume everyone is on board: While career optimism is on the rise, some employees might be feeling left behind. Regular check-ins and open communication can help you identify and address any concerns or anxieties about career advancement.

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That's all for this week's edition of Personio Pulse: This Week in HR. Check back next week as we continue to dissect the latest trends impacting the ways we work. 

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