Talent trade-offs: Employability has overtaken flexible working in jobseekers’ priorities

Against a backdrop of macro-economic volatility, shifting demographics and systemic talent scarcity, a new priority is emerging for talent across the globe: employability. This is both a significant shift for workers and a strategic moment for employers to rethink how talent strategies can drive competitiveness in tightening labour markets.

While flexibility remains important, our latest Workmonitor Pulse report reveals talent are willing to make fresh trade-offs to stay relevant and employable in shifting job markets. Similarly, the data indicates that they will make these compromises for stability and well-being.

For organizations, these shifts present an opportunity to realign evolving talent priorities with their business goals and strategies. With more room for negotiation, those who can successfully navigate the “give and take” with talent will be able to build trust and loyalty. In turn, this will pay dividends in terms of resilience, productivity and talent retention.

Our recent survey of more than 5,000 workers across seven countries highlights this shift. When asked to weigh employability – staying relevant, skilled and secure – against remote work, 67% prioritized employability. Similarly, 52% placed greater value on skilling and training opportunities than on working remotely, and 59% said staying employable was even more important than having an exciting or inspiring role.

These findings suggest that investing in career development and continuous learning is a business enabler that helps employers future-proof their workforce and build long-term loyalty.

Work-life balance continues to be a central concern for many employees. Globally, 60% of respondents said they would prefer a less stressful role, even if it meant sacrificing a higher salary.

Forty per cent had already translated this into action and accepted a lower-paid but less stressful role. Gen Z respondents (born between 1997 and 2007) were more likely to have made that trade-off (44%) compared with their older peers.

After reduced stress, flexibility stood out as a key priority, with a large share of talent willing to trade pay (39%) and career progression (43%) for more freedom over when and where they work.

For employers, these insights underscore the link between well-being and performance in creating healthier workplaces is key to attracting and retaining top performers.

When we dive deeper into what flexibility means to talent, our data shows that autonomy over when people work is now more important than where they work.

For more than half of talent (56%), control over their working hours matters more than location flexibility – such as the ability to work from home. Even more say they would forgo a higher salary (59%) for greater control over their working hours. Again, Gen Z was the most likely to have followed through and taken a more flexible but lower-paid role (49%) compared to previous generations.

Along similar lines, 46% said they’d rather have more days off than a pay rise – a sentiment that resonated most strongly with fully remote workers (53%).

For employers, this shift calls for rethinking how flexibility is defined and delivered. By assessing current practices and exploring new ways to give talent greater autonomy over their time, organizations can build more attractive, resilient workplaces.

Shifting views on flexibility are also reflected in respondents’ attitudes to a full-time return to the office (RTO), as employers review their current policies on working arrangements.

Many workers would make significant trade-offs to avoid a full-time return to on-site work, including forgoing higher pay (50%) or promotions (53%). However, they are also clear on what they want in return when an RTO policy is mandated.

A higher salary, more flexible working hours and additional leave are the trade-offs talent seek for full-time on-site requirements. These compromises resonate in particular among those working fully remotely: Three-quarters make their return dependent on more pay, 74% demand greater time autonomy, and 66% want more holidays.

Employability and flexibility are just the starting points in the give-and-take between talent and employers. Our survey finds that when it comes to building long-term loyalty, there are a variety of factors in play.

Asked about what would make them stay in their jobs for the next five years, 74% of respondents said annual salary increases in line with the rising cost of living, 68% mentioned managers who support their career development, and 67% pointed to the importance of shared organizational values. Other influences on long-term retention were the availability of sabbaticals (58%), as well as support for caring for a family member (42%) or ageing relatives (41%).

When employers understand talent’s motivations and situations, they are better positioned to create a work environment that builds trust and fosters retention in the long run.

As talent continues to weigh their priorities and make trade-offs, employers have an opportunity to rethink their role in that relationship and collaborate to find common ground.

In the face of ongoing talent scarcity, organizations must offer the career paths, work formats and supportive environments that resonate with individuals – and align with their commercial strategies. The most effective strategies will focus on adapting work to fit people’s needs, rather than expecting them to conform to rigid work models.

Employers that balance commercial goals with evolving individual expectations will not only retain talent – but also cultivate a workforce that is motivated, agile, and ready to drive future success.