Memo to employers: overlooking job quality leaves value on the table

After years of fierce competition for talent, many US employers are breathing a sigh of relief. Job hopping is out, and “job hugging” is in. Quit rates have fallen to their lowest point in nearly a decade, and the power dynamic in the labour market has tilted back toward businesses.

But it’s worth asking why workers are holding on. Many aren’t staying because they’re satisfied – they’re staying because they feel stuck. And that’s a problem for businesses as much as it is for workers.

According to the American Job Quality Study (AJQS), the first nationally representative survey of job quality across the entire US workforce, only four in 10 US workers hold quality jobs: ones that provide fair pay, safety, stability, voice and growth. These elements were based on what research shows matters most to workers and businesses. The study was conducted by Gallup and led by Jobs for the Future, the Families & Workers Fund, and the WE Upjohn Institute.

The results should serve as a wake-up call for employers, offering concrete and actionable solutions. Workers with quality jobs report greater well-being than those without quality jobs. They have significantly higher job satisfaction (58% vs. 23%), a stronger sense of purpose (60% vs. 34%), and greater happiness (47% vs. 26%), according to the study.

These may be abstract sentiments, but they hold real business value. Decades of research show that higher satisfaction and purpose are linked to increased productivity, reduced absenteeism and stronger financial performance.

In other words, improving job quality does more than make workers happy; it’s an often-overlooked business strategy that yields a solid return on investment. When people stay in a job because they feel trapped, they disengage, and their performance suffers. They innovate less, collaborate less and deliver less value per hour of labour. The result is worse than turnover, it’s stagnation.

And stagnation is expensive. Gallup estimates that disengaged employees cost employers 34% of their salary in lost productivity and performance. Across the US economy, that adds up to roughly $1.9 trillion in lost value each year.

That’s the hidden risk of today’s “employer’s market”. You might not be losing workers, but you could be losing what actually drives your business forward: energy, engagement, creativity and performance.

The good news: the same data that reveals these risks also point to potential solutions. Improving job quality doesn’t necessarily require a higher payroll. The AJQS identifies dimensions of quality jobs – beyond pay – that matter to both workers and business outcomes: predictable schedules, a safe and respectful environment, input into decisions that shape one’s work, and opportunities to grow and advance. Implementing these changes is often low-cost with high ROI.

Take employee input, often called “worker voice”. Employees who have their desired level of input on working conditions are nearly twice as likely to report high job satisfaction compared with those who do not (47% vs. 25%), the study shows.

Consider UCHealth, a large Colorado healthcare company that focuses on input from its 26,000 employees. The company implemented a “crowdsourcing” approach, consisting of frequent (three times a year), brief surveys (six questions, plus an open-ended question), each focused on a single topic. The CEO leads a session at each of the 12 hospitals to discuss the results, and requires leaders to act and publicly report on progress. The company reports increased employee engagement by 15%, improved trust in leadership by 18+%, and achieved measurable improvements in patient care, now ranking in the top 25% in patient satisfaction.

In today’s rapidly changing labour market, opportunities to learn, build skills and gain experience help employees stay competitive and can also yield positive returns for businesses. Gallup estimates that organizations that invest in employee development report higher productivity, better retention and stronger innovation pipelines.

Nearly half (45%) of employees who participated in employer-provided skills training and education are highly satisfied with their job, compared with just 27% of those who did not, according to the American Job Study.

Enterprise software company Workday offers employees opportunities to develop new skills and gain experience in new areas of work, including new departments, through short-term internal projects, known as “gigs”. More than 4,000 of its 24,000 employees have used the internal CareerHub platform, and Workday reports that the initiative boosts internal mobility and team efficiency. Between February 2023 and January 2024, at least 30% of Workday’s hires were internal candidates, and 80% were more likely than external hires to be rated as a top performer in their first performance check-in in their new role.

The experiences of UCHealth and Workday are just two examples of a broader truth. Whether through greater voice, better scheduling, or clearer paths for learning and advancement, employers that listen and respond to what workers value most earn something hard to buy: loyalty and sustained performance.

Few companies take a close look at how good their jobs really are. But those that do are seeing benefits – such as lower turnover, greater engagement and stronger performance. With budgets tight, improving job quality has become one of the most reliable ways for employers to get better results, and it’s something investors, customers and workers are paying attention to.

Investing in job quality is a low-cost way to deliver powerful business returns. As the American Job Quality Study data makes clear, better jobs aren’t just good for workers – they’re good business. Employers who fail to seize the opportunity are leaving value on the table.