Workers are more likely to leave their jobs within the next six months, Eagle Hill Consulting researchers warned employers in a recent analysis of factors that play into retention. “Employers can expect increasing attrition” through mid-2024, they projected.
In their analysis, researchers factored in worker opinions on their level of compensation, their job market prospects, their current workplace culture and overall confidence in their organization. Throughout the past year, the firm’s retention index dropped between Q1 and Q4.
By the numbers: How pay factors into retention
The rate of workers who said they feel confident in their company’s future
The rate of workers who said they feel connected to their organization’s culture
The approximate rate of workers who feel they have better opportunities outside of their current company
The rate of workers who believe they have a path to increase their compensation at their organization.
While the results of this Eagle Hill Consulting report may not inspire confidence, one finding may provide hope: The rate of satisfaction with compensation was the only factor in the index that saw an increase.
Researchers suggested that “looming economic uncertainty” throughout 2023 may have “reframed” workers’ perceptions of their pay, resulting in more positive sentiments about their compensation.
The situational reframe is notable because raises have generally tapered off since first talks of an economic downturn in 2022. Recently, data suggested that almost half (40%) of workers had not seen an increase in compensation in the 12 months preceding. In that same BambooHR report, almost 75% of workers said they would leave their role for a higher salary.
Another study pointed to wage growth slowing, per employer reports. Bill Reilly, managing director of Pearl Meyer advising firm, characterized the worker compensation landscape as “certainly cooling off, consistent with declining overall inflation levels,” but “not gloomy.”
Financial well-being remains a focus for workers going into the new year — it’s one of the main projected 2024 workplace trends, along with debates over RTO, artificial intelligence and how best to address worker mental health.