Retention numbers continue to climb, indicating that workers will “job hug” for the next six months and remain in their roles, according to an Oct. 7 report from Eagle Hill Consulting.
The firm’s Employee Retention Index has risen to 105.8, marking the highest point since the index was launched in 2023. Worker sentiment improved in September in particular.
“The historic highs we’re seeing across the Retention Index tell a compelling story: employees are more inclined to job hug than at any point since we began tracking this data,” Melissa Jezior, president and CEO of Eagle Hill Consulting, said in a statement.
“The data indicate that workers are staying because they feel increasingly satisfied with their organizational culture and compensation,” Jezior said. “Workers also indicate they are more confident in their organization’s leadership and ability to navigate a complex business environment.”
Among the index indicators, compensation had the largest gain and jumped to a historic high, reflecting employee satisfaction with compensation, benefits and perceived ability to grow their earnings.
Organizational confidence also reached its highest point since 2023, with culture and job market opportunity indicators increasing as well, reversing previous declines.
Notably, women and millennial workers had significant retention gains and now sit at historic highs, the report found, indicating a higher likelihood of staying in their jobs during the next six months.
However, men and Generation X workers had declines, signaling they may be more inclined to leave their roles in coming months.
Although “job hugging” can indicate less turnover and less money spent on hiring, it may also mean that employees are simply holding onto their roles because they don’t think they have other options, experts told HR Dive. HR pros should look for signs of declining engagement and create “micromobility” opportunities for workers to grow.