Dive Brief:
- Workers may be less likely to stay at their current jobs over the next six months, according to Eagle Hill Consulting. Its latest Employee Retention Index showed a decline in the second quarter to the lowest level it’s been in the past 12 months.
- The report found that workers were frustrated by their salaries and optimistic about the potential for a better job elsewhere, despite data that also showed “employees’ confidence in organizations and satisfaction with workplace culture improved.”
- Although retention rates are historically strong, companies are about to enter a period of what Eagle Hill called “increased workforce mobility,” the report said.
Dive Insight:
The current labor market showed job openings exceeding projections and holding steady at 7.6 million, according to Job Openings and Labor Turnover Survey data cited in the report. While the information suggests there are employment opportunities available for people looking to switch jobs, a June jobs report indicates a job market that’s also slowing down.
Melissa Jezior, president and CEO of Eagle Hill Consulting, said employees are “sending employers a nuanced message” that requires careful consideration.
“Employers shouldn’t interpret a slower hiring market as a reason to become complacent,” Jezior said in a statement. “Workers are evaluating the entire employee experience, not just whether they have a job, but whether they see a future with their employer. Organizations that invest in career development, leadership, culture, and meaningful rewards will be in the strongest position to retain critical talent as mobility begins to increase.”
Millennial employees showed the largest retention decline, indicating they’re the generation most likely to leave their current jobs. In addition, millennials reported lower rates across multiple satisfaction metrics, including organizational confidence and compensation and culture, while also saying they were more confident than other generations in the possibility of outside job opportunities.
“As Millennials increasingly occupy management, leadership, and specialized professional roles, this shift could have outsized implications for organizations,” the report said.
Jezior said that when millennials question whether they want to stay in their jobs, “employers risk losing institutional knowledge, leadership continuity, and future executives. The findings underscore why retaining high-potential talent must be a core business and workforce planning priority, not just an HR initiative.”
