ARLINGTON, Va., Jan. 15, 2025 /PRNewswire/ — The latest Eagle Hill Consulting Employee Retention Index measures a substantial dip of 6.2 points to 98.5 for the fourth quarter of 2024, the first notable decline in 12 months and the largest in two years. While employee attrition rates had been falling in 2024, the Employee Retention Index signals that this trend could reverse in the new year with worker departures potentially heading upwards through mid-2025.
The Employee Retention Index follows two key U.S. economic reports, and the Index results are largely aligned with this new jobs data. The latest Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) data found U.S. job openings unexpectedly increased last November to 4.8 percent, the highest level of job openings since May. Meanwhile, the Department of Labor reported that hiring blew past expectations in December, adding 256,000 jobs in December while the unemployment rate ticked down to 4.1 percent.
“We’re seeing two important shifts in Eagle Hill’s latest Employee Retention Index,” said Melissa Jezior, president and chief executive officer of Eagle Hill Consulting. “First, workers are feeling more confident about their job opportunities — the biggest rise we’ve seen in two years. Second, worker satisfaction with their organization’s culture is deteriorating, with culture now a lagging indicator of retention. Taken together, there’s a substantial likelihood that employers may see a big jump in employee attrition in the first half of 2025, potentially ending ‘The Great Stay.’ While that may be good news for companies looking to reduce headcount, it could present a problem for employers facing chronic worker shortages.”
Looking at various demographics, the Employee Retention Index finds that women and Baby Boomers are most likely to leave their jobs in the coming six months. In contrast, workers who are most likely to stay in their jobs are men and Millennials. Generation Z is the only generation of U.S. workers more likely to stay in their jobs than indicated in the previous period.
U.S. Government workers’ Retention Index remains relatively stable in Q4, declining slightly by 1.6 points. The government Employee Retention Index (103.0) remains stronger than that of the American workforce (98.5). Comparatively, government employees report more optimistic views of their compensation and organizational culture than the average U.S. worker and less confidence in their organization and job market opportunities. It will be important to watch for shifts in this sector of the workforce as a new administration takes power on January 20th.
The Eagle Hill Employee Retention Index is a first-of-a-kind market indicator that provides employers with early signals of U.S. workers’ likelihood to leave or stay at their job. It tracks worker sentiment across four proven drivers of retention: organizational confidence, culture, compensation, and job market opportunity.
Read more about the Eagle Hill Consulting Employee Retention Index findings.
Each month, the Eagle Hill Consulting Employee Retention Index measure shifts in workforce retention based upon ongoing employee opinion surveys on factors related to worker intentions to change jobs. As the Employee Retention Index increases, it signals an increase in retention in the next six months. As the Employee Retention Index decreases, it signals to employers that workers are more likely to leave their jobs, and organizations can expect more turnover in the next six months.
Understanding employee sentiment at a deep level has evolved into a competitive asset. With this new proprietary market indicator, employers have forward-looking insights to help proactively implement strategies to manage their workforce. While the Eagle Hill Employee Index isn’t a one-size-fits all for employers, organizations can use it to benchmark their organization and pinpoint their strengths and weakness. In doing so, employers can assess and make changes to ensure their workforce is motivated, engaged, and aligned with the organizational mission.
Results are released on a quarterly basis, including an annual summary report. Conducted by Ipsos, the Eagle Hill Employee Retention Index is a nationally representative sample of adults ages 18 and older who are employed full-time or part-time on a range of workforce topics. Survey data is collected on a monthly basis, which commenced in December 2022. The most recent data was collected from December 2 -3, 2024.
Eagle Hill Consulting LLC is a woman-owned business that provides unconventional management consulting services in the areas of Strategy, Performance, Talent, and Change. The company’s expertise in delivering innovative solutions to unique challenges spans across the private, public, and nonprofit sectors. A leading authority on employee sentiment, Eagle Hill is headquartered in the Washington, D.C. metropolitan area, with employees across the U.S. and offices in Boston and Seattle. More information is available at www.eaglehillconsulting.com.
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SOURCE Eagle Hill Consulting LLC
