Eagle Hill's Employee Retention Index Finds Stability in Worker Retention into 2026

Overview of the Eagle Hill Consulting Employee Retention Index

As we step into 2026, the Eagle Hill Consulting Employee Retention Index presents an optimistic outlook regarding worker retention. The Index recorded a score of 105.0 at the end of 2025, indicating a slight decline of just 0.8 points from the previous period. This score remains significantly higher than the start of the year and highlights a pronounced improvement in the U.S. workforce retention landscape throughout 2025.

This increase from an initial score of 98.5 at the close of 2024 to 105.0 by the end of 2025 reflects several key trends affecting employee attitudes, including boosted confidence in organizational leadership, enhanced cultural satisfaction, improved perceptions regarding compensation, and softened views on job market opportunities.

Key Findings

1. Cultural Confidence Drives Retention: The various components of the Eagle Hill Consulting Employee Retention Index shed light on shifting perceptions among employees. Organizational confidence saw a marginal decrease, dropping by 1.3 points to a score of 103.4 while the Culture Indicator painted a more positive picture, rising 0.2 points to reach 103.3. This indicates that despite external market factors, employees feel a growing sense of belonging within their organizations.

2. Deterioration of Job Market Views: Contrarily, the Job Market Opportunity Indicator observed a significant decline, decreasing by 2.3 points to 98.7, marking it the lowest-performing sub-indicator in the current measurement period. This trend suggests that fewer employees view viable external job options, prompting many workers to cling to their current roles despite potential dissatisfaction.

3. Millennial Workforce Resilience: Notably, Millennials show the highest retention propensity with a Retention Index score of 115.4. They are more inclined to remain in their current positions, showcasing a 1.2-point gain in this period. Their advanced satisfaction levels in terms of Organizational Confidence, Compensation, and Culture compared to other generations may provide organizations with a valuable opportunity as they seek to groom Millennials for future leadership roles.

4. Diverse Impacts Across Generations: While millennials and certain groups displayed increased retention, a decline was observed among female, Gen Z, Gen X, and baby boomer employees, with this trend aligning with seasonal tendencies typically noticed in the fourth quarter. This suggests an inherent vulnerability among these demographics concerning job stability.

Strategic Implications

Organizations are now at a critical juncture to dissect the reasons behind the stability of their workforce retention. By understanding why employees are remaining, they can address underlying issues masked by high retention numbers. High retention rates may initially appear beneficial but could also portend a lack of employee engagement or fear of seeking opportunities elsewhere.

Employers have a prime opportunity now to bolster their talent pipelines, focusing on upskilling workers and bridging skill gaps that may have been neglected during previous high-turnover periods. The overall findings urge organizations to deepen their focus on staff engagement, ensuring that employees feel valued in their professional environments.

Overall, the Eagle Hill Employee Retention Index serves as a valuable market indicator, expressing trends in worker sentiment based on key retention drivers. Monthly surveys take into account respondents’ opinions concerning their organization's culture, compensation, belief in its leadership, and prevailing job market opportunities. As organizations navigate this nuanced landscape, fostering a resilient work environment will be crucial for sustaining employee loyalty in the face of evolving economic conditions.

To delve deeper into this data and figure out how it applies to your organizational strategies, you can access the full report and subsequent analyses from Eagle Hill Consulting's website.