#Washington, D.C. #Job Security #Employee Retention #Eagle Hill

A Closer Look at the Eagle Hill Retention Index

In a recent report from Eagle Hill Consulting, the Employee Retention Index has seen a slight increase, reaching 105.5 in the first quarter of 2026. This marks a 0.5 point rise from the previous quarter, indicating a steady commitment among American workers to their current roles in a challenging job market.

Understanding the Retention Index

The Employee Retention Index serves as a key indicator of how likely employees are to stay in their jobs over the upcoming six months. With the current figure hovering just below its historical peak, it reflects a significant trend: workers are feeling more secure in their positions, despite external uncertainties of the job market.

Melissa Jezior, the CEO of Eagle Hill Consulting, noted, "Employees are staying put as outside opportunities feel more limited and internal experiences improve." This sentiment captures the essence of the current employee mindset, which prioritizes stability and job satisfaction over new opportunities that appear less assured.

External Job Market Conditions

The retention outlook for U.S. employees should be seen against the backdrop of a cooling job market. Job openings are less abundant, leading many workers to choose the safety of their current roles instead of venturing into uncertain terrains. This trend aligns with data from the Job Openings and Labor Turnover Survey (JOLTS), which reported that the quits rate has dropped to 1.9%, the lowest since 2020. This decline is indicative of a shrinking confidence in the job market, reflecting broader economic conditions.

A Closer Look at Employee Sentiment

Key Indicators of Retention:

• - Compensation Indicator: Increased by 4.0, reaching record highs, indicating that many employees view their pay favorably.
• - Culture Index Indicator: Continued to grow steadily by 0.4, demonstrating positive employee sentiment about workplace culture.
• - Job Market Opportunity Indicator: Decreased by 0.6, showing a pessimistic view regarding external job prospects.
• - Organizational Confidence Indicator: Fell by 2.5 points, suggesting a growing doubt in leadership and the organization's future direction.

Generational Divide: The index further reveals a widening gap in retention outlook between different age groups. Younger generations, such as Gen Z and Millennials, show a stronger likelihood to remain in their positions, whereas older workers from Gen X and Baby Boomers feel increasing pressure to move on, highlighting different expectations based on generational experiences.

Implications for Organizations

The latest figures from the Eagle Hill Employee Retention Index signal a moment of stability, yet they mask potential long-term challenges. Organizations that rely on high retention numbers without addressing underlying issues may face stagnation. Jezior warned,