Employee retention soars, signaling end of ‘Great Resignation’ – Eagle Hill 

VIRGINIA, UNITED STATES — Employee retention is on the rise, marking the end of the so-called “Great Resignation.” 

According to Eagle Hill Consulting’s latest report, the Employee Retention Index climbed to 105.1, its highest mark in 18 months and up 8.3 points from the previous quarter.

The report was based on data collected from 1,200 full time or part-time employees on June 3-4, 2024. It highlights a positive six-month outlook, suggesting that workers will stay in their current positions through the end of the year.

“This is welcome news for employers struggling to retain employees, which has become the norm amid a remarkably strong labor market and economy,” said Melissa Jezior, president and chief executive officer of Eagle Hill Consulting.”

This trend is corroborated by the Bureau of Labor Statistics, which reports a year-over-year decrease of 550,000 quits, with the rate holding steady at 2.2%. 

Factors driving employee retention

The report reveals several key factors contributing to increased employee retention:

• Organizational confidence: Workers are showing more faith in their companies and leadership.
• Improved workplace culture: Employee optimism about job culture is up 7% year over year.
• Compensation satisfaction: Workers’ positive outlook on their pay has increased by 6%.

Despite reports of ample job opportunities, employees are prioritizing job security over potential salary increases through job-hopping. This is particularly true for companies that emphasize flexibility and work-life balance.

Employee retention outlook soars as Retention Index hits highest level in 18+ months.

See the data: https://t.co/nvXUF4axqP#employeeretention #retention #employeeturnover #turnover #retentioninex #workforcetrends #workforce pic.twitter.com/78AWxa72aw

— Eagle Hill (@WeAreEagleHill) August 1, 2024

Generational differences in employee retention rates

According to the report, Baby Boomers saw the largest employee retention index increase to 114. Gen Z followed closely with 107.4, after four quarters of relative weakness. 

Millennials, meanwhile, was steady at 107.6, while Gen X was lowest at 94.8 on the Index.

The report is in contrast with a recent Resume Builder survey that found that nearly three in 10 full-time workers are planning to quit their jobs by the end of 2024, potentially signaling “Great Resignation 2.0.” 

Strategies for sustaining employee retention

Jonathan Gove, Eagle Hill’s senior human capital director, advises organizations to capitalize on this “quiet period” by focusing on employee development and innovation. 

Many companies have already implemented successful retention strategies. 

Gympass introduced a “work from where you prefer” policy, resulting in a 69% drop in voluntary turnover. 

Ikea parent Inter Ikea Group focused on improving pay and flexibility, reducing voluntary turnover to 25% by the end of 2023. 

A four-day workweek pilot in the United Kingdom led to a nearly 40% reduction in turnover and a 53% increase in job applications.

As the job market stabilizes, employers are encouraged to continue adapting their policies to meet evolving worker preferences, ensuring sustained retention and a more engaged workforce.