Index
The Eagle Hill Consulting Employee Retention Index
The Eagle Hill Consulting Employee Retention Index provides early signals of turning points in U.S. workforce retention. This index monitors key drivers of employee retention, and equips organizations with insights to proactively develop strategies and programs to retain their people.
Track. Assess. React.
The first of its kind, the Eagle Hill Consulting Employee Retention Index tracks sentiment of U.S. workers across four proven drivers of employee retention: organizational confidence, culture, compensation, and job market opportunity. As the Employee Retention Index increases, it signals an increase in workforce retention in the next six months. As the Index decreases, it warns employers that workers are more likely to leave their jobs, and organizations can expect more turnover in the months ahead.
Latest retention indicators
The Employee Retention Index stands at 96.8 this quarter, up 2.3 points from Q4. This upward shift interrupts the Index’s three-quarter steady decline, reflecting a reversal in employee sentiment across key drivers of retention. The Organizational Confidence, Culture, and Compensation indicators strengthened in the first quarter of 2024, while the Job Market Opportunity indicator remains relatively unchanged. This quarter’s gains signal that U.S. employees will be less inclined to leave their jobs later this year.
Year over year, the Index sits 6.3 points below its reading in the first quarter of 2023, the Index’s highest reading to date. Here’s how the Index’s indictors are trending:
+2.7
Organizational Confidence
+1.9
Culture
+0.9
Compensation
+0.6
Job Market Opportunity
Webinar
Employee Retention Index Q1 2024 Results
Want to take a deeper dive into the Q1 Index insights?
Join us for a webinar where we’ll discuss the latest results and what they mean for employers.
Tuesday, April 30
3:00 – 3:45 PM EST
Key retention insights
Organizational Confidence
The Organizational Confidence indicator, indicative of workers’ confidence in their organization’s stability and leadership, experienced the largest gain in Q1, jumping 2.7 points to 96. While employee confidence in their organizations is strengthening, it remains the lowest ranked indicator for the second quarter, after a considerable drop from Q3 to Q4 of 2023. This is in sharp contrast to Q2 and Q3 of 2023, when confidence was the strongest indicator of U.S. workforce retention.
Culture
The Culture indicator, a reflection of workers’ satisfaction with cultural elements including connection, meaning, and recognition, gained 1.9 points to 97.2. This marks the first instance of strengthening employee sentiment regarding organizational culture, which was on a downward trend throughout 2023.
Compensation
The Compensation indicator, demonstrating workers’ satisfaction with their compensation and expectations of future compensation growth, continued to climb in Q1. It reads 98.6, up 0.9 points over the fourth quarter of 2023. The largest contribution to this indicator’s rise resulted from an 8% increase in employees who believe they have a path to increase their compensation at their current organization.
Job Market Opportunity
The Job Market Opportunity indicator, revealing perceptions about job security and the job market, edged up slightly by 0.6 points. It continues to remain relatively steady at 98.8.
Expert insights
Melissa Jezior
President & CEO
“The rebound in employee sentiment means employers now may have some breathing room as extreme labor shortages are easing and job quits are receding. However, for organizations looking to reduce their headcount, our data indicate these employers may face headwinds as they won’t be able to rely on attrition to reduce their workforce and could be in a situation where layoffs are the only option.”
Expert insights
Jonathan Gove
Senior Executive Advisor
“Although employees’ confidence in their organizations continues to improve, it is the weakest of the indicators, lagging the overall Retention Index. Fostering confidence lies squarely within leadership’s control. To sustain the upward trajectory, employers need to intentionally build trust, be visible, and communicate transparently to cultivate confidence within their workforce.”
Methodology
The Eagle Hill Consulting Employee Retention Index is the first of its kind. The Index is based on a monthly omnibus survey conducted by IPSOS of a nationally representative sample of U.S. adults employed full or part time. Quarterly indices and reports are issued based on a minimum of 1,200 aggregated responses per quarter. Respondents are polled on a range of workforce topics including organizational confidence, culture, compensation, and job market opportunity, which compose the Index’s four indicators:
- Organizational Confidence: measures how confident employees are in their organization’s future and their organization’s leadership.
- Culture: measures how employees feel about their workplace culture, connections, feeling valued and recognized.
- Compensation: measures how employees view their compensation, benefits, and ability to grow their compensation at their organization.
- Job Market Opportunity: measures how employees perceive external prospects for employment and job security in the near term.
Related resources
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