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 reads at 94.5 this quarter, down 3.2 points from Q3. The decline continues the Index’s retreat from Q1, indicating that employees are more likely to leave their jobs in six months, and employers can expect increasing attrition through mid-next year.
Here’s how the Employee Retention Index’s indicators are trending:
View the latest findings
See how the Employee Retention Index’s key indicators are tracking – and learn where employers can most readily act to position themselves ahead of workforce changes.
Key retention insights
The Organizational Confidence indicator, indicative of workers’ confidence in their organization’s stability and leadership, reads at 93.3, a reduction of nearly six points from Q3. Organizational Confidence is also the most pessimistic of the indicators this quarter.
Of the four indicators, organizational confidence is where leaders can have the most influence and impact. By being visible, engaging with employees, and communicating clearly and transparently about how your organization is navigating challenges and uncertainty, you can help your employees feel more certain in how you are adapting and maintaining momentum in times of change.
Less than half (49%) of employees have confidence in their organization’s future.
The Culture indicator, indicative of worker’s satisfaction with cultural elements like connection, meaning, and recognition, also declined. It reads 95.3 for the quarter, down nearly 3 points from Q3.
Culture can make or break your organization, making the fact that only half of workers feel connected to their culture a major concern for employers. Organizations have an opportunity to improve employees’ connection to culture by being intentional about it. If you don’t have one, now is the time to create a culture plan. Clearly define expected behaviors, establish accountability measures, ensure your organization’s policies and practices reflect your core values, and make leaders throughout the organization visible culture champions.
Only half (50%) of workers report that they feel connected to their organization’s culture.
The Compensation indicator, indicative of workers’ satisfaction with their compensation and expectations of future growth, rebounded this quarter. It is the only indicator to show gains, jumping 2.5 points to sit at 97.7.
It’s possible that a cooling job market and looming economic uncertainty have reframed employees’ perceptions around their compensation, resulting in more satisfaction than in previous quarters. Though the Compensation indicator shows employees feel more valued now than in Q3, they are less optimistic about their future potential. As leaders, it’s key to communicate with employees and champion your organization’s whole compensation package: the tangibles like benefits and salary and the intangibles like flexibility, culture, and professional development.
Though the Compensation indicator rebounded, only 37% of employees believe they have a path to increase their compensation at their organization.
Job Market Opportunity
The Job Market Opportunity indicator, reflecting perceptions about job security and the jobs market, remains unchanged at 98.2. The Job Market Opportunity indicator has sat largely unchanged since Q1.
The Job Market Opportunity indicator’s relative stability signals that employees’ intentions to stay or leave are more influenced by confidence and trust in their organization, leadership, and cultural elements like connection and recognition. As such, employers are wise to focus on those elements — good news as organizational confidence and culture are areas where leaders can more easily make changes that drive positive impact.
Four in ten employees believe they have better opportunities outside of their current organization.
President & CEO
“Understanding employee sentiment has evolved into a competitive asset as many industries and government agencies continue to face labor shortages. This new market indicator provides employers with forward-looking insights to inform programs and strategies to retain their people before they face attrition problems.”
Senior Executive Advisor
“Though sentiment among workers has been declining and we forecast increasing attrition in the months ahead, there is some good news for employers. The indicators where workers feel most pessimistic, namely organizational culture and confidence, are also areas where employers can effectively step in and create positive change.”
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.
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