The Eagle Hill Consulting Employee Retention Index
April 2026 release
Uncover emerging trends. Anticipate shifts in retention. Keep your best people.
Employee retention outlook remains strong despite declining organizational confidence and emerging generational divides
The Eagle Hill Consulting Employee Retention Index rose half a point this period, indicating U.S. workers are more likely to remain in their current roles over the next six months. The Retention Index sits at 105.5, just shy of its historic high recorded in the third quarter of 2025.
This increase in retention outlook is driven by a familiar dynamic seen throughout the past year: U.S. workers report stronger perceptions of compensation and workplace culture, alongside declining confidence in external job opportunities. At the same time, organizational confidence declined for a second consecutive period, reaching its lowest level since 2024, and the data highlight a divergence in retention outlook across generational groups.
Together, the findings show that while employees continue to anchor in their current roles, the workforce dynamics beneath the Index’s rising surface are shifting.
Latest retention indicators
+4.0
Compensation
Rises sharply, reaching a record high
+0.4
Culture
Continues a three-quarter rise, remaining near peak
-2.5
Organizational Confidence
Declines hitting lowest point since 2024
-0.6
Job Market Opportunity
Declines for second consecutive period
Insights on Employee Retention
Employees are expected to continue anchoring in their current roles, supported by improving perceptions of compensation and culture and more cautionary outlooks on external employment opportunities. However, declining organizational confidence among U.S. workers and growing divides across generational cohorts reveal a more complex retention story.
Organizational confidence falls to its lowest level since 2024
The Organizational Confidence Indicator declines for a second consecutive period, falling 2.5 points to its lowest level since 2024. This decline signals that while the U.S. workforce’s retention outlook remains strong, employees’ faith in their organization’s future and leadership is slipping.
Beneath this organizational confidence decline, the data reveal an imbalance across the workforce. Gen Z stands out as the only generation to report rising confidence, with their Organizational Confidence Indicator increasing 7.7 points. However, this increase contrasts with declines across all other generations, including Millennials (-3.3), Gen X (-2.1), and Baby Boomers (-7.0). Looking at the workforce by gender, men report a modest rise in confidence (+1.5), while women experienced a marked decline (-6.6).
A widening generational divide is shaping retention outlook
While the Retention Index remains strong, it masks a division between younger and older workers. The Index reveals a nearly 20-point retention outlook gap separating Gen Z (113.6) and Millennials (113.7) as the most likely to stay, and Gen X (95.6) and Baby Boomers (96.0) as an attrition risk.
This generational divergence reflects a workforce with differing perceptions and loyalty based on career stage. Younger employees report stronger sentiment across culture, compensation, and organizational confidence, while older cohorts trend significantly lower.
A workforce divided by generational perspectives
Gen Z sharply rebounds this period. After declining much of the last year, their Retention Index jumps 10.1 points. This spike is driven by improvements across all key indicators, including Compensation, Culture, and Organizational Confidence. Notably, these gains occurred even as Gen Z shows increasing optimism about external opportunities.
Millennials continue to be the most likely generation to stay in their roles over the next six months, holding the strongest views of workplace culture. However, Millennials have begun to show signs of attrition risk. Their Retention Index declined (-1.7) for the first time in a year, driven by declines in compensation perceptions (-5.5) and weakening organizational confidence (-3.3).
On the other end of the spectrum, both Gen X and Baby Boomers continue a downward trend in retention outlook. Retention Index declines for Gen X and Baby Boomers are driven by weakening organizational confidence and deteriorating perceptions of workplace culture, even as their perceptions of compensation improve this period.
Retention Index findings at a glance
What’s increasing
- U.S. workforce retention outlook, with the Employee Retention Index holding near historic highs
- Perceptions of compensation, particularly among women and Gen Z
- Gen Z’s retention outlook and overall sentiment
What’s declining
- Organizational confidence across most workforce segments
- Perceptions of external opportunities, for all groups except Gen Z
- Retention outlook for Gen X and Baby Boomers as organizational confidence and cultural perceptions decline
Melissa Jezior
President & CEO
“Employees are staying put as outside opportunities feel more limited and internal experiences improve. However, employers should recognize that periods of low mobility can create hidden pressures, including stalled career growth and unaddressed skill gaps. This is a critical moment for leaders to focus not just on retention, but on actively developing and engaging their workforce for the future.”
Track. Assess. React.
The first of its kind, the Eagle Hill Consulting Employee Retention Index tracks quarterly sentiment of U.S. workers across four proven drivers of employee retention, which compose the Index’s 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.
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.
Methodology
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.
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