Second Quarter 2024 Index Gains Driven Largely
by Baby Boomer, Gen Z and Male Workers
ARLINGTON, Va., July 22,
2024 /PRNewswire/ -- Employers can expect lower
employee attrition through the remainder of 2024, according to the
latest results of the Eagle Hill Consulting Employee Retention
Index. For the second quarter of this year, the Employee Retention
Index climbed to 105.1, its highest mark to date and up 8.3 points
from the previous quarter.
These results follow the most recent U.S. Labor Department
Job Openings and Labor Turnover Survey (JOLTS) that found that
while hires and job openings rates as a percentage of total
employment were higher for May, the quits rate was unchanged—a
signal that employees are more likely to stay with their employer,
even despite potentially having more outside opportunities. The
Index also aligns with a recent analysis from Aon that found that
voluntary turnover within companies has fallen from 17 percent in
2022 to 12 percent so far this year.
Notably, the Employee Retention Index spike for the second
quarter of 2024 was driven largely by Baby Boomer and Gen Z
employees. Reversing two consecutive quarters, Baby Boomers saw the
largest increase to 114, indicating this cohort is most likely to
stay in their jobs as compared other generations. Gen Z was close
behind, rebounding to 107.4 following four quarters of relative
weakness. Millennials continued their steady climb, scoring 107.6
on the Index. Gen X was lowest and the only generation to see a
decline at 94.8.
When looking at gender, workers who identify as male are more
likely to stay at their jobs for the next six months as compared to
female identifying counterparts. A substantial gender gap remains,
with men increasing more than 14 points to 113, while women
increased less than two points to 95.9.
The Eagle Hill Employee Retention Index is a first-of-a-kind
market indicator that provides employers with early signals of U.S.
workers' likelihood to leave or stay at their job. It tracks worker
sentiment across four proven drivers of retention: organizational
confidence, culture, compensation, and job market opportunity.
"Eagle Hill's latest Employee Retention Index 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. "In fact, the six month
retention outlook is the strongest since we launched the Index in
early 2023."
"The data also signals that Baby Boomers and men are the lowest
attrition risk. Alternatively, Gen X and female employees are the
highest attrition risk, two populations that score substantially
below the overall Index. This detailed demographic data can be
immensely valuable to employers as they craft employee retention
and engagement programs to hang on to their top talent," Jezior
explained.
Jezior added, "We also found intriguing the alignment of views
amongst Baby Boomers and Gen Z, two generations that often are at
odds in terms of workplace views and preferences. Both generations
had sharp and almost parallel increases across three of the drivers
of retention: organizational confidence, culture, and
compensation."
Looking at the Employee Retention Indicators, the Organizational
Confidence, Culture and Compensation indicators all made gains this
quarter. This is good news for employers looking to retain workers,
as increases in these indicators correlate to lower employee
attrition. More specifically for the second quarter of 2024:
- Organizational Confidence came in at 104.4, up
8.4 points for the quarter, representing the biggest jump of the
four indicators. Historically this has been the most volatile
indicator.
- Culture clocked in a 104.2, up seven
points.
- Compensation was measured at 105.2, up 6.6
points for the quarter, the strongest indicator for this
quarter.
- Job Market Opportunity is at 101.6, up 2.8 points.
This is the lowest of the indicators for the quarter, but it
continues to be relatively stable.
Read more about the Eagle Hill Consulting Employee Retention
Index findings.
Each month, the Eagle Hill Consulting Employee Retention Index
forecasts shifts in workforce retention based upon ongoing employee
opinion surveys on factors that directly correlate with employees'
intentions to make job moves:
- The Organizational Confidence Indicator measures how
confident employees are in their organization's future and
leadership.
- The Culture Indicator looks at how employee
sentiment about their workplace culture, connections, and whether
they feel valued and recognized.
- The Compensation Indicator measures how employees view
their compensation, benefits, and ability to grow their
compensation at their organization.
- The Job Market Opportunity Indicator 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 retention in the next six months. As the Employee
Retention Index decreases, it signals to employers that workers are
more likely to leave their jobs, and organizations can expect more
turnover in the next six months.
Understanding employee sentiment at a deep level has evolved
into a competitive asset. With this new proprietary market
indicator, employers have forward-looking insights to help
proactively implement strategies to manage their workforce. While
the Eagle Hill Employee Index isn't a one-size-fits all for
employers, organizations can use it to benchmark their organization
and pinpoint their strengths and weakness. In doing so, employers
can assess and make changes to ensure their workforce is motivated,
engaged, and aligned with the organizational mission.
Results are released on a quarterly basis, including an annual
summary report. Conducted by Ipsos, the Eagle Hill Employee
Retention Index is a nationally representative sample of adults
ages 18 and older who are employed full-time or part-time on a
range of workforce topics. Survey data is collected on a monthly
basis, which commenced in December
2022. The most recent data was collected from June 3-4, 2024.
Eagle Hill Consulting LLC is a woman-owned business that
provides unconventional management consulting services in the areas
of Strategy, Performance, Talent, and Change. The company's
expertise in delivering innovative solutions to unique challenges
spans across the private, public, and nonprofit sectors. A leading
authority on employee sentiment, Eagle Hill is headquartered in the
Washington, D.C. metropolitan
area, with employees across the U.S. and offices in Boston and Seattle. More information is available at
www.eaglehillconsulting.com.
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SOURCE Eagle Hill Consulting LLC