The Eagle Hill Consulting Employee Retention Index has reached its highest point yet, climbing to 105.1 for the second quarter of 2024. This increase suggests a promising trend for employee retention through the remainder of the year. This article explores the key findings from the latest index and what they mean for employers.
- Overall Index Increase:
- The Employee Retention Index rose by 8.3 points from the previous quarter, reaching 105.1.
- This increase follows the U.S. Labor Department’s JOLTS report, which showed stable quit rates despite more job openings.
- Generational Insights:
- Baby Boomers: Saw the largest increase to 114, indicating the highest likelihood of staying in their roles.
- Gen Z: Rebounded to 107.4, recovering from previous declines.
- Millennials: Continued a steady climb, scoring 107.6.
- Gen X: Experienced a decline to 94.8, the lowest among generations.
- Gender Differences:
- Male Workers: Increased by more than 14 points to 113, showing greater retention potential.
- Female Workers: Increased slightly to 95.9, with a noticeable gender gap in retention rates.
Driver Indicators
- Organizational Confidence:
- Increased to 104.4, marking the largest jump among indicators.
- Reflects employees’ confidence in their organization’s future and leadership.
- Culture:
- Rose to 104.2, indicating improved sentiment about workplace culture and recognition.
- Compensation:
- Measured at 105.2, the strongest indicator for this quarter, reflecting positive views on compensation and benefits.
- Job Market Opportunity:
- Increased to 101.6, showing stability but remaining the lowest indicator.
The Eagle Hill Employee Retention Index highlights a positive shift in employee retention, driven by increased organizational confidence, improved workplace culture, and better compensation perceptions. Employers should leverage these insights to tailor their retention strategies, focusing particularly on generational and gender-specific factors.
