Second quarter 2024 index gains driven largely by Baby Boomer, Gen Z and male workers
Arlington, VA, July 22, 2024 – 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 to 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 onto 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 at104.4, 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 at104.2, up seven points.
- Compensation was measured at105.2, up 6.6 points for the quarter, the strongest indicator for this quarter.
- Job Market Opportunity is at101.6, 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 Retention Index isn’t a one-size-fits all for employers, organizations can use it to benchmark their organization and pinpoint their strengths and weaknesses. 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.
Media Contact: Susan Nealon | 703.229.8600 | snealon@eaglehillconsulting.com | @WeAreEagleHill
