?? 2025 Employee Turnover Alert: Is Your Organization Ready?
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As we approach 2025, a new trend is emerging: employee turnover could soon rise. Although attrition rates have been low this year, recent data from the Eagle Hill Employee Retention Index hints at changes that may see more employees leaving their roles by early 2025. Here’s what the numbers are saying, and why it matters for your organization:
?? 1. The Retention Index Holds Steady but Reveals Key Shifts
In Q3 2024, the Employee Retention Index slightly decreased from 105.1 to 104.7. While this shift may seem small, it signals that employees are re-evaluating their career paths. Despite steady confidence in workplace culture and strong compensation, employee optimism about job security and growth has softened.
?? 2. Confidence in Compensation, Yet Challenges Remain
Employee sentiment toward compensation continued to climb, rising 1.7 points in Q3. However, workplace culture sentiment took a hit, dropping by 2.3 points, suggesting that culture may become a deciding factor for those considering a job change.
?? 3. Job Market Confidence Declines, Shifting Priorities
The largest drop in the index was seen in the Job Market Opportunity measure, declining from 101.6 to 98.9. With many employees now looking beyond immediate salary to assess long-term growth and development, organizations must focus on creating a supportive and growth-oriented workplace.
???? 4. Gen Z and Women at Higher Risk of Leaving
Insights from the Index highlight that Gen Z (88.3) and female employees (97.6) are more likely to consider leaving compared to other demographics. Prioritizing engagement with these groups is essential. Tailoring work culture, promoting flexibility, and emphasizing career development could be the key to retaining these valued employees.
?? 5. Key Strategies for 2025 Retention Success
As Eagle Hill CEO Melissa Jezior notes, now is a prime opportunity for organizations to fortify their workforce strategies. While attrition is low, building a solid foundation for culture, compensation, and development will prepare companies for the potential turnover shifts ahead.
?? Stay Informed: The Eagle Hill Employee Retention Index, a monthly indicator, provides employers with insights into employee retention drivers: organizational confidence, culture, compensation, and job market opportunities. Monitoring these metrics helps leaders stay ahead of turnover trends and make timely, data-driven decisions.
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