The first half of 2024 could see US workers taking opportunities elsewhere.
The results from the Eagle Hill Consulting Employee Retention Index at the beginning of 2024 indicate that US employers should expect more employees to leave during the year's first half.
"The Employee Retention Index offers employers an early signal that now is the time to engage with the workers they want to keep," says Melissa Jezior, president and CEO of Eagle Hill Consulting.
The firm queries at least 1,200 adult full- and part-time workers per quarter to forecast shifts in the US workforce based on ongoing employee surveys. The index evaluates four factors:
- The Organizational Confidence Indicator measures employees' confidence in their organizations' future and leadership.
- The Culture Indicator evaluates employee sentiment about workplace culture, connections, and how valued and recognized they feel.
- The Compensation Indicator analyzes how workers feel about compensation, benefits, and financial growth opportunities within their companies.
- The Job Market Opportunity Indicator assesses how employees view their job prospects outside of their organizations as well as their own job security.
When the index increases, that signifies an increase in workforce retention, and vice versa. In the first quarter of 2023, the index sat at 103. By the end of the year, it was down almost 10 points.
Two of the four drivers—organizational confidence and culture—also dropped in the fourth quarter. Only 50 percent of respondents feel connected to their organization's culture. The Job Market Opportunity Indicator stayed at 98, while the Compensation Indicator jumped up three points to 98.
The survey demonstrates that despite results indicating turnover in the first half of 2024, the fact that the only two drivers that fell were organizational confidence and culture is a good sign for the second half of the year; leadership can step in and make changes to drive a positive impact.
Employers have a variety of methods for making changes at their disposal, such as implementing policies to make employees feel more included. Inclusion initiatives help financially, as well. According to a 2023 McKinsey report, Diversity Matters Even More: The Case for Holistic Impact, building inclusive and supportive workplace cultures affects the bottom line. Companies in the top quartile for both gender and ethnic diversity in executive teams are 9 percent more likely to outperform their peers, while those in the bottom quartile are 66 percent less likely to outperform financially.