Today, we’re thrilled to sit down with Ling-Yi Tsai, a renowned HRTech expert with decades of experience helping organizations transform through technology. With her deep knowledge in HR analytics and talent management processes, Ling-Yi offers unique insights into the evolving landscape of employee retention and workplace trends. In this conversation, we’ll explore the phenomenon of “job hugging,” the factors driving historic highs in retention, and the nuances behind employee satisfaction and engagement in today’s complex job market.
How would you describe the concept of “job hugging,” and what does it reveal about the mindset of employees today?
“Job hugging” is a term that’s come up recently to describe employees who are choosing to stay in their current roles rather than seeking new opportunities elsewhere. It reflects a mindset of caution and contentment—many workers feel secure enough in their positions due to factors like culture and pay, so they’re not eager to jump ship. It’s almost like they’re holding tight to what they have, especially in a time when the job market can feel unpredictable.
What do you think is fueling this trend of “job hugging” right now?
I think a big driver is the uncertainty in the broader economy. Even though some sectors are booming, there’s still a lingering sense of instability for many workers. Combine that with improvements in workplace culture and compensation, and people are more likely to stay put. They’re weighing the risks of leaving against the comfort of a familiar role, and right now, staying often feels like the safer bet.
The Employee Retention Index recently hit a historic high of 105.8. What does this figure tell us about the current state of the job market?
This number is significant because it shows a peak in employee intent to stay since tracking began in 2023. It suggests that, overall, workers are feeling more settled in their roles than in previous periods. The job market seems to be stabilizing for many, with fewer people actively looking to switch employers. It’s a sign that organizations are doing something right in terms of retaining talent, even if it’s not universal across all demographics.
How do you see this retention high comparing to trends we’ve observed in the past year or so?
Since the index started in 2023, we’ve seen fluctuations, but this high of 105.8 marks a notable shift. Earlier data showed more restlessness among workers, especially post-pandemic, with the Great Resignation still fresh in everyone’s mind. Now, we’re seeing a reversal where retention is trending upward, likely due to organizations stepping up their game in areas like pay and workplace environment.
Satisfaction with organizational culture and compensation seems to be a key reason employees are staying. What specific elements of culture are making such a difference?
Culture is huge right now. Employees are looking for a sense of belonging, transparency, and alignment with company values. Things like flexible work arrangements, recognition programs, and open communication with leadership are often cited as reasons people feel good about where they are. When workers feel valued and supported, they’re less likely to look elsewhere, even if other offers come their way.
How has the focus on better compensation influenced employees’ decisions to remain in their roles?
Compensation has seen a massive uptick in satisfaction, and it’s not just about base salary. It’s also about benefits, bonuses, and the potential for future earnings growth. When employees see that their financial needs are being met—and that there’s room to grow—they feel more secure. This directly impacts their decision to stay, as money is often a primary motivator for job changes. If that concern is addressed, the urge to leave diminishes.
There’s also a reported high in confidence toward leadership and their ability to manage challenges. How does strong leadership affect an employee’s choice to stay?
Leadership sets the tone for everything. When employees trust their leaders to steer the organization through tough times, it builds a sense of stability. Good leaders communicate a clear vision, show empathy, and make tough calls with confidence. That trust translates into loyalty—employees are more likely to stick around if they believe their leaders have their back and can handle whatever challenges come up.
What are some of the current business challenges that leadership seems to be navigating well, based on recent findings?
Right now, leaders are dealing with a lot—economic uncertainty, hybrid work models, and rapid technological changes, to name a few. From what we’re seeing, many are doing a solid job of adapting by prioritizing employee well-being and investing in tools that make remote or hybrid work seamless. They’re also focusing on clear communication during uncertain times, which helps employees feel in the loop and reassured about the company’s direction.
There’s been a notable jump in satisfaction with compensation and benefits. What do you think has contributed to this shift?
I think organizations have finally recognized that competitive pay and benefits are non-negotiable if they want to keep talent. Over the past couple of years, there’s been a push to adjust salaries to match inflation and market rates. Plus, benefits like health insurance, mental health support, and retirement plans have become more comprehensive. Companies are also being more transparent about pay, which builds trust and satisfaction.
How does the potential for earning growth play into this increased satisfaction among employees?
The potential for growth is a game-changer. When employees see a clear path to higher earnings—whether through promotions, raises, or skill development opportunities—they’re more motivated to stay. It’s not just about what they’re making today; it’s about the promise of tomorrow. That hope for financial progress keeps them engaged and less likely to seek greener pastures elsewhere.
We’re seeing higher retention rates among women and millennials compared to men and Gen X workers. What factors might be influencing women to stay in their roles?
Women are often prioritizing stability and workplace support right now. Many companies have improved policies around work-life balance, parental leave, and flexibility—areas that historically matter a lot to women, especially those juggling family responsibilities. When these needs are met, women are more inclined to stay, as they feel the company understands and supports their unique challenges.
Why do you think millennials are more likely to “job hug” compared to other generations?
Millennials, who are now in their late 20s to early 40s, are at a life stage where stability often trumps risk. Many are building families, buying homes, or paying off debt, so the idea of job-hopping feels less appealing. They also value purpose-driven work and culture, and if they’ve found a company that aligns with their values, they’re more likely to stick around compared to other generations who might prioritize different things.
On the other hand, what might be causing men and Gen X workers to consider leaving their roles?
For men, there might be a stronger pull toward career advancement or higher pay elsewhere, especially if they feel stagnant in their current role. Gen X workers, who are often in mid-to-senior positions, might be experiencing burnout or a desire for a career pivot before retirement. If they don’t see growth opportunities or feel undervalued, they’re more likely to explore other options compared to groups who are prioritizing stability.
While high retention can save on hiring costs, there’s a concern about declining engagement. How can companies identify when engagement is slipping?
Declining engagement often shows up in subtle ways—lower participation in team activities, reduced initiative on projects, or even higher absenteeism. Companies can spot this by regularly checking in with employees through surveys or one-on-one conversations. Tracking metrics like productivity or feedback on internal programs can also reveal if workers are just going through the motions rather than being truly invested in their roles.
Do you have any advice for our readers on balancing retention with maintaining high engagement levels?
Absolutely. Retention is great, but it’s meaningless if employees are just coasting. My advice is to focus on creating “micromobility” opportunities—small, internal moves or projects that let employees grow without leaving the company. Listen to what your people want through regular feedback, and act on it. Invest in learning and development, and make sure managers are trained to spot disengagement early. It’s all about keeping workers challenged and connected to the company’s mission while ensuring they feel valued every day.