Arlington, Virginia-based Eagle Hill Consulting has developed a new employee retention index that can predict early signs of employees’ likelihood to leave or stay at their jobs.
The index is a leading indicator based on national employee sentiment surveys. For its new index, Eagle Hill Consulting surveyed employees across the nation for more than a year on a monthly basis, focusing on what it believes are four key indicators of employee retention.
Those indicators are confidence in their company’s future and leadership, the culture indicator — which asks about both workplace culture and whether they feel valued and recognized — as well as pay and benefits, and job market opportunity — measuring how employees feel about their job seeking prospects.
Overall, Eagle Hill’s employee retention index, which is released quarterly, is a yellow flag for companies concerned about employee retention.
“This marks the third quarter in a row that the index has declined. This downward trend signals employees are more likely to leave their jobs, and employers can expect increasing attrition through 2024 and we think particularly in Q2,” said Eagle Hill Consulting CEO Melissa Jezior.
All four categories fell in the fourth quarter. The organizational confidence indicator fell the most.
The index can be a tool for companies to monitor overall national trends and address their enterprise’s own weaknesses. On the other hand, a heads up that employee attrition could rise can also be helpful.
“For those employers looking to reduce their head count, anticipating that more workers may leave means they could avoid layoffs,” Jezior said. “Another example is maybe employers who are looking to scoop up talent will have an indicator on when to ramp up their recruiting.”
Eagle Hill Consulting’s employee retention index, conducted by Ipsos, is a nationally representative sample of both full-time and part-time employees and can be accessed for free online.
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