The Great Resignation seems like a distant memory as a tightening labor market has encouraged more people to stay put. The 2025 Eagle Hill Consulting Employee Retention Index signaled that the trend of employees staying in their jobs will continue over the next six months.
Consulting firm Korn Ferry coined the term ‘join hugging' to describe what is happening.
"A sense of global events as unpredictable and unprecedented, combined with looming AI disruption, is making workers increasingly unsure," wrote Matt Bohn, senior client partner at Korn Ferry, in a post on the firm's website.
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Job hugging is the main trend now, but it can be like a coiling spring that fuels the next Great Resignation when the labor market improves.
Factors Influencing The ‘Job Hugging' Trend
Bohm wrote that a few factors that have fueled job hugging. He cited global events and artificial intelligence as two key headwinds that have made more people stay put at their jobs.
As more people stay put, they block opportunities for new employees to enter the job market. Normally, people switch jobs after a few years, and a new employee fills the vacant spot. If fewer spots become available for new employees, they will have to compete for fewer jobs, and that can translate into lower pay.
The struggles of people looking for work amid this ‘job hugging' trend are another factor that has made employees want to stay put. They are seeing some people apply for job after job with no results after several months. It's less risky to stay put instead of having no wages arriving for a few months when switching jobs. A high cost of living offers limited room for error.
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Companies Have A Great Opportunity To Retain Talent
Employers have more leverage in current negotiations due to an unfavorable job market. While ‘job hugging' can fuel another Great Resignation, employers who treat their workers well may retain more talent than usual.
"For once, great teammates are not leaving for external jobs every couple [of] years, which means firms can develop those talents and create more internal career paths. The key to capitalizing on the stagnant job market is to implement strong programs for internal development and performance management," Dennis Deans, global human resources business partner at Korn Ferry, said in the firm's post.
Giving workers internal career paths and the opportunity of higher wages can keep them put instead of watching talented workers leave, even when the labor market opens up in the future. Offering reasonable raises during this stretch can also boost retention and build trust.
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Most Employees Are Ready To Bail
Although some companies can use this opportunity to retain talent in the long run, most employees are ready to consider new opportunities when the labor market gets better. A recent Glassdoor survey found that 65% of professionals feel stuck in their current roles. More women than men reported feeling stuck, and 73% of tech workers said that they felt stuck.
The same Glassdoor research also found that 17% of workers who changed employers are now being paid less than they were at their former jobs. Layoffs and return-to-office mandates, displacing workers in a tight labor market, give them fewer opportunities to seek higher-paying jobs right off the bat. Some people are settling for the best job they can find while using it as a launchpad to land a more desirable role.
Some employees aren't waiting for the job market to get better. Glassdoor reported that 39% of employees have a side hustle alongside their regular job. This figure spikes up to 57% for Gen Z and 48% for Millennials. Glassdoor's report concludes that younger generations are leaning more heavily into side hustles, and employers will have to prioritize winning over this group in the future.
The spring continues to coil.
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