Employee Retention Index Hits Record High as Workforce Stability Strengthens

Retention Index Reaches Historic High

The Employee Retention Index for Q3 2025 has gained 2.9 points to reach a record high of 105.8, marking the third consecutive quarterly increase and indicating stronger workforce stability, according to reports from Eagle Hill Consulting. Sources indicate this means U.S. workers are increasingly more likely to stay in their jobs during the next six months.

Generational Differences in Retention Patterns

When broken down by generation, Millennials are reportedly the most likely to stay with their current employers, reporting a Q3 figure of 114.2. At 97.2, Gen X had the lowest Q3 figure, indicating they are the most inclined to leave through Q1 2026. The data shows distinct generational patterns in workforce stability preferences.

Four Key Indicators Show Universal Improvement

All four indicators for the Retention Index showed increases from the previous quarter, analysts suggest. Organizational confidence rose to a record high of 104.7 for the workforce as a whole, while the compensation indicator gained 6.5 points to reach 109.9. The job market opportunity indicator reportedly gained 5.8 points to 101, and the culture indicator rose 2.4 points to 103.1.

Leadership Perspective on Workforce Trends

Chief Executive Officer and President of Eagle Hill Consulting Melissa Jezior stated that “the historic highs we’re seeing across the Retention Index tell a compelling story: employees are more inclined to job hug than at any point since we began tracking this data.” The report states this trend represents a significant shift in employee sentiment compared to previous years.

Generational Confidence Variations Emerge

When examining organizational confidence by generation, Gen Z and Millennial workers reported strong gains, while Baby boomers and Gen X showed a slight decrease in confidence from the previous quarter. This generational divide in organizational confidence may influence future retention patterns, according to the analysis.

Compensation Satisfaction Reveals Persistent Gap

The compensation indicator reaching a record high of 109.9 represents one of the most significant improvements in the index. However, the report states that when broken down by gender, men continue to report an overall higher level of satisfaction with their compensation than women, “continuing a long-standing gap in compensation sentiment” despite overall gains.

Broader Economic Context

This workforce stability trend emerges alongside other significant economic developments, including DHL Group’s announced $300M investment to boost subsidiary operations and Winsupply’s expansion of its Texas footprint with new waterworks supply locations. Meanwhile, in unrelated sectors, astronomers have proposed theories about a black hole swallowed by a star, demonstrating the diverse range of current developments across industries and fields.

Implications for Employers

The sustained improvement in retention metrics suggests organizations may need to adjust their workforce strategies, according to industry analysts. With employees showing increased inclination to remain in their roles, companies might focus more on engagement and development rather than replacement recruitment. The data indicates this trend could signal a more stable labor market through early 2026.