Job Hugging: Understanding the New Employee Trend and Tips to Address It
In the wake of weakening job reports and an uncertain economy, there’s a new trend: job hugging. Job-hopping refers to employees changing jobs frequently and being less likely than ever to stay in one position.
While this may sound appealing to employers, it can also mean that workers are staying in jobs they dislike. Companies can combat this by helping staff plan for the long term and focus on designing desirable career paths, turning “job hugging” into a win for everyone.
Where did the Term “job-hugging” Come From?
Consultants at Korn Ferry coined the phrase in a blog post, referencing the Eagle Hill Retention Index’s findings that most employees plan to stay in their jobs for the next six months. The same surveyed employees also don’t believe that other opportunities await them, with the confidence that they would find another job plunging to its lowest level since 2023, when the Index started collating employee retention data.
Other factors they cited influencing employees to stay put include:
- US job growth figures are slowing substantially during Q2 of 2025
- Global events are being perceived as unpredictable and seismic AI disruption of white-collar jobs
A Cooling Job Market and Shifting Retiree Trends
According to CNBC, hiring has slowed to its lowest rate in a decade. Job growth has conversely slowed, with the ratio of jobs to workers currently being 1:1, compared to 2:1 in March 2022. More CEOs plan to reduce their workforce over the next 12 months, rising to 34% from 27% between Q1 and Q2 of 2025.
The retirement rate is also lower than expected. 2025 falls right in the middle of “Peak 65,” a multi-year period when younger baby boomers are reaching retirement age. With the economy slowing down and retirement savings depleted by rising inflation, some members of this cohort are choosing not to retire full-time.
According to the Employee Benefit Research Institute, 50% of retirees expect to retire gradually over time, meaning they will ramp down their work from full-time to part-time hours. A high 75% expect to work in some capacity while in retirement.
This eliminates the senior roles mid-career employees hope to move into for at least a few more years, deflating any hopes for upward mobility.
Tips for Addressing Job Hugging
Typically, people stay with a company because they like being there. Now, consultants at Korn Ferry allege that many workers may be staying because they have no other options. While this isn’t as severe as people being upset with their jobs, it can lead to stagnation and an overall sense of hopelessness, as well as concern that their job may be at risk.
Earlier in 2025, we covered key retention trends in our Retention Risk Report and various business media. One of them was encouraging career development and growth, which Korn Ferry suggests is key to combating the stagnation that job-hopping leads to. Offering opportunities to advance within the company can give your people purpose, which is critical for strong employee engagement and retention.
Companies can also help more senior employees better navigate a pathway to retirement. Retirement packages or offers to switch from full to part-time engagement could be attractive to those working past their planned retirement age. This could also free up roles for younger employees who may be excited about the opportunity for advancement.
It’s essential to remember that employment trends are constantly changing. How you treat your employees who choose to stay with you now can mean a great deal if the market ever heats up again. It’s simple economics - long-term employees are always better for a company’s bottom line, and you have the golden opportunity right now to cultivate a relationship that will keep them working with you until they retire.
