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Have you noticed that employees are no longer changing jobs as fast as they were before? Or that hiring is slow, with fewer candidates actually making the jump? There’s a reason for that, we’re in the era of job hugging, according to consultants from various companies, like Korn Ferry, Indeed, and other big names in the industry.
So, having no more job hoppers is good for companies, right? People holding on instead of going no-show is better for companies, true–but it’s more complicated than that. Continue reading this article on the challenges and strategies that companies and employees can use to navigate this hiring market according to Fast Company, Forbes, and CNBC.
“The era of ‘job hopping’ is over. Get ready for ‘job hugging.’”
That’s how Grace Snelling begins her piece on Fast Company about the latest labor force trend: job hugging. She cites Korn Ferry’s latest report, which found that employees are no longer jumping from job to job as bigger and better opportunities present themselves; instead, they are staying in place.
Job-hugging means staying at a job despite not being fulfilled or engaged and not looking for another one. This trend has been raising eyebrows, especially compared to 2021 and 2022’s job hopping. Experts believe that AI disruptions, an uncertain economy, and a lack of new jobs are some of the main reasons people are holding on to what they currently have. This downturn happened in part because of the 800,000 job eliminations in 2025, a time when analysts predicted that most companies would recover from COVID slumps, but instead they had the 2024 layoffs and failed to create new jobs.
“Top performers are generally only leaving if they are miserable in their current role, are offered a significant compensation increase, or are feeling very unsettled with their company’s viability, leadership, or culture.”
Top performers would rather stay where they are if there are no big advantages to moving, especially since they would be starting over at another company. This, in turn, affects recruiters, who now have fewer job orders to fulfill and fewer candidates who actually want to make the jump.
Greg Iacurci wrote an article for CNBC all about this same topic, focusing on the workers’ perspectives, potential risks, and economic and social factors that have led to job hugging. He begins the article by pointing out that in just a few years, the Great Resignation became the Great Stay as employees lost the upper hand on the labour market.
This is supported by the fact that the quits rate data from the U.S. Labor Department’s Job Openings and Labor Turnover Survey has hovered at 2% since the start of the year, making it the lowest since 2016 if you ignore the beginning of the COVID pandemic. According to Laura Ullrich, director of economic research in North America at the Indeed Hiring Lab, the quits rate is a good indicator of the workers’ perception of the labour market. People aren’t quitting because they’re not sure if they can find another job.
“There’s quite a bit of uncertainty in the world — economic, political, global — and I think uncertainty causes people to naturally remain in a holding pattern,” said Matt Bohn.
Job-hugging has become a necessity for many as the job market has failed to create new jobs, and the uncertainty that has been ruling across the world has kept people where they are. The thing is, job-hugging is also hurting workers and companies. While staying at a job for a long time used to be a good thing, workers are no longer being rewarded for their loyalty, with job hopping being the best strategy to grow economically and learn new skills, according to trends available.
Meanwhile, companies may be misinterpreting job hugging as loyalty, which could backfire once the labour market lets up, as talent might jump ship for better opportunities.
Once again, Brian Robinson, PhD, writes all about the current trend, warning companies not to misunderstand Gen Z’s job hugging for loyalty. In a chat with Jennifer Schielke, CEO and cofounder of Summit Group Solutions, she talks about the key signs that companies should look out for in their employees.
These are as follows:
“’Employees may not be moving jobs, but they still need to move forward,’ she says. ‘Great leaders will recognize that stability is not the same as engagement and use this time to build a stronger culture that lasts beyond the current market.’”
Now, how can employers address this trend before their talent decides to leave as soon as the job market loosens up? Tara Ceranic Salinas, a professor of business ethics at the University of San Diego, says that prioritizing engagement, listening, and responding to employees’ needs is essential to ensuring that they feel valued. This concept is also known as emotional salary. To ensure that all needs are being met, she recommends these four steps:
As the shift went from workers’ market into employers having the upper hand again, companies still shouldn’t buy their own hype and believe that this current trend will last forever. Job hugging isn’t a good thing, as workers may feel undervalued and run to the first opportunity that may land on their inbox once things settle down. Still, employers can make use of this uncertain time to instead improve their relationship and engagement with their workforce.
A happy, thriving company is only achieved by happy, thriving employees. Engagement, rotation, and dissatisfaction can be turned around by management if they understand and aim to change the reasons why people aren’t fulfilled by their current role and place in the company. By focusing on employees’ growth and purpose, companies are gaining their loyalty and loyal employees are more than happy to go the extra mile.
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