Washington, D.C. – October 07, 2026 -- Baby Boomers' likelihood of staying with their employers fell 6.3 points to 90.5 in the third quarter, while Gen Z's retention outlook rose to 112.8, producing a record 22.3-point generational gap, according to the Eagle Hill Consulting Employee Retention Index.
Culture scores erase a year of gains across the workforce
The Culture Indicator dropped 3.1 points to 100.9, the steepest decline among the Index's four components and nearly wiping out 12 months of improvement. Gen X employees reported a 7-point culture decline, Baby Boomers 5.5 points and Gen Z 3.1 points; Millennials were the only cohort to improve, gaining 1 point. Women's culture sentiment fell 3.6 points versus 1.6 points for men.
Experienced employees show the sharpest pullback in commitment
Gen X's Retention Index fell 5.3 points to 93.8, and Millennials declined 0.8 points to 106.8. Compared with a year earlier, retention sentiment is down nearly 10 points among Baby Boomers, 7.4 points among Millennials and 3.4 points among Gen X, while Gen Z's outlook strengthened by nearly 7 points.
"Employers should pay close attention to where retention sentiment is weakening, especially among experienced employees," said Melissa Jezior, president and CEO of Eagle Hill Consulting. "Disengagement among people who lead teams, mentor colleagues and carry institutional knowledge can affect an organization long before they leave."
Other indicators show mixed but mostly softer sentiment
The Organizational Confidence Indicator declined 0.9 points, reversing last quarter's gain. The Job Market Opportunity Indicator edged down 0.3 points. The Compensation Indicator held steady at 104.6 after a 5.6-point drop the prior quarter.
Men and women diverge sharply on external job prospects
Men's Job Market Opportunity Indicator rose 8.8 points to a record 106.0, while women's fell 8.4 points to a record low of 93.4, a 12.6-point gap. Women's overall Retention Index, organizational confidence and culture sentiment all declined in the same period, indicating reduced perceived options did not translate into stronger employer loyalty.
Labor data show hiring remains subdued despite retention warning signs
The BLS JOLTS report released September 29 recorded 7.1 million job openings in August, with hires little changed at 5.2 million and the quits rate flat at 1.9 percent. The September jobs report, released October 2, showed employers added 29,000 jobs, down from a revised 133,000 in August. The Index is based on a monthly IPSOS omnibus survey of a nationally representative sample of U.S. adults, with quarterly reports drawing on at least 1,200 aggregated responses; the latest data was collected from July to September 2026.