Why 56% of Employees Are Staying Put (And Why It’s a Problem)

In today's unpredictable economic climate, retention rates might look high on paper, but the reality behind the numbers tells a different story. A new phenomenon known as "job hugging" is sweeping the workforce, revealing that while employees aren't leaving, they aren't exactly happy to be staying.

According to the 2026 Employee Benefit Trends Study from MetLife, more than three-quarters of employees plan to stick with their current employer. However, a staggering 56% are "job hugging"—staying in their roles not out of passion or loyalty, but out of financial necessity and fear of a volatile job market.

For inclusive employers and HR leaders, this is a critical wake-up call. High retention doesn't always equal high engagement.

The Danger of False Stability

"As employees cling to their jobs for security, retention alone can give employers a false sense of stability, even as wellbeing, engagement, and productivity quietly erode," warns Todd Katz, head of U.S. Group Benefits at MetLife.

The study highlights a troubling disconnect:

• Only 18% of employees say they plan to stay because they truly want to.
• One-third of workers cite the uncertain job market as their primary reason for staying.
• Financial confidence among employees has dropped to its lowest level since 2012.

When employees stay solely out of necessity, the workplace suffers. These "job huggers" are 54% less likely to be holistically healthy and only half are actively engaged in their work. The result? Higher absenteeism, lower productivity, and a workforce that is simply surviving rather than thriving.

The Solution: Connection and Belonging

So, how do organizations move from transactional retention to genuine commitment? The answer lies in connection.

The study found that feeling seen, valued, and supported is now the strongest predictor of employee wellbeing. When employees feel a deep sense of connection at work, they are:

• 3x more likely to be holistically healthy.
• 2x as likely to be engaged.
• 3x more likely to stay because they want to.

This is where inclusive cultures shine. Connection grows when employees feel a true sense of belonging, are supported in their professional growth, and are recognized for their unique contributions.

Moving Beyond the Transaction

"Forging genuine commitment begins when employees feel seen, supported, and valued, not just retained," Katz adds.

For the myGwork community, this reinforces what we already know: culture is king. Benefits that adapt to diverse employee needs, leadership that fosters psychological safety, and a culture that champions authenticity are what separate a resilient workforce from a stagnant one.

Employers must look past the headcount and focus on the heart of the business. By building environments where professionals feel safe, valued, and connected, companies can turn "job huggers" into engaged, passionate advocates for their brand.