In recent years, employee experience has largely been discussed through the lens of engagement, belonging, and the search for meaning. Today, another priority has become just as important: the need for stability.
Mercer’s 2026 Inside Employees’ Minds report shows that employees are staying with their current employers as they look for more stability while navigating economic uncertainty, leaner teams, technological change, and unclear roles. According to the report, employees are more willing to stay with their employers, but they also expect clearer answers on pay, skills development, flexibility, and how their work will change with AI.
This shift is closely tied to a trend increasingly referred to as “job hugging.” The term describes employees staying in their current roles not necessarily because of strong engagement, but because the external job market feels too uncertain or risky.
At first glance, this may look positive for employers. Resignation rates may decline, teams may remain intact, and recruitment pressure may ease. However, if employees stay while mentally disconnecting from their work, this quiet stability can create different risks over time. An employee may still be at their desk, but their energy, curiosity, and willingness to contribute may be fading. You can read more about this in our article, “Employees Are Not Feeling Well.”
As this trend continues, companies need to understand why employees are staying. Are they staying because they see room to grow, or because leaving feels too risky? Today, employees are looking for more than a pay increase or flexible work arrangements. They want to understand how pay decisions are made, which skills will matter in the future, how AI will affect their roles, and how clear the path for internal growth really is.
For employers, the priority now is to make staying feel meaningful and sustainable. Employee retention alone should not be seen as a sign of trust. Real engagement, and the productivity that comes with it, grows when employees feel secure, able to develop, and part of the future of the organization.
