A new MetLife study warns that rising employee retention may be misleading as financial stress and job market uncertainty drive what it terms “job hugging,” where employees stay out of necessity rather than commitment. As found in the 2026 Employee Benefit Trends Study by MetLife, although 77% of employees are committed to staying with their current employer, 56% claim they are staying out of fear of the risk of leaving, which is the lowest level of financial confidence since 2012. Only 18% of employees are staying because they want to be there, which poses a hidden risk to productivity, health, and performance.
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Employees who stay out of necessity are less engaged and 54% less likely to be holistically healthy. “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,” said Todd Katz, Head of U.S. Group Benefits at MetLife. The study identifies connection—feeling valued, supported, and recognized—as the strongest driver of engagement and commitment. Katz added, “Forging genuine commitment begins when employees feel seen, supported, and valued, not just retained.”
