Turnover is down, but HR leaders are advised to start planning for the next wave of employee mobility
Global turnover plummeted to its lowest level since November 2020, according to data from BambooHR, as the year closes with an "employer-friendly moment" that experts warn will likely be temporary.
BambooHR's latest workforce insights revealed that the labour market continues to stall, marking a year of slowdowns for employers across the world.
"Global hiring, turnover, and job openings all dropped from October to November, and the proportion of turnover to total employees reached its lowest level since November 2020, at just 1.6%," the report noted.
Annually, hiring is also down 14% while turnover is down 21%, according to the findings. This is in contrast with job openings that saw a 15% annual increase.
"The 2025 labour market has seen a series of slowdowns, with significant drops in both hiring and turnover," the report read.
"Those hoping the year will end in a last-minute infusion of activity will have to keep those fingers crossed: November data indicates that the market is continuing to stall."
An 'employer-friendly moment'?
The steady decline in turnover this year likely stems from an ongoing workplace trend that experts previously dubbed as job hugging.
This is a new behaviour observed in the workforce where employees decide to stay put with their current employer amid pessimism about employment opportunities elsewhere.
"Just a year ago, we watched the era of quiet quitting and mass turnover flip into one of 'job hugging' and tighter employer control. That shift has been driven largely by uncertainty as the rise of AI continues to reshape how work gets done," said Lexi Clarke, chief people officer (CPO) at Payscale, in a new Payscale report.
But the CPO warned that this shift in employee behaviour may not last long.
"Yet while this employer-friendly moment may feel reassuring, we know it's likely to be temporary. When confidence and hiring rebound, turnover will follow," Clarke said.
This is a similar warning issued by iHire CEO Steve Flook, who said employers shouldn't get too comfortable with the current situation.
"If the labour market heats up in 2026, job huggers might quickly become job hoppers, and even the most seemingly satisfied workers could be eyeing new opportunities," Flook warned in a previous report.
What should HR do?
This makes retention a challenge for many HR leaders globally for the next year – and means employers need to start planning now, even while turnover is low.
"In 2026, retention isn't about holding people back – it's about earning their choice to stay," Clarke said.
But this retention challenge is compounded by economic tension, where organisations are navigating a constrained budget environment.
Aon's Salary Increase and Turnover Study revealed that organisations in many countries "spent less on salary increases this year" than initially forecast amid lower turnover worldwide.
In the Asia-Pacific, WTW data revealed that the region's actual salary increase in 2025 hit 4.9%, lower than the previous year's 5.1%.
The increase varies per industry. Previous PwC data revealed that wage premiums for AI-skilled talent surged in 2025 globally, hitting an average of 25% in the US due to the lack of salary benchmarks and demand for AI talent.
For next year, salary budgets in APAC are only projected to hit 5.0%. In the US, WTW's July data estimates a 3.5% average increase projected for 2026.
But employees today want more than just a paycheque, according to Clarke.
"They want purpose, flexibility, equitable pay, affordable healthcare, and, increasingly, personalised growth and development," she said.
"Organisations that take a holistic view of the employee experience, blending data with empathy, will see the greatest returns in both loyalty and performance."
She added that employers who can't offer a salary increase next year have to get creative.
"When raises or promotions aren't possible, creative approaches like well-being benefits, remote work stipends, or flexible scheduling can still drive meaningful engagement," she said.
The chief people officer also suggested a rethink on how employers define value, especially in the wake of AI adoption and hybrid work.
"As leaders, we must be intentional about building belonging and relational capital in this new world of work, because technology can enhance connection, but it can't replace it," she said.
"Addressing widening disparities between blue- and white-collar workforces, and ensuring all employees feel seen and supported, will be critical."
