Your turnover numbers might look reassuring. That doesn’t necessarily mean your people want to stay.
The current labour market has created what PayScale calls a “job-hugging” era: employees are changing jobs less frequently, but economic uncertainty, slow hiring and anxiety about AI may be keeping people in roles they are no longer particularly happy in. As Amy Stewart puts it, some employees are holding onto their jobs “like you’re hugging a cactus.”
That creates a difficult challenge for HR. Low attrition can look like stability while masking disengagement, pay frustration and employees quietly preparing themselves for their next opportunity.
In this episode of foHRsight, Naomi talks with PayScale’s Ruth Thomas and Amy Stewart about what the latest compensation and flight-risk data tells us about where organizations may be vulnerable.
They explore why new hires can sometimes out-earn longer-tenured employees, why perceived pay fairness can matter as much as actual market competitiveness, and why pay transparency makes it increasingly important for organizations to explain not just what people are paid, but why. The conversation also looks at some less obvious signs of flight risk, from employees seeking bigger titles to acquiring certifications and new skills, and why this slower labour market may actually be the right moment to examine job architecture, internal equity and where your retention dollars will matter most.
For HR leaders, the takeaway is simple: don’t wait for resignations to tell you where the risk is.
About Our Guests
Ruth Thomas is PayScale’s Chief Compensation Strategist and SVP of Marketing, with decades of experience studying compensation, labour-market trends and the evolution of rewards strategy. Her perspective helps connect today’s pay pressures with the broader changes reshaping how organizations attract and retain talent.
Amy Stewart is a manager on PayScale’s content and research team and one of the lead authors of its 2026 Flight Risk Report. Her work draws on PayScale’s proprietary compensation data to identify where organizations may be most exposed to attrition and pay-related retention risk.
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If you are looking for more foHRsight, sign up for our monthly foHRsight newsletter. It’s free and includes access to our quarterly white paper. This quarter’s white paper is about Rethinking Entry-Level work in the Age of AI, produced with Dr. Miranda Rodak from Indiana University’s Kelley school of business - an important topic for HR, Leadership and parents, students and society as a whole! https://www.futurefohrward.com/subscribe
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