MetLife’s 2026 U.S. Employee Benefit Trends Study has identified a growing trend it calls “job hugging,” where employees stay in their positions out of necessity rather than genuine commitment, undermining workplace outcomes even as loyalty metrics appear strong. While employee loyalty stands at 77%, the study found that 56% of workers are staying out of necessity, with only 18% saying they truly want to remain with their employer. Financial confidence among employees has fallen to its lowest level since 2012.
“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. Employees who stay out of necessity show markedly weaker outcomes: only 50% are actively engaged in their work, and they are 54% less likely to be holistically healthy. The research identifies workplace connection – feeling seen, valued, and supported – as the strongest predictor of employee wellbeing, engagement, and commitment.