From Fear to Flourish: Strategies to Reignite Engagement When Employees Are ‘Job Hugging’

Employee turnover has been a top concern for leaders for decades. The "Great Resignation" sharpened that fear, leaving many executives bracing for mass departures. Now, though, a new phenomenon is emerging: job hugging. 

At first glance, job hugging sounds like a relief—after all, it means employees aren't quitting. But in reality, it comes with hidden costs. Job huggers stay in their roles not because they're thriving, but because they're fearful of change, anxious about uncertainty, or simply clinging to stability. The downside? They're more likely to disengage, avoid risk-taking, and deliver the bare minimum—ultimately costing organizations up to 23% of their potential profitability, according to Gallup. 

Smart leaders are asking the right question: How can we turn "job hugging" into genuine commitment? The answer lies in creating a workplace culture where employees feel motivated, supported, and valued—not just secure. 

What Is "Job Hugging," and Why Does It Matter? 

The term "job hugging," as outlined by Korn Ferry, refers to employees who cling to their current roles, regardless of satisfaction or alignment with their goals, because they fear the risks of moving on. Rising economic uncertainty, inflation, and lingering instability in the labor market have only intensified this trend.  

From a leadership perspective, job hugging isn't inherently bad. It means employees are less likely to jump ship, which may stabilize headcount. But the risks loom large: 

• Stagnation in innovation. Job huggers often play it safe, avoiding bold ideas or risks that might challenge the status quo. 

• Decline in productivity. Without intrinsic motivation, their performance can hover at "just enough." 

• Cultural drag. Highly engaged employees may grow resentful if they feel peers are phoning it in. 

• Long-term costs. As HR Morning notes, the hidden disengagement of job huggers can quietly chip away at profits, retention, and workplace morale. 

The challenge isn't to eliminate job hugging but to transform it—helping employees move from fear-driven loyalty to flourishing engagement. Leaders who recognize the signals early and act intentionally can turn this moment into an opportunity to strengthen culture rather than allow it to erode. By creating an environment where employees feel safe, supported, and inspired to contribute, organizations can shift job hugging from being a drag on performance to a stepping-stone toward deeper commitment. In this way, what begins as a survival instinct can be redirected into a foundation for long-term growth, resilience, and collective success. 

Five Actionable Steps Leaders Can Take to Reignite Engagement 

The good news? Leaders have powerful tools to turn job hugging into a springboard for growth. By focusing on communication, coaching, culture, and intentional trust-building, organizations can shift employees from surviving to thriving. Instead of seeing job hugging as a threat, leaders can treat it as a signal—an invitation to look more closely at the employee experience and identify what's holding people back. With the right approach, job huggers can evolve into some of the most loyal and productive team members, because once fear is replaced with confidence and support, the same instinct that kept them holding on can be channeled into long-term commitment and performance. 

Here are five actionable steps to consider: 

1. Show You Care: Listen Actively and Respond Thoughtfully 

It's easy to assume silence equals satisfaction. But job huggers often don't speak up, even when frustrated. That's why proactive listening is critical. 

• Conduct quarterly employee experience surveys. These provide real-time feedback on morale, workload, and engagement. 

• Go beyond surveys. Schedule one-on-one check-ins and focus groups where employees can share ideas without fear of repercussion. 

• Most importantly: act on feedback. Nothing erodes trust faster than asking for input and ignoring it. Demonstrating responsiveness shows your team their voices truly matter. 

A caring leader transforms passive loyalty into active commitment. 

2. Invest in Your People: Development as a Retention Strategy 

One hallmark of job hugging is a lack of forward momentum. Employees stay put but stop growing. This stagnation hurts both the individual and the company. Leaders can change this trajectory by prioritizing leadership development and skill-building.  

• Offer professional development programs—from technical training to cross-functional learning. 

• Provide coaching and mentoring to help employees see a future for themselves inside the organization. 

• Build career pathways that highlight how employees can grow without leaving. 

When employees feel like the company is investing in their future, they're far more likely to invest their energy in the present.  

3. Know Your Talent: Use Data to Understand Strengths and Gaps 

Not all disengagement looks the same. Some employees may thrive in one role but feel misaligned in another. Leaders can't guess their way to better engagement—they need real insights. 

• Use talent assessments to uncover employees' strengths, motivators, and blind spots. 

• Map team data to ensure you're placing people in roles that maximize their skills. 

• Encourage employees to share what energizes them—and what drains them. 

As Josh Bersin, a respected HR thought leader, notes, effective talent management requires science and empathy in equal measure. Data-driven insights, paired with open dialogue, help leaders unlock hidden potential in job huggers. 

4. Stand Behind Your Non-Negotiables: Protect Culture from Mediocrity 

While compassion is critical, so is accountability. If job hugging translates into consistently poor performance, leaders must be willing to act. Otherwise, the entire workplace culture suffers. 

• Set clear performance expectations and communicate them often. 

• Recognize and reward those who go above and beyond. 

• Address underperformance promptly. If an employee continues to under-deliver, leaders should be ready to "upgrade talent," reinforcing that mediocrity isn't acceptable. 

Protecting cultural standards not only motivates high performers but also signals to job huggers that coasting isn't a long-term option. 

5. Build Trust with Meaningful Feedback and Transparency 

Fear is at the core of job hugging. Employees cling to stability because they're uncertain about the future—of the economy, their role, or even leadership itself. Transparency is the antidote. 

Trust starts with open communication. Leaders should share the company's direction regularly, not just when times are good. When employees understand both challenges and opportunities, they feel included in the bigger picture rather than left guessing. This doesn't mean overloading them with every detail but offering enough clarity that people can see how their work connects to the organization's goals. 

Delivering meaningful feedback is equally important. Generic praise or vague criticism doesn't help employees grow. Instead, highlight specific strengths, reinforce the behaviors you want to see more of, and address growth areas constructively. When done consistently, feedback becomes a signal of investment rather than judgment—it shows employees you're paying attention and committed to their success. 

Trust also flourishes when leaders model vulnerability. Admitting when you don't have all the answers or when mistakes are made fosters psychological safety. Employees see that imperfection is part of the process, not something to fear. 

Over time, transparency and authentic feedback create a culture of mutual respect. Employees no longer hold tightly to their jobs out of fear; instead, they lean into challenges with confidence, knowing leadership has their back. This shift—from uncertainty to trust—can transform hesitant job huggers into engaged contributors who are eager to help the organization grow. 

Beyond Retention: Turning Job Hugging Into Flourishing 

Job hugging may be a response to fear, but it doesn't have to define the workforce. By leaning into communication, development, accountability, and trust, leaders can transform reluctant loyalty into genuine engagement. 

The real win isn't just retention—it's creating a team that's motivated, resilient, and future-focused. As Gallup’s data highlights, companies that prioritize engagement and culture outperform those that don't, even during uncertain times. 

Flourishing goes beyond keeping people in their seats. It's about cultivating a community of colleagues in which each person sees their roles as meaningful, where they're empowered to innovate, and where they know their contributions matter. This requires leaders to actively remove barriers that cause frustration, provide resources that fuel growth, and recognize achievements in authentic ways. Recognition is especially powerful—it signals that an individual's work has impact, which is one of the strongest drivers of motivation. 

 Leaders should also view building this community as a shared journey. Invite employees into the process of shaping culture, whether through innovation labs, cross-functional projects, or mentorship opportunities. When people feel they have agency in creating the future, they stop clinging to what they have and start investing in what's possible.  

Ultimately, community isn't a perk—it's a strategy. Companies that foster growth, trust, and purpose won't just survive job hugging; they'll emerge stronger, with teams that are energized, loyal, and ready to take on the challenges ahead. 

Why Community Is the Goal 

At a time when economic uncertainty makes employees hesitant to leave their roles, leaders have a unique opportunity. Yes, job hugging reduces turnover risk. But it also carries hidden dangers—disengagement, stagnation, and cultural drag. 

The difference lies in how leaders respond. By showing care, investing in people, leveraging data, protecting standards, and building trust, executives can shift their workforce from fearful job hugging to flourishing engagement. 

The bottom line? Don't settle for employees who are simply holding on. Create a community where they're reaching higher—because when your people flourish, your organization does too.  

Looking for more talent insights or strategic guidance? Talk to a talent strategy partner to discover how TalenTrust can help.