Introduction

With continued fears around future economic stability, many UK workers under 35 are clinging a little tighter to their jobs. Dubbed “job hugging”, this trend is less about laziness and more about self-preservation. In uncertain times, holding onto the job you know feels safer than jumping ship for an unknown.

For small businesses, this shift is a double-edged sword: it can bring stability and loyalty, but it can also leave you with team members who stay for the wrong reason. The trick is knowing how to spot it, then how to make the most of it.

What is “Job Hugging”?

Recent research shows that 65% of UK workers aged 18–34 plan to stay put in their current role, much higher than in previous years.

Why? Rising costs, slowing wage growth, and fewer job opportunities make the outside world feel riskier. Unlike “quiet quitting” (where employees disengage while clock-watching), job hugging is about hunkering down for safety.

Think of it as wrapping yourself in a familiar comfort blanket, even if the blanket’s a bit threadbare.

Why It’s Gaining Traction

● Economic Instability: The cost-of-living squeeze makes stability priceless.

● Slowed Hiring: With fewer new roles opening up, moving feels riskier.

● Psychological Safety: The devil you know often feels safer than the one you don’t, especially when the benefit of moving may be outweighed by risks.

The Upside of a Good Squeeze: Pros for SMEs

For smaller businesses, job hugging has some surprising benefits:

● Lower turnover costs: Recruiting is expensive. If employees are staying, you save both time and money.

● Culture roots run deeper: Longer tenure strengthens shared values and team cohesion.

● Upskilling opportunities: Stability frees you up to invest in training, rather than constant onboarding.

When Hugs Get Too Tight: Cons for SMEs

Of course, too much clinging can have downsides:

● Lower Motivation and Innovation: If people stay out of fear, motivation and innovation may stall as people lose their passion for the work, but don’t want the risk of moving for something they can feel more passionate about.

● Progression bottlenecks: Fewer exits mean fewer openings for others to grow into.

● Fewer fresh ideas: SMEs thrive on new perspectives, but a static workforce can narrow thinking.

What Employers Can Do

Although there are potential downsides to Job-hugging, leaders have the chance to mitigate any downsides, instead getting the benefits out of this new trend.

● Check in often: Run surveys or one-to-ones to uncover why people are really staying.

● Take Action: Use the insights you have to create change now, while people are lss likely to walk away before you have the chance to meet the challenges.

● Offer growth without exits: Create lateral moves, skills development and mentoring, to give growth even when there is not an immediate move upwards.

● Tap in to their energy: Work out what gives people energy at work, and find ways to spark this in their day to day.

● Create excitement in the longer term: Communicate openly about company health and plans, get people connected to an exciting future that can reignite their passion.

● Double down on culture: Recognition, flexibility, and a sense of belonging keep “huggers” engaged.

To wrap up

Job hugging isn’t about clinging on for dear life, it’s about creating a sense of safety in shaky times. For small businesses, it’s a chance to build loyalty, reduce churn, and nurture talent, provided you don’t let comfort tip into complacency.

Handled well, job hugging can be more than just holding on. It can be about building a workplace worth holding onto.