# Is employee loyalty back? June 03, 2026 • 7 minutes ![Laurie Davies](/content/experience-fragments/edu/us/en/blog/byline/by-laurie-davies/master/_jcr_content/root/container_copy_10389/container/image_2120429180_cop.coreimg.png/1715101769891/laurie-davies-headshot-360x360.png) Written by[Laurie Davies](/blog/authors/laurie-davies.html) ![Jessica Roper](/content/experience-fragments/edu/us/en/blog/reviewed_by/jessica-roper/master/_jcr_content/root/container_copy_10389/container/image_2120429180_cop.coreimg.png/1710194401328/jessica-roper-headshot.png) Reviewed by[Jessica Roper, MBA](/blog/authors/jessica-roper.html), director of Career Services at University of Phoenix ![Man contemplates employee loyalty as he suspiciously eyes a robot waiting for a job interview next to him](https://uop.scene7.com/is/image/phoenixedu/blog-hero-man-in-suit-sitting-in-chair-next-to-robot-with-briefcase.webp?fmt=webp-alpha&qlt=70&fit=constrain,1&wid=700) **In this article** - [AI's impacts on employers and employees](#section1) - [How to navigate the new career landscape](#section2) - [Career resources](#section3) Just like that, the post-COVID Great Resignation is over. Employee loyalty is shifting as AI and economic uncertainty drive lower turnover and a trend now known as job hugging. But staying in one spot isn’t always a sign of a happy employee. ## What is employee loyalty? Employee loyalty looked very different in 2021 and 2022, when, in the wake of COVID-19, employees quit their jobs at unprecedented rates in search of better pay, more flexible working conditions or jobs that better lined up with their values. Today, employee “churnover” has all but screeched to a halt, reaching its lowest level since 2017. Which is great, right? The workforce had a big readjustment and now[everyone loves their job](https://www.phoenix.edu/blog/do-you-really-need-to-like-your-job.html). Not quite. As it turns out, employee loyalty is not the same thing as job hugging. Employee loyalty refers to the commitment of workers to remain with an organization because they feel valued, supported and aligned with its mission. Job huggers, on the other hand, hang on to their roles out of fear or economic uncertainty. Loyalty occurs when employees stay because they feel valued and aligned with their company’s overall mission.  ![Chart outlining how loyal employees remain with an organization because they feel valued, supported and aligned with its mission, while job huggers hang onto their roles out of fear or economic uncertainty.](https://uop.scene7.com/is/image/phoenixedu/blog-infographic-employee-loyalty.webp?fmt=webp-alpha&qlt=70&fit=constrain,1&wid=800) So, which is it? With job turnover at a historic low, how can employers tell whether they’re fostering loyalty in the workplace or simply experiencing a calm before another job-hopping storm? ### Why employee loyalty is important Anyone who has worked for any length of time has worked alongside slackers — those[quiet quitters](https://www.phoenix.edu/blog/quiet-quitting.html)who call in sick every other day and seem to be in a committed relationship with their “away” status. Joking aside, such employees dampen workplace morale and slow down entire teams. And that’s no laughing matter. Employee loyalty flips that script with engaged employees who boost team morale, drive collaboration and show up for work more. In fact, the advisory firm Gallup found that[highly engaged employees](https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx)have 78% less absenteeism from work, 28% less theft and 32% fewer quality defects. Plus, when employees are deeply engaged, they are 21% to 51% less likely to leave, according to Gallup. ## How is AI influencing employee loyalty? In 2020, the major workplace disruptor was found in five simple letters: COVID. Today’s big disruptor comes from only two: AI. Responsible for 55,000 job layoffs in 2025, AI is taking workplaces by storm. The University of Phoenix[2026 Career Optimism Index](https://www.phoenix.edu/career-institute/career-optimism-index.html)®study reveals that: - AI is now responsible for half of employees feeling more capable of advancing or pivoting into new roles. - One in five employees use AI to map career plans. Factor in the reality that a staggering 65% of workers surveyed for Ernst & Young research said they are anxious about AI replacing their jobs, and it’s clear AI is affecting employer and employee alike. So, with employees, there’s a bit of a push-pull. Employees may be using AI to quietly prepare for their next move even as they fear it may replace their jobs. Meanwhile, Deloitte reports that 34% of companies are using AI to deeply transform their businesses, and 30% are redesigning key processes around AI. What’s so interesting is that everyone seems to be afraid. Workers fear losing their jobs, and companies fear losing employees: According to the Career Optimism Index study, 48% of employers expressed concern that their company may not be able to retain AI-fluent workers.  ## What is the future for employee loyalty?  Search “employee loyalty strategies” or “how to create loyalty in the workplace” and you’ll find the usual suspects: compensation, culture and career growth. Meaningful perks and employee recognition programs sweeten the deal. But these are table stakes now. AI is the new sheriff in town, and employers better buckle up. The Career Optimism Index study shows that, at companies that have a clear plan for AI-enabled growth, 87% of employees say they are satisfied with their current job, compared with 72% for companies without such plans. In fact, leaders who adopt AI, get their managers on board and define clear standards may have a competitive edge for talent retention. The Career Optimism Index study recommends four strategies for employers who want to retain talent. - **Define AI career pathways and standards**. One in four employees say there is no clear use policy for AI at work. - **Establish skills assessment systems to foster talent management and internal mobility**. Seventy-eight percent of workers say they would be more likely to stay with their company if they had more opportunity to apply new skills. - **Expand training, tools and formal support**. Six in 10 workers say they need support learning AI tools. - **Build AI capability among managers**. Workers whose managers are knowledgeable about AI feel more positive about their career by a 79% to 61% margin. University of Phoenix Career Institute® ## Career Optimism Index® study The 2026_Career Optimism Index_®study, based on a national survey of 5,000 U.S. working adults and 1,000 employers, finds that workers are increasingly using AI to build skills, boost confidence and prepare for career mobility — even as many remain cautious in a stabilizing labor market. The study also shows employers face growing pressure to provide clearer AI guidance and workforce strategies as demand rises for AI-fluent talent. [Download the report](https://www.phoenix.edu/career-institute/career-optimism-index.html)[Download the infographic](/content/dam/edu/career-institute/doc/career-optimism-index-infographic-2026.pdf) ![2026 Career Optimism Index](/blog/2026/06/is-employee-loyalty-back/_jcr_content/root/container_14213/columns/responsivegrid1/container/container_3768771_co/container_2096920954/container_copy_copy_/columns/responsivegrid1/container/container/image.coreimg.png/1776118905053/coi-image-2026-2.png) ### What should employees do now? University of Phoenix Director of Career Services Jessica Roper advises employees to look beyond fears that may be driving the current job hugging trend. “Fear is a short-term strategy,” she says, noting that clinging to a job for dear life is not a career plan. “One of the biggest things that can help workers in the long term is upskilling or reskilling,” she advises. This can mean gaining skills in AI. Or this can mean_using_AI to brush up on skills. For example, job seekers or workers can prompt AI to: - Upload a job description and resumé - Identify the skills they lack - Identify pathways for gaining those skills - Map other career possibilities - Provide learning plans for getting there “One thing that’s different now is that career journeys are not ladders to climb.[Lateral moves can be beneficial](https://www.phoenix.edu/blog/ideas-for-career-growth-besides-a-promotion.html). For example, a professional might be working in marketing but have a knack for teaching,” she says, implying a career pivot may be in order. Roper acknowledges this can feel unnerving. “We used to develop a toolbox of skills that will send you up the ladder. Now it’s a toolbox of skills that are plug and play,” she says. “If workers can press through uncertainty to get to adaptability, that will help them move forward without feeling stuck.” After all, since 2007, the U.S. has experienced the Great Recession (2007–2009), the Great Recovery (2010–2014), the Great Resignation (2021–2022) and the Great Stay (2023–present). Maybe U.S. labor market trend-spotters are over-relying on the adjective “great.” Maybe what’s been_great_all along has been the American worker. ## How to find a job that inspires employee loyalty  If employee loyalty is the goal, workers have to position themselves for roles in which they can grow. University of Phoenix supports its students and graduates on this journey with a variety of resources that include: - [Career Services for Life®](https://www.phoenix.edu/career-services.html) commitment: University of Phoenix students and graduates can access complimentary career coaching, including guidance on how to build a personal brand and write a resumé. - [Free career resources](https://www.phoenix.edu/career-services.html#career-tools): Browse a range of downloadable guides and templates that help optimize LinkedIn® profiles, get ready for a job interview and write a resumé and cover letter. - [Career With Confidence™ newsletter](https://www.linkedin.com/newsletters/career-with-confidence-6893967615946035200/): Get career insights every week via the University’s LinkedIn newsletter. - [Career-focused webinars](https://www.phoenix.edu/events/webinars.html): Explore a repository of webinars produced by the University, including offerings on the future of work and how to create an effective job search. - [Degrees of Success™ podcast](https://www.phoenix.edu/blog/alumni-chronicles/podcast.html): Listen to stories and insights from alumni who’ve risen in their careers and helped shape their industries. If you’re ready to upskill or reskill,[explore degree programs](https://www.phoenix.edu/online-degrees/find-your-program.html)at University of Phoenix or[request more information](https://www.phoenix.edu/request/request-information). Read more articles like this: [Strategic Networking: How to Build a Professional Network Career Support May 19, 2021 • 5 minute read](/blog/strategic-networking-why-it-pays-to-plan.html)[How to Write a Formal Resignation Letter Career Support March 22, 2022 • 8 minutes](/blog/how-to-write-a-formal-resignation-letter-with-examples.html)[Do You Really Need to Like Your Job Career Support June 18, 2025 • 8 minutes](/blog/do-you-really-need-to-like-your-job.html) ![Headshot of Laurie Davies](/content/experience-fragments/edu/us/en/blog/author_bios/laurie-davies/master/_jcr_content/root/container_1500021835/columns/responsivegrid0/image_2120429180_cop.coreimg.png/1705612047184/laurie-davies-headshot-360x360-1.png) ### ABOUT THE AUTHOR A journalist-turned-marketer, Laurie Davies has been writing since her high school advanced composition teacher told her she broke too many rules. She has worked with University of Phoenix since 2017, and currently splits her time between blogging and serving as lead writer on the University’s Academic Annual Report. Previously, she has written marketing content for MADD, Kaiser Permanente, Massage Envy, UPS, and other national brands. She lives in the Phoenix area with her husband and son, who is the best story she’s ever written.  ![Headshot of Jessica Roper](/content/experience-fragments/edu/us/en/blog/reviewer_bios/jessica-roper/master/_jcr_content/root/container_1500021835/columns/responsivegrid0/image_2120429180_cop.coreimg.png/1715094098935/jessica-roper-headshot.png) ### ABOUT THE REVIEWER Jessica Roper, University of Phoenix director of Career Services, is a seasoned leader with over 15 years of experience in leadership within higher education. She has honed her expertise in student services and career development and is passionate about helping others discover and refine their skills. ![checkmark](/content/experience-fragments/edu/us/en/blog/article-vetted-blurb/master/_jcr_content/root/container_copy/container/image_2120429180_cop.coreimg.svg/1701890876580/differentiators-check.svg) This article has been vetted by University of Phoenix's editorial advisory committee.  [Read more about our editorial process.](/blog/editorial-process.html)