Job Hugging: The Newest Trend

Job hugging is the new reality of the labor market, a term coined by consultants at Korn Ferry. It describes employees who cling to current roles, staying mainly out of fear of economic instability and market uncertainty, not genuine job satisfaction. The term recently got a shout-out on The Daily Show.

This cautious behavior has replaced the job hopping seen during the Great Resignation. Confidence in the job market has dropped to its lowest level since 2023. The hiring rate is also at its lowest point in a decade, creating a sense among workers that appealing external opportunities are scarce. This climate drives the hugging trend.

Job hugging is not about loving a job. It is about avoiding risk.

Holding on to a job that no longer fits harms long-term career prospects.

One major cost is missed pay growth. Job switchers usually earn higher salary increases than those who stay. Data shows workers who change jobs often secure larger raises than their peers who remain, meaning staying limits overall earning potential.

Skill development also slows when a role stops challenging you. Without new experiences, learning stalls. When the market improves, employees who stayed stagnant are less competitive, which puts future job security at risk.

Companies suffer too. Low turnover limits the flow of new ideas and slows innovation. Once confidence returns, many organizations could face a wave of resignations, as employees release built-up demand for change.

Three Steps to Overcome Job Hugging

You can fight job hugging by taking action instead of waiting for change.

Pursue Internal Roles. 

Instead of Looking outside, look for new positions or projects inside your company. Internal mobility builds experience without the uncertainty of an external job search.

Gain New Skills. 

Use your stable job as a platform to grow. Focus on abilities that are in demand, such as data analysis or AI tools. Taking a class or completing a training program increases your market value.

Write an Exit Strategy. 

Stop reacting to fear and plan your next move. Research target jobs and the qualifications they require. Write a clear plan with milestones that move you from passive worry to purposeful action.

A stable job should serve as a launchpad for growth. It should not become a habit that blocks potential. Prioritizing growth over fear prevents stagnation trap.

About Dexterous

Dexterous is a boutique recruiting firm focused exclusively on the payments and fintech space.

With deep industry experience, we deliver tailored hiring solutions that drive growth and connect great companies with exceptional talent.

Whether you are building a team or exploring your next career move, Dexterous provides the insight and guidance to help you reach your goals.

Partnering with Dexterous means working with a team that understands the industry and stays focused on what matters most, your success.