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How to turn employee “nesting” into true loyalty and retention

loyalty and retention

With labor markets still tight, many employees are choosing to stay longer at their jobs. But HR professionals shouldn’t mistake this “nesting” behavior for long-term loyalty or investment in the organization’s mission.
The reality is that employees who stick around purely for stability’s sake aren’t necessarily engaged at work — or delivering the value employers expect. In fact, they may be among the 51% of employees who are currently on the lookout for new roles.
Yet, rather than viewing nesting as a problem, HR teams should view it as an opportunity. Lower-than-normal turnover frees up time for other initiatives — including HR and management strategies that can encourage nesters to either re-engage or finally fly the coop.

How can you tell if an employee is nesting?
We all know what an engaged and loyal employee looks like. They’re constantly challenging themselves while also raising the bar for their team, looking for new opportunities to uplevel their work and grow in their role. They understand how their work contributes to their team, or the greater mission of the company. They know why their work matters and they feel a sense of purpose in their work.
By contrast, a nester seems happy where they are, at least superficially. They avoid conversations about professional development and career growth, preferring to cruise along at their current level. They dig their heels in against change or any disruption to their current routines, instead clinging to the status quo they have grown comfortable in. They will be disinterested in taking on new responsibilities, even if they come with a new title or pay increase.
A nester can fly under the radar because they are never the squeaky wheel. They do their jobs competently and never clamor for a raise. They meet the requirements but nothing more. However, complacency shouldn’t be confused with loyalty.
Employee engagement surveys can help you spot the difference. In addition, teach managers to spot the signs of a nester, like an employee who seems happy but turns down new opportunities and challenges.
But once you identify the nesters at your organization, what can you do about them?

3 strategies to address employee nesting
It’s important to approach the phenomenon of nesting with a positive frame of mind. Assume positive intent, and point the finger at yourself first. As a leader, you’re ultimately responsible for employee engagement. Additionally, while it may not be ideal to have nesters in your ranks, it does result in lower employee turnover and frees up HR resources to focus on other priorities.

Take this as an opportunity to invest in improving the employee experience, evolving your workplace culture and doubling down on growth and development. If you do it right, you’ll re-engage some nesters who were content to coast, boosting their productivity and potentially turning their complacency into long-term loyalty.

1. Boost perks and benefits.
With fewer resources aimed towards employee retention, consider offering new benefits or expanding existing programs to cater to employees’ most pressing needs.
Depending on your organization and workforce, that could look like offering childcare support, flexibility in work hours or access to financial wellness tools to help employees save and budget.
Offering the right benefits can build trust with stability-seeking employees to demonstrate you care about them as people and help nudge them into re-engaging with your organization’s mission.

2. Rethink career progression.
Nesters will often turn down raises and promotions, preferring to stay in their current roles. But just because they aren’t climbing the corporate ladder, doesn’t mean they can’t see career growth.
Managers can encourage nesters to approach their everyday work in new and creative ways, or double down on refining important skills they already use regularly. This small stretch may be all an employee needs to realize they are capable of more than they thought.
That’s what happened with one employee I managed, who initially told me they weren’t interested in progressing and simply wanted to continue practicing the skills they were already good at. I showed them how to leverage their existing skills in new projects or demonstrate their mastery in their area to others. They found they were excited to take on opportunities to grow in their current role and quickly changed their perspective.

3. Evolve your company culture to make nesting more difficult. The best way to prevent nesting in the first place is to build a culture that doesn’t leave room for it. Set clear expectations for high performance, and create an environment where everyone is expected to push each other along
It’s hard for nesters to get comfortable and cruise when the default is for everyone on the team to proactively seek new challenges. They simply won’t fit in.
Years ago, a departing employee in an exit interview told me they felt like our organization only praised people who went above and beyond to complete impressive projects. They asked why there wasn’t recognition for those who just “did a good day’s work.” The employee meant it as a criticism, but I saw it differently. Our culture of valuing high achievement had done its job, and an employee who just wanted to nest had felt pressure to move on.

From nesting to true loyalty
Employee nesting might be trending today, but it’s also a behavior that’s been around a long time. There have always been employees who prioritize complacency over growth. If you invest in competitive benefits and build a culture where challenge is a default — even for employees staying in the same position — you’ll nest-proof your organization not only now, but well into the future.

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ABOUT THE AUTHOR

Kristen McGill

Chief People Officer at ZayZoon

Kristen McGill is the Chief People Officer at ZayZoon, with nearly six years of experience at the company. Since February 2024, she has been instrumental in shaping the company’s People & Culture strategy, implementing a 12-quarter roadmap that aligns performance management with career development and drives a high-performance culture. Kristen has also led a refresh of the total compensation strategy, rolled out a performance bonus program, and built an internal recruitment function to support the company’s rapid growth.

Before her current role, Kristen served as ZayZoon’s Chief Operating Officer from January 2020 to January 2024. She was a key player in scaling the company from start-up to Series B+, building multiple departments, and overseeing critical HR and IT system implementations. Kristen’s leadership has been pivotal in fostering company-wide buy-in and operational excellence.

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