Call it the great stay — the evolving talent market that has employees sitting tight. Quit rates have ebbed; job openings are down; uncertainty is fueling employees to “job hug” and stay in place. 
For employers with vivid memories of the great resignation, the retention may feel like a relief. But it comes with a catch. People who feel stuck can generate a different kind of resignation, the kind where they stay only because they have to. It’s not a recipe for engagement, and it’s one reason experts call now a critical time to stay tuned into the workforce. 

“Today’s labor market is unfolding alongside a broader demographic shift, with an aging population and looming labor shortages,” says Matt Nestler, Senior Economist, KPMG Economics. “Employers can position themselves as preferred workplaces by proactively meeting employee needs today and over the next three to five years.”

How do employers position themselves as those preferred workplaces? We talked to Matt and other experts about 2026 trends in talent. Here’s what they had to say. 

Matt Nestler, Senior Economist, KPMG Economics: “A culture that values caregiving.”

Even in a soft talent market, top employees will always have choices. But employers aren’t just competing with other jobs; they’re also competing with family stresses that can drive key talent — especially college-educated mothers and other future leaders — out of the workforce completely. 

“The retreat of key talent is not inevitable,” says KPMG’s Matt Nestler. “It can just as easily be reversed. Employers can start by identifying which employees are at risk of leaving and then develop targeted strategies based on direct feedback from employees. Top of the list for college-educated mothers of young children include flexible work arrangements, backup dependent care, and training managers to foster a culture that values caregiving.”

Ed Lehman, US Health and Benefits Leader at Mercer: “Balancing care for both children and aging parents.”

Child care shortages are clear obstacles to job performances. But it’s just one, evidenced by Gen Zs who are already joining the sandwich generation, and 40-year-old Millennials becoming parents for the first time. It means caregiving affects every employee you have, and demands strategies that ensure all of them — across generations, roles, and life stages — feel seen. 

“As employers plan for 2026, they are increasingly focused on supporting the growing population of working caregivers, including the sandwich generation, who are balancing care for both children and aging parents,” says Mercer’s Ed Lehman. “Mercer’s 2025 Health on Demand Report shows that over half of employees are caregivers facing significant stress and financial concerns, prompting employers to adopt flexible work arrangements, targeted benefits, and peer support networks. This holistic approach helps support caregivers across generations and life stages with access to the resources they need to thrive both at work and home.”

Veronica Segovia Bedon, Caregiving Program Management Director at AARP: “It’s smart business.” 

Caregivers without help fuel millions of lost and shortened workdays, says AARP, costing employers and busting the myth that people have whole villages to tap into. The combination makes a clear case for employers, says Veronica Segovia Bedon, Caregiving Program Management Director at AARP.  

“Supporting employees without a strong care network isn’t just compassionate, it’s smart business,” she says. “Practical supports like navigation tools, peer networks, caregiver-friendly policies, and paid caregiver leave reduce absenteeism and turnover, while strengthening operations.”

Aaron Merchen, Executive Director, Early Childhood Education Programs, U.S. Chamber of Commerce Foundation: “Abundant clarity on the importance of care”

Tightened budgets and increased healthcare costs have employers seeking benefits that have real impact. As bottom-line pressures mount, says the U.S. Chamber of Commerce’s Aaron Merchen, caregiving will move from the “nice-to-have” to the “must-have” column. 

“In the last year, we have seen from business leaders and decision makers a deepened understanding on the important role care plays in fortifying communities, strengthening economies, and creating possibilities,” says Aaron, who expects a focus on Millennial and Gen Z expectations and sandwich-generation challenges to lead the charge. “I see an environment where in 2026, the abundant clarity on the importance of care must lead to an increased prioritization and investment in care supports for children and the elderly alike, and investment and support of the crucial workforce providing that care.” 

An edge for organizations

What does all of this mean for employers? The positive interpretation is opportunity. “If you look at companies that are consistently on employees’ job wish lists,” says Bright Horizons CEO Stephen Kramer, “you’ll see something they have in common — namely employees who talk about feeling backed-up by the people they work for. Show that you’re ahead of that curve now, and you’ll have employees who are loyal in any talent market.” 

In practice, those companies’ approaches read like a step-by-step instruction manual: 

Know your people. Understand, via regular surveys, who works for you and the pressure points that drive them to miss work — or find another job.

Address the trouble spots. If summer is leaving a hole in working parents’ productivity, explore that. Be creative and look for answers — such as in-office summer camp — that set you apart.

Make it easy to access. Caregiving isn’t one-size-fits all. But a solid provider should be able to offer all of your employees something that fits — giving people one platform with a common reservation/payment system for everything they need. 

Ensure you’re getting real value. ROI comes not from the promise of care — but the delivery of it. It’s why DIY platforms alone can fall flat. Ask yourself: is care easy and quick to reserve? Are they providers people will feel good about? Is the online platform backed up by real people like a concierge who will do the work of finding care for people? Answering “no” to any one of those questions means you’re likely investing in help that’s in name only. 

Stephen says the strategy you choose is more than just about today’s productivity. The talent pendulum is always swinging. But the next swing promises to be dramatic and long-lasting — an aging population with fewer working-age people to compete for that will put workers in the driver’s seat for a long time. “When the pendulum shifts next” says Stephen, “people are going to remember the cultures that stayed constant.” 

Related resources: The Great Exit: College-educated mothers of young children leaving the workforce, Mercer’s 2025 Health on Demand, AARP’s Free Online Manager Training