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- Last Updated: December 03, 2024
Talent Retention Report 2024
Introduction
The cooling labor market has ushered in a new era for employment: the Great Stay. After two years of employees leaving jobs in record numbers – a time period now infamously known as the Great Resignation – workers are opting to stick with their current employers instead of job-hopping or searching for greener pastures.
We began to see the Great Stay emerge as a retention trend in 2023 and continue through 2024. According to the Bureau of Labor Statistics (BLS), the U.S. quits rate (the number of quits during the month as a percent of employment) hit an all-time average high of 2.8% in 2022, then fell to 2.4% in 2023. This year, the quits rate has continued to decrease, reaching 1.9% in August 2024 and averaging 2.1%. But does iHire’s research back those numbers?
Our Sixth Annual Talent Retention Report sheds new light on the Great Stay, analyzing the results of our survey of 1,544 candidates and 555 employers from 57 industries across the U.S. This 2024 report delves into:
- Employee turnover in 2024 – is the Great Resignation over for good?
- Why people quit their jobs this past year
- Job satisfaction levels
- Anticipated retention trends for the coming year
- Advice for how to improve retention and reduce employee turnover
- Plus, many more fascinating employee retention statistics
Voluntary Quits
iHire’s survey suggested voluntary quits – when employees choose to leave their jobs as opposed to being fired or laid off – decreased 11.1% year-over-year. Specifically, 38.5% of workers said they had quit a job in the past year (Figure 1), compared to 43.3% who said the same in 2023’s Talent Retention survey.
For the employers’ point of view, we asked if respondents had experienced any turnover at their company in the past year (voluntary and involuntary quits). 84.9% said “yes” – down a single percentage point from 2023’s survey (Figure 2).
However, 67.3% of the employers who had experienced turnover said “all” or “most” of it was due to voluntary quits or resignations (Figure 3). That’s an 8.2% decrease from 2023’s survey when 73.3% of employers said the same about their voluntary turnover.
Have you left a job voluntarily in the past year? Figure 1
Have you experienced any employee turnover in the past year? Figure 2
How much turnover was due to voluntary quits or resignations, not layoffs or terminations? Figure 3
Why Employees Leave
We continued our survey by asking candidate respondents who had quit a job in the past year why they chose to leave. The top reason, selected by 32.4% of that cohort, was a toxic or negative work environment, followed by poor company leadership (30.3%), and unhappiness with one’s manager or supervisor (27.7%) (Figure 4).
With unsatisfactory pay coming in sixth on the list (20.5%), just behind poor work/life balance (20.8%), it is evident that employees often value a positive work environment, strong leadership, and good relationship with their managers over pay.
Why did you leave your last job voluntarily? (Select all that apply.) Figure 4
*Other responses included lack of hours, retirement, contract ended, discrimination, moved/relocated, long commute, and returning to school.
iHire then asked employers who had experienced turnover a similar question, What reasons have your employees given for leaving their jobs in the past year?, and offered a list of reasons paralleling candidates’ response options.
According to employers, personal reasons (51.4%), an offer that better aligned with one’s career goals (42.0%), and unsatisfactory pay (36.3%) were the three most common reasons provided by departing staff members (Figure 5).
Notably, the chief reasons employees said they left their jobs landed further down the list – for example, only 15.3% of employers said they lost staff due to toxic work environments, which was the most popular reason for leaving a job according to employee respondents.
What reasons have your employees given for leaving their jobs in the past year? (Select all that apply.) Figure 5
*Other responses included long commute, continuing education, and retirement.
Job Satisfaction
Job satisfaction was steady year-over-year – another indication of workers’ desire to stay put. In 2024, 54.8% of candidates iHire surveyed said they were either “very satisfied” or “somewhat satisfied” with their current or most recent job; in 2023, 56.3% of workers said the same (Figure 6).
Think about your current or most recent job. Rate your level of job satisfaction (how happy you are/were) with that job. Figure 6
Why Employees Stay
In the next section of our survey, we aimed to find out what makes workers want to stay with an employer – what perks do they value regarding benefits, career growth, workplace culture, and flexibility?
Benefits
When asked to select which benefits would hypothetically increase the likelihood of an employer retaining them, respondents chose health insurance (68.1%) and 401(k) options/retirement plan (59.9%) as their top answers (Figure 7). Less traditional perks, including mental health benefits (28.4%) and wellness programs (27.5%), followed.
An employer is more likely to retain me as an employee if they offer the following benefits: (Select all that apply.) Figure 7
*Other responses included bonuses, student loan assistance, and paid vacation and holidays off.
Career Growth
As for career growth support, a majority of respondents wanted access to professional development opportunities (60.6%) and clear paths to advancement or promotion (56.3%) (Figure 8). Over half (53.4%) valued meaningful recognition, and 47.2% appreciated cross-training opportunities to learn skills outside their typical role or department.
An employer is more likely to retain me as an employee if they support my career growth through the following: (Select all that apply.) Figure 8
*Other responses included autonomy/no micromanagement, bonus for achievements, and incentives.
Workplace Culture
In line with the top reason candidates gave for leaving jobs voluntarily – toxic work environments (Figure 4) – 83.4% of workers said they would be more likely to stay with an organization if it provided a positive work environment (Figure 9).
Another large portion of candidates (68.1%) highly valued a company committed to a healthy work/life balance, and nearly half (48.7%) said they were more likely to stay with a company whose mission, vision, and values aligned with their own.
An employer is more likely to retain me as an employee if their company culture offers the following: Figure 9
*Other responses included honesty, fairness, responsiveness, communication, and clear expectations.
Flexibility
More than half (54.7%) of candidates said an employer would be more likely to retain them if they offered flex time – the ability to vary their workday’s start and end times (Figure 10). And, while four-day workweeks have been somewhat controversial, 44.4% of employees favored them as a retention incentive.
An employer is more likely to retain me as an employee if they offer the following types of flexibility: (Select all that apply.) Figure 10
*Other responses included set own schedule, more overtime, vacation and sick pay, and part-time options.
Perks Versus Pay
To wrap up this survey section, we asked candidates to identify which perks would lead them to accept a job for a lower salary. Over half (50.9%) of workers (Figure 11) said they would take a job with lower pay if the employer provided a better work/life balance, and 44.6% said the same about a better work environment or company culture.
I would take a job for a lower salary if an employer offered ______________. (Select all that apply.) Figure 11
Employers’ Retention Efforts
We’ve identified reasons employees would stay with a job – with a positive work environment, work/life balance, health insurance, professional development opportunities, and retirement plans ranking among the most popular responses, but are employers delivering on these wants?
When employers were asked which initiatives they’ve taken in the past year to improve retention, giving pay raises was by far the top response, selected by 61.8% of respondents (Figure 12). Giving bonuses ranked second on the list (36.3%), followed by allowing for more flexibility (34.7%).
Interestingly, the employers who gave pay raises still struggled with retention – 90.4% of that group experienced turnover in 2024, and 66.4% said “all” or “most” was due to voluntary resignations.
Nevertheless, in 2024, plenty of employers tried a wide range of retention tactics – from providing more growth (28.9%) and professional development opportunities (28.0%) to expanding their wellness benefits (17.2%). However, 10.7% said they did “nothing” to improve employee retention.
What have you done in the past year to help improve retention? (Select all that apply.) Figure 12
*Other responses included added tuition assistance program, changed leadership/managers, trained managers on retention strategies, and held more frequent check-ins with employees.
Looking Back: Retention Trends for 2024
Which other retention trends marked 2024? To find out, we asked employees and employers to select which behaviors they had exhibited or experienced in the past year.
On the employee side, nearly a quarter (23.1%) of respondents had searched for a new job while “on the clock” at their current job (Figure 13). Also of note, only 15.5% chose to stay with their employer after receiving another offer, and 7.5% left their job for a role with less pay, suggesting employees won’t hesitate to explore greener pastures if they find a more fulfilling gig.
In the past year, I have ______________. (Select all that apply.) Figure 13
For employers, lost productivity due to turnover (34.7%) was a common experience in 2024, while over a quarter of organizations (25.5%) experienced a decline in employee engagement (Figure 14) – these are two issues that can directly impact one’s bottom line.
Additionally, only 17.2% of employers conducted “stay” interviews to ask existing employees why they choose to remain with them, meaning a majority of employers might be missing out on valuable constructive feedback that could raise retention rates.
In the past year, my company has ______________. (Select all that apply.) Figure 14
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Looking Forward – What’s Next for Talent Retention?
Moving into 2025, the big question is, will the Great Resignation return, or is the Great Stay here to... stay? According to our survey, 72.8% of employers believe turnover will either stay the same or decrease at their organization within the next three months (Figure 15).
In the next three (3) months, you expect turnover at your organization to: Figure 15
On the other hand, candidates who were currently employed gave mixed responses when asked how long they expected to stay with their employer. The largest proportion of candidates (30.2%) said they were unsure of their anticipated tenure; 27.9% expected to stay less than six more months, and 26.5% plan to stay more than one year.
How much longer do you expect to stay with your current employer? Figure 16
AI and Turnover
To conclude our survey, we asked candidates about their concerns around artificial intelligence (AI) replacing their role – another rising trend tied to talent retention. 13.3% of employees were “extremely concerned” or “very concerned,” while over half (55.6%) said they were “not at all concerned” that AI would replace their jobs in the next five years (Figure 17).
For some solace, a mere 4.2% of employers said they had replaced or considered replacing an employee’s role with an AI tool in the past year (Figure 14).
How concerned are you that your job will be replaced by AI in the next five years? Figure 17
How to Retain Employees: 8 Takeaways for Preventing Turnover
Based on our survey data and employee retention statistics, the following are actionable retention strategies for employers to keep top talent engaged and loyal.
1. Start from the top down.
As the saying goes, “People don’t leave jobs, they leave managers.” iHire’s report showed that this adage holds true: Poor company leadership and unhappiness with one’s manager or supervisor were among the top three reasons employees left their jobs in the past year.
To retain your employees, ensure leaders are setting an example by being transparent, compassionate, and fair, making employees feel valued, secure, and motivated to stay. Encourage one-on-one meetings between managers and their teams to open lines of communication and build trust. You may also provide training in areas where your managers or leaders fall short, and, if needed, rearrange team structures.
2. Prioritize work/life balance and flexibility.
According to our survey, 50.9% of workers would accept a job for a lower salary if it meant achieving a better work/life balance, and 40.8% said the same about flexibility. Additionally, 20.8% of candidates who quit a job in the past year said a poor work/life balance was to blame.
To boost retention, ensure you are offering employees enough flexibility – such as flex time or hybrid work options – and support their needs in both their personal and professional lives. Mental health benefits, such as employee assistance programs and mental health days off, can also help in this area and were deemed important for retention by 28.4% of candidate respondents.
3. Foster a positive environment and inclusive culture.
A toxic work environment was the most common reason employees left jobs in 2024. Furthermore, 44.6% of respondents said they would take a job for a lower salary in exchange for a better work environment or culture. Therefore, think of a supportive, inclusive work culture as a powerful retention tool. Hone that culture by encouraging collaboration, celebrating diversity, and regularly recognizing and rewarding employees for their achievements.
Team-building activities, meaningful projects, and social events can deepen connections and improve morale, making associates feel like they belong and want to stay with you. When in doubt, lean on your company’s core values to guide you on ways to best enhance your organization’s culture and work environment.
4. Offer advancement and growth opportunities.
When employees feel stagnate or stuck in their roles with no room to grow, they’re more likely to look for work elsewhere. In fact, 18.3% of employees who recently left a job quit due to a lack of professional development opportunities, and 15.0% departed due to a lack of growth opportunities.
Raise staff retention rates by investing in your team’s professional and personal growth. Prevent stagnation by offering personal and professional development. Provide training, cross-training, mentorships, and clear career advancement paths to help employees grow within the organization, keeping them motivated and engaged.
5. Conduct stay interviews regularly.
Only 17.6% of employers surveyed said they had held stay interviews – brief meetings with current employees on why they choose to remain with you – in the past year. Stay interviews are a proactive way to gather feedback from employees before problems escalate.
By understanding their concerns and addressing them early, you can retain workers and make necessary adjustments to keep associates satisfied. Similarly, monthly anonymous “pulse” surveys that gather quick and candid feedback from employees are excellent retention tools and give staff a chance to sound off in a safe space.
6. Empower employees to use AI and new technologies.
13.3% of employees surveyed were “extremely concerned” or “very concerned” that AI could replace their role in the next five years. Ease those fears – and thereby increase retention, as those concerns may drive them to search for work elsewhere – by training staff and equipping them with AI tools and other emerging technologies to make them more efficient. Be clear that these tools are there to support – not replace – them, which can alleviate apprehensions about job security and enhance productivity. (And, don’t forget to create and enforce an AI policy!)
7. Encourage transparency for honest feedback.
iHire’s survey showed discrepancies in the reasons employees give their employers for leaving and their actual motivations for quitting. For example, employers surveyed said “personal reasons” were the most common explanation given by departing employees. Meanwhile, employees surveyed claimed toxic work environments and poor leadership were their reasons for leaving.
If employees aren’t being truthful, employers will not receive actionable feedback to prevent future talent turnover. Therefore, cultivate a transparent environment where employees feel comfortable sharing their thoughts – not only in exit interviews, but anytime.
8. Don’t rely solely on salary as a retention tool.
Pay raises and bonuses were the top two tactics employers implemented in the past year to increase retention. Yes, competitive pay is vital, but it shouldn’t be the only strategy for keeping turnover at bay. As iHire’s survey demonstrated, nonmonetary factors including flexibility and positive work environments greatly influence an employee’s likelihood to stay with you for the long run.
Conclusion
The Great Stay is here, but it will only do just that – stay – if employers pay attention to what their people truly want in a job. Unsatisfactory pay is not always the culprit for turnover; a positive environment, strong work/life balance, inclusive company culture, growth and advancement opportunities, and trusting and transparent relationships with management can be just as, if not more, effective retention tools than pay. When those elements (and many more) support a rewarding work experience, employee engagement, productivity, and innovation rise and make your organization competitive, no matter if the next Great Resignation is around the corner.
Appendices
Candidate Survey Respondent Demographics
The following are breakdowns of candidate respondents’ employment statuses and tenures.
Employment Status Figure 18
Length of Tenure With Current Employer Figure 19
Related iHire Resources
- 2023 Talent Retention Report
- Engagement and Retention Resource Library
- 2024 State of Online Recruiting Report
- Reports & Research Library
- Hiring Solutions
- Employer Webinars & HR Training
Research Methodology
A total of 2,099 U.S. job seekers (1,544) and employers (555) from 57 industries responded to iHire’s Talent Retention Survey in September and October 2024 via the Qualtrics XM platform. Respondents came from iHire’s job seeker and employer databases. All decimal points are rounded to the nearest tenth. For many questions, multiple answers could be selected, so percentages add up to a sum greater than 100%. In some instances, survey questions were skipped by an individual respondent.
About iHire
iHire is a leading employment platform that powers a family of 57 industry-focused talent networks, including WorkInSports, iHireVeterinary, iHireDental, iHireConstruction, and iHireChefs. For more than 20 years, iHire has combined advanced job matching technology with our expertise in the talent acquisition space to connect job seekers with employers in their desired sector. With an industry-specific, candidate-centric, and data-driven approach to recruitment, iHire helps candidates find meaningful work and employers find unique, high-quality talent – faster, easier, and more effectively than a general job board. Visit www.iHire.com for more information.
