iHire today released its 7th Annual Talent Retention Report, revealing that voluntary quits declined for the second consecutive year. However, employees are staying put – or job hugging – not necessarily out of caution in a slowed labor market, but due to higher job satisfaction rates.
Specifically, 35.9% of workers surveyed said they quit a job in the past year, down from 38.5% in 2024’s Talent Retention Survey, and 43.3% in 2023 – a two-year drop of 17.1%. At the same time, job satisfaction rose slightly year-over-year: 56.3% of workers reported being “very satisfied” or “somewhat satisfied” with their current or most recent job (up from 54.8% in 2024).
And, of the candidates surveyed who said they were not actively looking for a new job, 45.5% said they were sticking around out of happiness with their role, compared to 15.6% who said it was “too risky” to look for another job in this economy.
Other notable findings on employee turnover, engagement, and job satisfaction from iHire’s survey of 1,185 U.S. workers and 210 employers from 57 industries include the following:
- Toxic workplaces are the top driver of quits for two years running: 26.8% of employees who left jobs in 2025 resigned due to a toxic work environment, followed by poor company leadership (24.2%) and unhappiness with their manager (22.8%). Still, fewer workers left jobs due to burnout, poor work/life balance, and unsatisfactory pay than in 2024, suggesting employers are making headway in their retention efforts.
- Belonging drives satisfaction: 30.4% of workers didn’t feel a sense of belonging at their current or most recent job; of that group, 57.2% reported dissatisfaction with their job.
- Involuntary separations played a key role in workforce churn in 2025 – but employers aren’t rushing to replace staff members: 19.5% of employers conducted layoffs and 54.8% fired or terminated employees this year. However, 44.3% of employers did not backfill a position left by a departing associate in 2025.
- Retention hinges on fundamentals: A positive work environment (81.5%), health insurance (68.4%), work/life balance (63.9%), retirement benefits (59.4%), and professional development opportunities (57.4%) were the top five factors keeping employees on board.
- Pay raises aren’t always enough: Nearly 20% of employers said they gave raises to prevent resignations in 2025, but the employee(s) left anyway.
“Our data confirms employees are staying at their jobs longer, but employers shouldn’t get too comfortable,” said Steve Flook, iHire’s President and CEO. “If the labor market heats up in 2026, job huggers might quickly become job hoppers, and even the most seemingly satisfied workers could be eyeing new opportunities. Employers must continue focusing on their retention and engagement efforts, including nurturing inclusive cultures, offering flexibility, providing growth opportunities, and regularly gathering and acting on associate feedback.”
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