iHire’s 2024 Talent Retention Report reveals compelling insights into employee retention, turnover, and job satisfaction across 57 industries. Surveying over 2,000 U.S. workers and employers, the report reflects a shift toward retention in what’s being called “The Great Stay.” With an 11.1% decrease in voluntary quits, the report highlights the evolving priorities of both employers and employees and sheds light on what truly drives engagement and satisfaction in the workplace.
- Turnover Trends: “The Great Stay” Over “The Great Resignation”
- Voluntary quits fell by 11.1% year-over-year, with 38.5% of workers leaving jobs in 2024 versus 43.3% in 2023.
- Employers report an 8.2% decrease in turnover attributed to voluntary quits, suggesting improved retention efforts.
- 72.8% of employers anticipate stable or decreased turnover over the next three months, indicating a shift towards sustained employee loyalty.
- Employee Concerns About AI’s Impact on Job Security
- 13.3% of employees are highly concerned AI could replace their role within five years, and 31.1% are somewhat concerned.
- Despite these concerns, only 4.2% of employers have considered using AI to replace roles, highlighting a gap between employee anxieties and actual employer actions.
- Toxic Work Environments and Leadership Issues as Top Quit Drivers
- Toxic culture (32.4%), poor leadership (30.3%), and dissatisfaction with managers (27.7%) are the primary reasons for employee quits.
- Exit interviews reveal a disconnect, as departing employees often cite personal reasons or career alignment rather than cultural or leadership issues.
- This discrepancy suggests the need for improved transparency and genuine exit feedback mechanisms.
- Work-Life Balance Over Pay: Employee Priorities
- 50.9% of employees would consider lower pay for better work-life balance, and 40.8% would for increased flexibility.
- Work-life balance (68.1%) and flexible work options like flex time (54.7%) and four-day workweeks (44.4%) are major factors in employee retention, often outweighing salary concerns.
- Unsatisfactory pay ranked sixth in reasons for leaving, underscoring employees’ growing emphasis on work-life quality over compensation.
- Employer Retention Tactics Beyond Pay
- Though 61.8% of employers used pay raises as a retention strategy, 90.4% still faced turnover, with 66.4% due to voluntary resignations.
- To retain talent, employers are encouraged to promote positive work environments, supportive cultures, and opportunities for work-life balance.
- According to Steve Flook, iHire President and CEO, companies that prioritize these factors over pay alone can achieve a competitive advantage in employee engagement and loyalty.
The 2024 Talent Retention Report from iHire underscores a workplace evolution where work-life balance, cultural fit, and strong leadership are critical to retaining talent. As voluntary turnover declines, employers are urged to focus on these factors to foster long-term engagement and satisfaction. By addressing what truly matters to today’s workforce, companies can secure a dedicated, productive workforce amid “The Great Stay.”
