Quit rates have fallen again as more employees say they are satisfied in their current roles, iHire reported in its latest Annual Talent Retention Report. The findings suggest that rising job satisfaction, rather than pessimism about external opportunities, is keeping workers in place.
The report said 35.9% of employees resigned over the past year, down from 38.5% in the 2024 survey and well below the 43.3% recorded in 2023. The trend aligns with other recent research indicating workers are more likely to stay put. But iHire found that satisfaction, not caution, is driving the shift. The report said 56.3% of respondents were “very” or “somewhat” satisfied with their current or most recent job, up from 54.8% a year earlier.
iHire chief executive Steve Flook warned, however, that employers should resist reading the data as a sign of lasting loyalty. “Our data confirms employees are staying at their jobs longer, but employers shouldn’t get too comfortable,” he said. He added that if the labour market strengthens in 2026, job huggers could quickly become job hoppers, even among workers who currently seem content.
The report highlighted a persistent misalignment between why employees say they leave and what employers believe drives turnover. Toxic work environments and weak company leadership emerged as the top reasons for employees’ departures. Employers, by contrast, cited personal issues and external job offers as the primary causes. The report said the gap reflected “an ongoing disconnect” that companies must address through more honest feedback channels.
Employees identified health insurance and retirement plans as the most significant benefits keeping them in their roles, at 68.4% and 59.4% respectively. They also pointed to mental health programmes, wellness schemes, transport benefits and home office stipends as important retention supports.
Career development remained another decisive factor. Access to professional development influenced loyalty for 57.4% of respondents, followed by clear advancement paths, meaningful recognition, cross-training and regular performance feedback. Tuition reimbursement and AI-related training were also cited as retention drivers.
Flook said employers would need to maintain their focus on culture, flexibility and growth opportunities to retain workers if market conditions shift. The data, he said, underscores the importance of “nurturing inclusive cultures, offering flexibility, providing growth opportunities, and regularly gathering and acting on associate feedback” as competition for talent evolves.