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- Last Updated: November 19, 2025
Talent Retention Report 2025
7th Annual Edition
The labor market continues to present new challenges for employers. Unemployment rates have remained low, but hiring momentum and employment growth have slowed. At the same time, the U.S. Bureau of Labor Statistics JOLTS data shows quit rates have stabilized, and the “Great Stay” that materialized in 2024 has held strong.
However, industry experts believe employees are now staying in their roles more out of caution amid economic uncertainty than genuine loyalty to their employer. Often called “job hugging,” this trend may lead to a workforce that is present, but not necessarily productive or engaged. But how much of this speculation is true, and how should employers approach talent retention and engagement moving forward?
To help you understand the key drivers behind employee retention and satisfaction, we surveyed 1,185 U.S. job seekers and 210 employers from 57 industries. Our 7th Annual Talent Retention Report analyzes the results of the survey to uncover what matters to today’s workforce, detailing HR and hiring trends such as:
- Why people quit their jobs in 2025
- Which benefits and perks increase retention rates
- How job satisfaction and belonging have evolved
- How AI is impacting retention
- What employers are doing to tackle turnover
- How to retain employees
- … And more employee retention statistics
Executive Summary
iHire’s survey data showed that voluntary quits declined in 2025, suggesting that employees may be staying put longer – or job hugging – due to economic uncertainty and labor market volatility. Specifically, 35.9% of workers quit a job in the past year, down from 38.5% in 2024 and 43.3% in 2023 – a two-year drop of nearly 17.1%. Meanwhile, involuntary separations played a major role in workforce churn, with 19.5% of employers laying off employees, and 54.8% firing or terminating staff.
Job Satisfaction Levels Are Rising
Job market unpredictability may not be the only reason employees are choosing to stay. Our survey showed a slight year-over-year increase in job satisfaction, with 56.3% of respondents reporting being satisfied with their current or most recent job (up from 54.8% in 2024). More telling, perhaps, is that of respondents who were not looking for a new job, 45.5% said they were sticking around because they were happy with their current job, versus 15.6% who said it was “too risky” to look for another job in this economy.
The uptick in satisfaction could even signal that employers are getting better at listening to their workforce and delivering on what employees need to thrive. To that point, fewer people quit jobs in 2025 because of a poor work/life balance, burnout/stress, and unsatisfactory pay than in 2024. At the same time, employers reported allowing for more flexibility and providing more growth, advancement, and professional development opportunities this year to improve retention. Still, there is work to be done to keep teams productive and loyal.
Toxic Work Environments and Issues With Company Leadership Continue Driving Quits
Even as quits slowed, the reasons employees left their jobs did not change dramatically year over year. Toxic work environments, poor company leadership, and unhappiness with managers topped the list. Yet employers perceived the drivers for employees leaving their jobs differently, noting that “personal reasons” or better job offers were the top catalysts of turnover as reported by their departing associates. This reveals an ongoing disconnect between what employees tell management and the actual reasons they leave.
Continuing to gather honest feedback from staff will prove invaluable in building a culture of trust and transparency that supports retention. Nevertheless, just 30.5% of employers regularly conduct stay interviews (asking current employees why they choose to stay at their jobs), and 68.1% conduct exit interviews.
Retention Begins With the Fundamentals
Our survey also showed that retention continues to hinge on fundamentals: A positive work environment (which a whopping 81.5% of workers said increases the likelihood of them staying at a job), health insurance, strong work/life balance, retirement benefits, and professional development opportunities were top factors keeping employees on board. Flexibility also plays a major role – more than half of workers said flex time, four-day workweeks, or hybrid options would make them stay.
Furthermore, iHire’s research uncovered a strong link between belonging and satisfaction: 57.2% of workers who don’t feel a sense of belonging and inclusion were dissatisfied with their jobs. This finding emphasizes the growing importance of fostering inclusive cultures and positive work environments to retain talent.
Ultimately, the data shows that retaining and engaging employees in 2026 requires a holistic approach. Addressing the root causes of disengagement – poor culture, lack of growth, and perceived instability – is often more effective than relying on pay raises alone. In fact, 19.5% of employers said they gave a pay raise in the past year in an attempt to keep an employee from leaving, but it did not work. Therefore, focusing on the core pillars of a rewarding employee experience and listening to associates are key to turning a workforce of job huggers into a genuinely committed and productive team.
Voluntary Quits in 2025
Gone are the days of the Great Resignation; voluntary quits – when employees choose to leave their jobs, versus being fired or laid off – are declining. iHire’s survey showed that 35.9% of workers quit jobs in the past year (Figure 1), compared to 38.5% who said the same in 2024’s Talent Retention Survey and 43.3% in 2023’s. That’s a 6.8% year-over-year decrease, and a 17.1% two-year decrease.
Have you left a job voluntarily in the past year? Figure 1
On the other hand, employers surveyed reported a 4.4% year-over-year increase in turnover, with 88.6% of respondents experiencing employee departures in 2025 (Figure 2), and 84.9% in 2024. However, that percentage takes into account turnover of any kind, including layoffs and terminations.
Have you experienced any employee turnover in the past year? Figure 2
Looking specifically at voluntary quits, 63.4% of employers said “all” or “most” of their turnover in 2025 was due to resignations – a decrease from 67.3% in 2024 (Figure 3). Therefore, the slight increase in turnover is likely due to an uptick in layoffs and terminations in 2025. In fact, 19.5% of employers said they laid off an employee or employees, and 54.8% said they fired or terminated someone in 2025 (Figure 18).
How much turnover was due to voluntary quits or resignations, not layoffs or terminations? Figure 3
| 2025 | 2024 | |
|---|---|---|
| All | 24.2% | 30.1% |
| Most | 39.2% | 37.2% |
| Some | 33.3% | 29.1% |
| None | 3.2% | 3.6% |
Why People Quit Their Jobs
While quit rates are down, the top reasons people left their jobs in 2025 were similar to those given in 2024’s Talent Retention Survey. In 2025, more than a quarter (26.8%) of employees left a job due to a toxic or negative work environment, followed by 24.2% who departed due to poor company leadership, and 22.8% who quit because they were unhappy with their manager or supervisor (Figure 4).
However, in 2025, the “Other” option was the number one response (compared to number four in 2024), with respondents writing in an array of reasons they quit jobs, including retirement, relocation, and career change. Also of note, fewer people quit jobs because of poor work/life balance (15.5%), burnout/stress (15.1%), and unsatisfactory pay (15.1%) in 2025, while more workers quit because of a lack of growth opportunities (18.8%) and concerns about job security (14.6%) than in 2024.
Why did you leave your last job voluntarily? (Select all that apply.) Figure 4
| 2025 | 2024 | |
|---|---|---|
| Other* | 27.5% | 21.7% |
| Toxic or negative work environment | 26.8% | 32.4% |
| Poor company leadership | 24.2% | 30.3% |
| Unhappy with manager/supervisor | 22.8% | 27.7% |
| Lack of growth or advancement opportunities | 18.8% | 15.0% |
| Personal reasons (health, family issues, etc.) | 17.6% | 18.7% |
| Poor work/life balance | 15.5% | 20.8% |
| Unsatisfactory pay | 15.1% | 20.5% |
| Burnout/stress | 15.1% | 19.2% |
| Concerns about job security/company stability | 14.6% | 11.9% |
| My values didn’t align with the employer’s | 14.1% | N/A |
| Lack of professional development opportunities | 12.9% | 18.3% |
| Received an offer for a job that better aligned with my career goals | 9.2% | 12.3% |
| Unsatisfactory benefits | 5.9% | 11.1% |
*Other responses included: contract ended, retired, moved/relocated, company closed, lack of hours, and career change.
Next, we asked employers a parallel question with the same response options we gave candidates: What reasons have your employees given for leaving their jobs in the past year?
The results were akin to those from last year’s survey, with the top three responses comprising personal reasons (48.4%), an offer for a job that better aligned with one’s career goals (42.5%), and unsatisfactory pay (29.0%) (Figure 5). Notably, there is a 7.3 percentage point year-over-year decrease in workers citing salary as their reason for quitting their jobs – just as fewer employees cited salary as a reason for quitting in 2025 than in 2024 (Figure 4).
What reasons have your employees given for leaving their jobs in the past year? (Select all that apply.) Figure 5
| 2025 | 2024 | |
|---|---|---|
| Personal reasons (health, family issues, etc.) | 48.4% | 51.4% |
| Received an offer for a job that better aligned with their career goals | 42.5% | 42.0% |
| Unsatisfactory pay | 29.0% | 36.3% |
| Burnout/stress | 21.5% | 22.1% |
| Unhappy with manager/supervisor | 19.9% | 20.0% |
| Other* | 15.6% | 16.8% |
| Toxic or negative work environment | 13.4% | 15.3% |
| Poor work/life balance | 13.4% | 12.7% |
| Their values didn’t align with the company’s | 11.8% | N/A |
| Lack of growth or advancement opportunities | 10.8% | 11.3% |
| Lack of professional development opportunities | 9.7% | 11.0% |
| Concerns about job security/company stability | 9.7% | 5.5% |
| Poor company leadership | 9.1% | 10.8% |
| Unsatisfactory benefits | 5.4% | 8.9% |
*Other responses included: moved/relocated, career change, wanted to work remotely, and retired.
As with previous years’ Talent Retention Reports, the primary reasons employers said their employees have given for leaving differ from the reasons employees selected from our survey response options. For instance, 26.8% of workers said they left jobs due to a toxic environment, and 24.2% said they quit because of poor company leadership. Yet, 13.4% of employers said departing staff left because of a toxic work environment, and only 9.1% said they lost associates due to poor company leadership.
This misalignment suggests continued transparency and trust issues between employees and employers: Workers aren’t completely honest when telling their employers why they are leaving, often using “personal reasons” or “better job offer” as vague or catch-all justifications. (Disclaimer: Workers surveyed aren’t necessarily employed by the employers surveyed.)
Job Satisfaction Rates
Although job hugging is thought to be on the rise out of necessity instead of sheer happiness with one’s employer, statistics show that job satisfaction is up slightly in 2025. According to our survey, 56.3% of workers expressed that they are “very satisfied” or “somewhat satisfied” with their current or most recent job, compared to 54.8% who said the same in 2024 (Figure 6). Other recent research validates this increase, including The Conference Board’s 2025 Job Satisfaction Survey, which showed the highest level of job satisfaction since the survey’s inception in 1987.
Think about your current or most recent job. Rate your level of job satisfaction: Figure 6
| 2025 | 2024 | |
|---|---|---|
| Very satisfied | 24.2% | 22.6% |
| Somewhat satisfied | 32.1% | 32.2% |
| Neutral – neither satisfied/dissatisfied | 16.2% | 18.7% |
| Somewhat dissatisfied | 14.6% | 15.4% |
| Very dissatisfied | 11.6% | 11.1% |
| N/A - I have never had a job | 1.4% | Not a response option |
But are employers aware of how happy – or unhappy – their employees are with their jobs? When we asked employers how satisfied they believe their workforce is, 79.5% responded with “very satisfied” or “somewhat satisfied” – with most responses falling into the “somewhat” category (Figure 7).
Just 4.0% of employers thought their associates were “somewhat dissatisfied” or “very dissatisfied,” compared to the 26.2% of employee respondents who said the same (Figure 6). Therefore, there’s likely a disconnect between employers’ perception of employee satisfaction and how happy they really are at work, leading to missed opportunities to raise those satisfaction levels to keep top talent aboard.
How satisfied do you believe your employees are with their jobs? Figure 7
The Correlation Between Job Satisfaction & Belonging
New in 2025’s survey, we asked candidates to gauge their sense of belonging and inclusion at work – elements that the HR industry has increasingly designated as keys to job satisfaction and retention. Over half (53.7%) of employees said they felt they belonged at their current or most recent job, while 30.4% were not experiencing that sentiment (Figure 8).
Further, of that 30.4%, 57.2% were “somewhat dissatisfied” or “very dissatisfied” with their jobs, confirming a strong correlation between belonging and happiness at work.
Think about your current or most recent job. Do/did you feel a sense of belonging and inclusion at work? Figure 8
Why People Stay at Their Jobs
When developing a solid talent retention strategy, understanding why employees choose to stay at their jobs is just as critical as determining why people leave their jobs. In this section, we’ll look at which benefits, career growth opportunities, workplace culture attributes, and flexibility perks increase the likelihood that people stick around.
Benefits & Retention
Benefits remain a foundational driver of worker retention, with health insurance (68.4%) and 401(k) or retirement options (59.4%) leading the way (Figure 9). However, employees increasingly expect holistic support – nearly three in 10 (28.5%) cited mental health benefits as a key factor, while others value wellness programs (25.9%), transportation perks (25.1%), and home office stipends (20.1%) that reflect evolving work arrangements.
An employer is more likely to retain me as an employee if they offer the following benefits: (Select all that apply.) Figure 9
*Other responses included: fair salary, flexibility, good management, remote work, and respect.
Career Growth & Retention
Beyond benefits, career growth opportunities strongly influence loyalty. Over half of respondents said they are more likely to stay when employers provide professional development and upskilling (57.4%) and clear advancement paths (54.8%), emphasizing that retention is tied to visible growth potential (Figure 10). Recognition (50.2%) and cross-training (46.0%) also play meaningful roles, showing that employees want to feel both valued and challenged.
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 10
*Other responses included: meaningful work, no micromanagement, and raises.
Workplace Culture & Retention
Culture remains a cornerstone of retention: 81.5% of respondents said a positive work environment is essential to retaining them, while nearly two-thirds emphasized a company’s commitment to work/life balance (63.9%) (Figure 11). Alignment with organizational values, autonomy, and social/team-building activities further contribute to a sense of belonging and purpose.
An employer is more likely to retain me as an employee if their company culture offers the following: (Select all that apply.) Figure 11
*Other responses included: valuing employees, accountability, committed teams, and better management.
Flexibility & Retention
Finally, flexibility continues to shape modern employee retention strategies. More than half of employees (52.6%) want flex time, and substantial portions cited four-day workweeks (42.3%), hybrid (39.3%), and remote work options (38.7%) as factors that make them stay (Figure 12). Together, these insights underscore that today’s employees seek not only fair pay and benefits, but also growth, trust, balance, and flexibility in where and how they work.
An employer is more likely to retain me as an employee if they offer the following types of flexibility: (Select all that apply.) Figure 12
*Other responses included: paid vacation time, part-time options, and overtime pay.
The Top Five Perks That Retain Workers
Looking across all four categories, which elements of the employee experience have the most impact on retention? Here’s the breakdown:
- Positive work environment (81.5%)
- Health insurance (68.4%)
- Commitment to a healthy work/life balance (63.9%)
- 401(k) options/retirement plan (59.4%)
- Professional development/upskilling opportunities (57.4%)
Although modern perks like four-day workweeks and social/team-building activities are on many employees’ wish lists, these survey results suggest employees are most likely to stay where they feel supported, secure, balanced, and able to advance their careers. As a result, retention plans should first and foremost cover these bases before diving into more progressive and creative tactics.
Understanding the Cost of Employee Turnover
What’s the true cost of employee turnover? While some estimates range from half to two times the departing person’s salary, the price tag of replacing a staff member was not the most adverse effect, according to our survey respondents.
While 14.8% said the cost of replacing the employee was the biggest repercussion (Figure 13), 26.7% called out stress/burnout of employees covering for the exiting team member, and 22.4% noted disruption to team dynamics and workflows.
Decreased productivity (9.5%), morale (8.6%), and engagement (4.8%) ranked lower on the list, along with lost revenue/business opportunities (6.2%) and negative impacts on one’s employer brand (4.8%). Nevertheless, all these impacts are a hit to a company in some way, showing just how important it is to keep top talent engaged and aboard.
Which of the following do you believe is the biggest repercussion of employee turnover? (Select one.) Figure 13
How Employers Are Improving Retention
What are today’s employers doing to proactively improve retention and keep current staff engaged and productive? And, do those efforts align with what workers value the most?
We asked employers to identify the single most effective offering in retaining employees, aside from pay and monetary benefits. Flexibility ranked first (21.9%) on the list, showing that organizations are in tune with employees’ desire for a healthy work/life balance, while professional development opportunities ranked second (16.2%) – also in line with what employees want (Figure 14).
Having a mission, vision, and values that resonate with associates was also a top response (15.7%), which can directly impact whether a work environment is positive or negative. But are employees actually implementing the retention and engagement strategies they deem most effective?
Besides pay and monetary benefits, which of these do you believe is most effective in retaining employees? (Select one.) Figure 14
*Other responses included: better training for management, positive work environment, support, and respect.
When we asked employers what they’ve done in the past year to improve retention, we found an alignment and a few gaps between the perks employees say help retain them and the actions employers are taking (Figure 15).
In 2025, employers offered or expanded many of the same opportunities, incentives, and programs as they did in 2024. Over half (55.2%) of employers gave pay raises in 2025 (down from 61.8% who did so in 2024) to increase retention, and 36.7% provided bonuses (up from 36.3% in 2024). While financial stability and competitive pay are factors in retention, those elements are now table stakes in the employee experience and not the sole reasons why employees stay or leave.
In this year’s survey, providing more social/team-building activities was the third most popular retention effort (31.0%), which can contribute to creating a positive environment and culture that workers crave. Organizations have also been addressing flexibility in the workplace, with 30.0% of employers allowing for more flexible schedules and 13.3% offering remote or hybrid work options. While those percentages are down slightly from 2024, it is likely that many employers have already implemented flexibility over the past few years, post-pandemic.
Additionally, roughly 29.0% of employers provided more advancement opportunities, and 26.2% expanded professional development programs this year. Still, the implementation rates for these types of initiatives were relatively flat year-over-year, despite workers’ keen interest in upskilling and career pathing (a lack of growth opportunities was the fifth most common reason people left jobs in 2025).
Lastly, 8.1% of employers said they did nothing to improve staff retention in the past year, which is unsettling, as retention should be an ongoing initiative.
Overall, employers are taking meaningful steps in their retention efforts, but there is still an opportunity to more fully address employees’ desire for growth, flexibility, and support for their professional and personal well-being.
What have you done in the past year to help improve retention? (Select all that apply.) Figure 15
| 2025 | 2024 | |
|---|---|---|
| Given pay raises | 55.2% | 61.8% |
| Given bonuses | 36.7% | 36.3% |
| Provided more social/team-building activities | 31.0% | 25.7% |
| Allowed for more flexible schedules | 30.0% | 34.7% |
| Provided more growth/advancement opportunities | 29.0% | 28.9% |
| Offered/expanded professional development opportunities | 26.2% | 28.0% |
| Given promotions | 25.7% | 26.4% |
| Offered/expanded wellness and/or mental health benefits | 19.5% | 17.2% |
| Offered additional paid time off (PTO) | 17.1% | 18.1% |
| Allowed for remote or hybrid work | 13.3% | 17.4% |
| Offered/expanded Diversity, Equity & Inclusion (DEI) initiatives | 8.1% | 8.9% |
| Other* | 8.1% | 5.2% |
| Nothing | 8.1% | 10.7% |
| Offered/expanded support for parents (on-site childcare, childcare stipends, additional leave, etc.) | 3.8% | 6.7% |
*Other responses included: improved company culture, conducted stay interviews, developed staff retention plan, and provided better training for managers.better training for management, positive work environment, support, and respect.
Employee Feedback & Retention
Along with providing the benefits, perks, and experience that keep employees aboard, regularly soliciting feedback from staff can help proactively identify gaps and fix problems before they escalate.
In addition to pulse surveys, skip-level interviews, and one-on-one meetings, exit interviews (asking departing employees for feedback on their experience working for you), and stay interviews (asking existing employees why they choose to remain with you) are proven ways to gather insights into what’s working – and what’s not – from associates.
We asked our employer respondents whether they use these types of formal interviews as part of their retention strategy and found that a majority of employers (68.1%) conduct exit interviews, but just 30.5% hold stay interviews (Figures 16 and 17).
While exit interviews offer a chance for soon-to-be former employees to weigh in on their time with you, it’s sometimes too late to fix any issues that are driving the person (and potentially more people) out the door. Stay interviews, however, give current employees the opportunity to sound off and allow you to address problems before they affect retention.
Does your company regularly conduct exit interviews? Figure 16
Does your company regularly conduct “stay” interviews? Figure 17
Retention & Engagement Trends to Know For 2026
In this final section, we’ll explore specific trends employers and employees experienced in the past year and look into the future in terms of AI’s impact on talent retention and what companies expect for turnover in the coming months.
Turnover Trends From 2025
Toward the end of our survey, we asked employers to select which trends they had experienced or initiatives they had implemented in 2025 (Figure 18). The following turnover statistics stood out the most:
- 44.3% of employers did not backfill a position left by a departing employee, suggesting that companies are running leaner in the wake of economic uncertainty.
- Over half (54.8%) of organizations fired or terminated an employee, and 19.5% laid off staff members, which could contribute to the lower rate of voluntary departures in 2025. Also, the high percentage of terminations could be due to letting go of disengaged, poor performers who perhaps are doing the bare minimum while job hugging.
- While 34.3% gave a raise to prevent an employee from resigning, and it worked, 19.5% tried to do so, and it did not work, once again suggesting that pay raises aren’t always the silver bullet for retention.
In the past year, my company has _________. (Select all that apply.) Figure 18
Next, we asked employees which trends they experienced in the previous 12 months (Figure 19), and found:
- 13.5% of employees admitted to searching for a new job while “on the clock” at their current job. But, that number is down from 23.1% who said the same in 2024, suggesting less urgency to find a new job and/or a greater tendency to stay put. Or, more employees are realizing that job searching on the clock isn’t such a good idea.
- 9.9% of workers decided to stay with their current employer after receiving an offer elsewhere, echoing the fact that 34.3% of employers gave raises to prevent an employee from resigning, and it worked (Figure 18).
- 13.3% of workers quit jobs before having another lined up – a job search faux pas – but at least very few (2.6%) are quitting without giving their employer ample notice.
In the past year, I have _________. (Select all that apply.) Figure 19
AI & Retention
Given how AI has been infiltrating all aspects of the workplace, we wanted to get a pulse on how this technology is impacting talent retention.
When we asked workers how concerned they are that their job will be replaced by AI in the next three years, the proportion who were “extremely concerned” or “very concerned” rose marginally year-over-year (up from 13.3% to 15.2%) (Figure 20).
Meanwhile, over 52.7% were confident in their job security, saying they were “not at all concerned” – down a notch from 55.6% who said the same in 2024. All in all, concerns about AI and job security have been relatively static over the past two years.
How concerned are you that your job will be replaced by AI in the next three years? Figure 20
| 2025 | 2024 | |
|---|---|---|
| Extremely concerned | 7.6% | 6.8% |
| Very concerned | 7.6% | 6.5% |
| Somewhat concerned | 18.3% | 16.1% |
| Slightly concerned | 13.8% | 15.0% |
| Not at all concerned | 52.7% | 55.6% |
The good news for those who are anxious about AI is that just 5.7% of employers surveyed adopted an AI tool instead of hiring a new employee in 2025, and only 3.3% replaced a departing associate with an AI tool instead of hiring someone new (Figure 18).
In addition, some employers are beginning to use AI to improve their retention efforts and provide a better employee experience – a win-win for everyone (Figure 21). Although the majority of respondents said they were not currently using AI in retention (79.5%), 9.0% were using it to analyze employee engagement data, and 8.1% were using it to personalize learning and career development opportunities.
We anticipate adoption in these use cases growing in the next year, especially as AI adoption in recruiting has jumped 72.6% year-over-year. Retention should follow suit.
How is your company currently using AI to improve retention? (Select all that apply.) Figure 21
*Other responses included: creating training guides, developing job descriptions, and establishing workflows.
Turnover Expectations
Looking forward, most employers anticipate turnover at their company to either stay the same (57.6%) or decrease (20.0%) (Figure 22). Just 13.3% believe turnover will increase in the next three months.
In the next three months, you expect turnover at your organization to: Figure 22
Yet, employers shouldn’t get too comfortable – 82.1% of candidates surveyed said they were currently seeking a new job (Figure 23). Bear in mind that respondents came from iHire’s job seeker database of active users, so they are more likely to be on the hunt for a new opportunity, even passively, compared to a sampling of workers from the general population.
Are you currently seeking a new job? Figure 23
Will Job Hugging Continue?
For more insights into whether people plan to stay at their jobs – and why – in the coming months, we asked candidates who were not searching for a job why they were not pursuing a new gig (Figure 24). Of the 5.3% of non-active job seekers, 15.6% cited economic uncertainty as a reason for staying put.
While market conditions are thought to be the chief motivator for job hugging, more workers in our survey are holding onto their positions out of sheer job satisfaction (45.3%). In addition, 32.8% said they were satisfied with their pay and salary, and 29.7% said they had a great work/life balance.
Why aren’t you looking for a new job? (Select all that apply.) Figure 24
*Other responses included: continuing education/in school and own a business.
How to Retain Employees in 2026
Given the unknowns surrounding the labor market, employers can’t get too comfortable with their talent retention efforts – even if the data shows more workers are choosing to stay in their current jobs.
Our 2025 survey revealed that 82.1% of employees are actively or passively looking for a new job (Figure 23). How can you increase employee retention and ensure top performers remain with you? Use these data-backed strategies to build a more loyal and engaged workforce.
1. Focus on the Basics… Then Expand
Before implementing trendy perks like pet insurance or on-site childcare, make sure you have the fundamentals covered. Our data shows that the top five drivers of retention are a positive work environment (81.5%), health insurance (68.4%), a commitment to work/life balance (63.9%), a 401(k) or retirement plan (59.4%), and professional development opportunities (57.4%).
These results prove that employees prioritize psychological safety, health, financial security, and career growth. While perks like four-day workweeks are appealing, they are less impactful if your foundational offerings are weak. Start by evaluating your core benefits and culture. Are they competitive? Do they meet the needs of your current workforce? Once these pillars are strong, you can explore more progressive benefits to enhance your employer brand.
2. Understand That Pay Raises Aren’t the Magic Retention Solution
While compensation is important, it’s rarely the only reason an employee stays or leaves. In fact, just 15.1% of workers who quit in the past year cited unsatisfactory pay as a reason. Furthermore, while 34.3% of employers successfully used a pay raise to prevent an employee from resigning, another 19.5% tried and failed. This suggests that money can’t fix deeper issues.
Employees are often driven away by a toxic environment (26.8%), poor leadership (24.2%), or a bad manager (22.8%). If an employee is unhappy for these reasons, a bigger paycheck is just a temporary fix. Instead of relying on counteroffers, address the root causes of turnover. Focus on leadership training, improving manager effectiveness, and building a supportive culture where people want to work.
3. Nurture a Positive Work Environment
A positive work environment was the chief factor employees cited for staying with a company (81.5%). This is an area where employer perception and employee reality often diverge. While only 13.4% of employers believed a toxic environment caused turnover, 26.8% of employees said it was the reason they left their last job.
A positive culture is built on trust, respect, and open communication. It’s a place where employees feel valued, their contributions are recognized, and they have a sense of belonging. Our survey confirmed this, showing a strong link between belonging and job satisfaction. Nurturing this environment requires consistent effort, from vetting for cultural fit (or add) during the hiring process to providing managers with the tools to lead with empathy and support.
4. Solicit and Act on Employee Feedback
You can’t fix problems you don’t know exist. Regularly gathering employee feedback is critical for identifying issues before they lead to turnover. Our survey found that while 68.1% of employers conduct exit interviews, only 30.5% conduct stay interviews. This is a missed opportunity. Exit interviews provide hindsight, but stay interviews offer foresight, allowing you to proactively address concerns with current employees.
Beyond formal interviews, create channels for continuous feedback, such as pulse surveys, one-on-one meetings, and anonymous suggestion boxes. The most important step? Act on the feedback you receive. When employees see that their input leads to meaningful change, it builds trust and reinforces their value to the organization.
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5. Eliminate Stagnation by Showing Employees Tangible Growth Opportunities
When thinking about how to prevent turnover, remember that employees will stay with companies where they can see a future. After the core benefits, the desire for professional development (57.4%) and clear advancement paths (54.8%) were two of the strongest retention drivers. In fact, a lack of growth opportunities was among the top reasons people quit their jobs in 2025.
To combat stagnation, invest in your team’s career journeys. Offer access to training, courses, and workshops. Create clear and transparent pathways to promotion. Implement cross-training programs to help employees learn new skills outside their typical roles. When you invest in your employees’ growth, you are also investing in your company’s future and demonstrating a commitment that inspires loyalty.
6. Turn to AI for Help
AI is no longer just a recruiting tool; it’s becoming a valuable asset for retention. Although most employers (79.5%) are not yet using AI for retention, our survey shows companies are utilizing AI to analyze employee engagement data (9.0%), personalize career development (8.1%), and even monitor for burnout risk (5.2%).
As you look toward 2026, consider how AI can help you better understand and support your team. These tools can process vast amounts of data to identify flight risks, suggest internal mobility opportunities, and help you create more effective and personalized employee retention strategies at scale. Starting small with one use case can provide valuable insights and give you a competitive edge in keeping your best talent.
7. Hire the Right Candidates in the First Place
Our last piece of advice for how to increase employee retention is simple: Focus on hiring the right people, and you’ll raise retention and engagement.
Effective retention starts long before an employee’s first day; it begins during recruitment. Clearly define your role requirements in your job descriptions and postings, communicate your culture and expectations transparently, and evaluate candidates for both skills and values alignment. When job seekers understand what success looks like in your organization and feel a connection to your mission, they’re more likely to stay and thrive.
Additionally, use behavioral interviews, skills assessments, and job shadowing to ensure you’re selecting the right person – and don’t forget the importance of onboarding. Directly related to retention, a positive onboarding experience will set your new hire up for long-term success.
Conclusion
iHire’s 2025 Talent Retention Report underscores that retaining employees requires more than competitive pay; it demands a holistic approach that addresses culture, growth, flexibility, and engagement. While voluntary quits have declined, the data shows that employees are staying not only out of economic caution but also because of genuine satisfaction with their work environment, benefits, and career opportunities.
Employers who continue to focus on fostering a positive culture, providing professional development, offering flexibility, and soliciting meaningful feedback are better positioned to turn job huggers into truly committed, high-performing teams.
Ultimately, effective retention begins with hiring the right people and continues with consistent investment in their success and well-being, ensuring a workforce that is engaged, loyal, and ready to drive organizational growth.
Appendices
Candidate Survey Respondent Demographics
The following are breakdowns of candidate respondents’ employment statuses and tenures.
Employment Status Figure 25
Length of Tenure With Current Employer Figure 26
Related Resources
iHire’s 2024 Talent Retention Report
iHire’s Engagement and Retention Resource Library
The State of Online Recruiting 2025
2025 Toxic Workplace Trends Report
Reports & Research Library
Hiring Solutions
Employer Webinars & HR Training
Research Methodology
A total of 1,395 U.S. job seekers (1,185) and employers (210) responded to iHire’s Talent Retention Survey in October 2025 via the Qualtrics XM platform. Respondents came from iHire’s databases comprising employers and candidates across 57 talent communities. 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.
