The Great Resignation has led to the Great Stay. But people still leave, and that has a lot to do with how they’re led.
People aren’t quitting like they used to. According to a report released earlier this month from iHire, we are now in the midst of the Great Stay, the follow-up to the Great Resignation: Last year, approximately 38 percent of U.S. workers said they voluntarily left a job in the past year, a drop from about 43 percent in 2023.
Those people may be sticking around because of a cooling job market, but it’s not just hard economic numbers that are influencing workers’ decisions. Indeed, “unsatisfactory pay” ranked only sixth on the survey’s list of reasons why people left their jobs. A “toxic or negative” workplace, “poor company leadership,” displeasure with a manager, and poor work-life balance were all cited by larger proportions of respondents.
The trend calls to mind that old saw about how unhappy employees don’t leave jobs—they leave people.
The trend calls to mind that old saw about how unhappy employees don’t leave jobs—they leave people. Further evidence of that dynamic comes from the portion of the survey where employers share what they were told about departures. Rarely do employees share that the workplace became toxic, or that they have a strained relationship with a manager; more often, they cite “personal reasons” or a better job offer. A polite dishonesty about dysfunctional workplace culture abides.
So getting people to stick around may require addressing the factors that make a workplace toxic, and providing some supports to make employment meaningful to people. Wellness and mental-health benefits were cited by employees as key to their retention (immediately after nuts-and-bolts perks like medical and retirement benefits); moreover, majorities of employees say they prize professional development (61 percent), clear paths to promotion (56 percent), and “meaningful recognition” (53 percent) as means to retain them.
Flexible work environments—an issue that’s become more contentious as more organizations return to pre-pandemic policies—play a critical role as well. A majority (55 percent) of workers say that flex-time policies will help keep them at their job, and there’s strong support for hybrid and four-day-workweek arrangements as well.
The report notes that keeping people amid this dynamic starts at the top: Leaders need to be “transparent, compassionate, and fair, making employees feel valued, secure, and motivated to stay.” What that looks like will different from organization to organization, but a common factor is getting ahead of problems before they start. Less than 20 percent of employers said they conducted “stay interviews” to surface what factors are keeping people at their jobs, and what potential challenges they may face.
More likely than not, part of the cultural fix will involve empowerment—giving people the opportunities to learn new skills, to lead, to feel like they play a meaningful role in how the organization is run. As the report puts it: “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.” Compensation may matter more in the coming year, if economic anxiety persists. But even if so, it won’t be the only thing that matters.
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