But employers are warned that they shouldn't get too comfortable amid fewer departures
More employees are deciding to stay with their current employer as job satisfaction goes up, according to a new report, which challenged recent research on the job hugging trend.
Findings from iHire's latest Annual Talent Retention Report revealed that just 35.9% of employees in the United States resigned in the past year.
This is lower than the 38.5% recorded in the 2024 Talent Retention Survey, and down from the 43.3% in the 2023 report.
The findings are consistent with recent research indicating that more employees are choosing to remain with their current employers amid a sense of pessimism about employment opportunities outside their current work.
But iHire's report found that employees are staying because job satisfaction is actually up.
According to the report, 56.3% of employees are "very satisfied" or "somewhat satisfied" with their current or most recent job, up from the 54.8% in 2024.
Warning to employers
But the findings do not mean employees will choose to remain once the labour market heats up next year, according to iHire CEO Steve Flook.
"Our data confirms employees are staying at their jobs longer, but employers shouldn't get too comfortable," Flook said in a statement.
"If the labour market heats up in 2026, job huggers might quickly become job hoppers, and even the most seemingly satisfied workers could be eyeing new opportunities."
Toxic work environments and poor company leadership have emerged as the top reasons why employees are leaving their workplace, according to the report.
Employers, however, believe that personal reasons or better job offers were the top factors driving turnover in their organisation.
"This reveals an ongoing disconnect between what employees tell management and the actual reasons they leave," the report read.
"Continuing to gather honest feedback from staff will prove invaluable in building a culture of trust and transparency that supports retention."
Top retention drivers
Meanwhile, the majority of employees said the top benefits that would retain them at work would be health insurance (68.4%) and 401(k) options or a retirement plan (59.4%). Other benefits include:
- Mental health benefits (28.5%)
- Wellness programmes (25.9%)
- Transportation benefits (25.1%)
- Home office stipends (20.1%)
- Financial planning support (16.6%)
- Student loan repayment assistance (15.3%)
Supporting employees' career growth would also retain them, according to the report, as access to professional development emerged as a top factor (57.4%) influencing loyalty. Other related factors include:
- Clear advancement opportunities (54.8%)
- Meaningful recognition (50.2%)
- Cross-training (46.0%)
- Frequent performance feedback (32.6%)
- Tuition reimbursement (21.9%)
- AI-specific training and resources (20.8%)
"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," Flook said.
