HR leaders can keep their top talent engaged and stave off turnover by acting on employee feedback, providing opportunities for growth, and prioritizing flexibility.
By Maggie Mancini
After two years of employees leaving their jobs in droves, employees are embracing The Big Stay. With workers less inclined to seek opportunities elsewhere, HR leaders are grappling with how to enhance job satisfaction and improve engagement among their top talent. iHire’s 2024 Talent Retention Report reveals an 11.1% year-over-year increase in voluntary quits, though employees who do quit do so because of toxic workplaces and poor leadership—not pay. Chrisanne Bowden, principal HR business partner at iHire, says that HR leaders need to take a step back and look at their company culture to address these key turnover drivers and boost overall satisfaction.
“Does your organization support and empower employees to perform meaningful work while encouraging collaboration, transparency, and trust? If not, it’s time for a change, and that change starts at the top,” she says. “Work with management to lead by example as you foster a culture that retains and engages talent. Identifying or even changing your company’s core values can help determine the best direction to take.”
While toxic workplaces and poor leadership are the top drivers of voluntary quits, employees aren’t being honest about those reasons in their exit interviews, the report finds. Nearly one-third (32.4%) of workers who quit their jobs in 2024 cited a toxic or negative work environment as their reason for leaving; 30.2% left due to poor company leadership; and 27.7% resigned because they were unhappy with their manager or direct supervisor.
Employers, on the other hand, say departing employees gave different explanations for quitting, including “personal reasons” such as family or health issues (51.4%) or receiving an offer that better aligned with their career goals (42%).
While exit interviews are still beneficial, utilizing stay interviews, focus groups, and pulse surveys with existing employees can provide HR with actionable feedback on what the company can do better, Bowden says. These conversations will only be effective, though, if the organization’s culture promotes open communication, psychological safety, and trust.
Employees also increasingly value a strong work-life balance—and the flexibility needed to achieve positive work-life balance—over more traditional retention drivers like pay, the report reveals. About half (50.9%) of employees say they would accept a job with lower pay if the employer provided a better work-life balance, while 40.8% say the same about greater flexibility. Unsatisfactory pay, on the other hand, is the sixth most common reason employees gave for leaving a job in 2024 (20.5%), slightly behind lack of work-life balance (20.8%).
“The pandemic changed employee expectations when it comes to flexibility,” Bowden says. “Companies that don’t appeal to associates’ needs for a healthy work-life balance will surely have more trouble with turnover.”
Though employee interviews and surveys can help provide insights into the types of working arrangements employees want, HR leaders can also work with managers to determine which perks make sense for the company. Bowden explains that, while not all workplaces are conducive to remote work, flex time and four-day workweeks might be options.
In fact, iHire’s report finds that more than half (54.7%) of workers would be willing to stay if they were allowed the ability to set their own start and end times during the workday, while 44.4% and 41.5% said the same thing about a four-day workweek and hybrid working arrangements, respectively.
To prevent turnover and enhance loyalty among top talent, Bowden says that HR leaders should consider the following.
- Top talent will look elsewhere if they don’t have access to growth. HR leaders should implement career pathing to reduce turnover and enhance employee loyalty. “With career pathing, employees are shown the steps, proficiencies, and other qualifications needed to reach the next and subsequent levels in their career,” Bowden says. “This gives them a tangible plan for progressing and reasons to stick around.”
- Helping employees with work-life balance will prevent stress and burnout. “A healthy work-life balance was a common theme throughout our research,” she says. “Giving employee projects that excite them and appeal to their strengths is also a great way to keep them engaged,” Bowden explains. This could mean providing opportunities for them to step outside of their comfort zones, work with different people, cross-train, or try new technologies.
- Retention begins with recruitment. “Determine whether you are attracting the right people to apply for your jobs who will stay with you long-term,” Bowden says. “Are you sourcing career-minded, committed candidates who share your company’s values?”
“Consider whether you are providing a positive candidate experience throughout the recruiting process,” Bowden says. “If a future employee has a poor experience, or you don’t communicate with them clearly or don’t set expectations about what their role entails, that will set a negative tone for their relationship with you.”
By utilizing employee feedback, working to improve leadership, and prioritizing work-life balance, HR leaders can keep top talent engaged and loyal.
