iHire has released its latest Talent Retention Report, revealing that voluntary quits declined for the second consecutive year. However, employees are staying put—or job hugging—not necessarily out of caution in a slow labor market, but due to higher job satisfaction rates.  

Specifically, 35.9% of workers say they quit a job in the past year, down from 38.5% in 2024’s survey, and 43.3% in 2023—a two-year drop of 17.1%. At the same time, job satisfaction rose slightly year-over-year: 56.3% of workers report being “very satisfied” or “somewhat satisfied” with their current or most recent job (up from 54.8% in 2024). And, of the candidates surveyed who say they are not actively looking for a new job, 45.5% say they are sticking around out of happiness with their role, compared to 15.6% who say it’s “too risky” to look for another job in this economy.  

Other notable findings include the following.  

• Toxic workplaces are the top driver of quits for two years running. Over a quarter (26.8%) of employees who left jobs in 2025 resigned due to a toxic work environment, followed by poor company leadership (24.2%) and unhappiness with their manager (22.8%). Still, fewer workers left jobs due to burnout, poor work-life balance, and unsatisfactory pay than in 2024, suggesting employers are making headway in their retention efforts.  

• Belonging drives satisfaction. Approximately 30.4% of workers don’t feel a sense of belonging at their current or most recent job; of that group, 57.2% report dissatisfaction with their job.  

• Involuntary separations play a key role in workforce churn in 2025—but employers aren’t rushing to replace staff members. Nearly 20% of employers have conducted layoffs and over half have fired or terminated employees this year. However, 44.3% of employers have not backfilled a position left by a departing employee in 2025.  

• Retention hinges on fundamentals. A positive work environment (81.5%), health insurance (68.4%), work-life balance (63.9%), retirement benefits (59.4%), and professional development opportunities (57.4%) are the top five factors keeping employees on board.  

• Pay raises aren’t always enough. Nearly 20% of employees say they gave raises to prevent resignations in 2025, but the employees opted to leave anyway.  

“Our data confirms employees are staying at their jobs longer, but employers shouldn’t get too comfortable,” says Steve Flook, president and CEO of iHire. “If the labor market heats up in 2026, job huggers might quickly become job hoppers, and even the most seemingly satisfied workers could be eyeing new opportunities. 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.”