iHire released its 2023 Talent Retention Report, sharing the results of its survey of more than 4,100 U.S. workers and employers from 57 industries. The fifth annual report suggests voluntary employee resignations remained steady year-over-year despite an overall increase in job satisfaction, while toxic work environments were the top drivers of quits.
Notable findings from iHire’s survey are below.
- Nearly half (43.4%) of employees quit a job in the past 12 months. Voluntary resignations rose 5.3% from 2022 to 2023, and 73.3% of employers who experienced turnover this year attributed “all” or “most” of it to voluntary quits.
- More than half (56.3%) of workers are satisfied with their current or most recent jobs. This suggests a 16.3% year-over-year increase in overall job satisfaction. In addition, 25.2% of respondents are “very” satisfied with their jobs—a 64.7% increase from 2022.
- More than one-third (35.7%) of employees quit due to a toxic or negative work environment—the top reason for leaving a job in 2023. Unsatisfactory pay ranks only seventh on the list of reasons for quitting (20.3%). Similarly, when employees are asked to identify the most important factor besides pay influencing their decision to stay with an employer, a positive work environment topped the list of resources (25.7%).
- Approximately 13.3% of employers anticipate turnover increasing at their organizations in the next three months. However, 46.9% of employers believe turnover will stay the same, 20% think resignations will decrease, and 19.8% are unsure.
- More than one-third (38.9%) of workers expect to leave their current job within a year. At the same time, 33.4% of employed respondents were unsure how much longer they would stick around with their employer.
- Nearly two-thirds (65.2%) of employers have given raises to improve retention rates in the past year, and 40.2% have offered bonuses. Even amid economic uncertainty, employers have upped the ante to retain their team members.
“Although survey respondents expressed greater job satisfaction, today’s talent won’t hesitate to pursue a new opportunity if they believe it better aligns with their values and aspirations,” says Steve Flood, president and CEO of iHire. “For example, workplace toxicity is driving more quits than unsatisfactory pay, as workers want to thrive in an environment that allows them to grow professionally and build relationships. Employers who focus on providing an exemplary employee experience their staff can’t find elsewhere will most successfully retain team members in the coming months.”