Information from the Bureau of Labor Statistics and the iHire 2024 Talent Retention Report have demonstrated some shifting trends in the current workforce pool.

Quit rates, the number of employees voluntarily leaving their position each month, hit an all-time high of nearly 3% in the United States in 2022. This period is now referred to colloquially as the Great Resignation.

This figure cooled in 2023 and 2024, however, to right around 2% and is expected to remain stable or improve as employees tend to sit tight when the economy seems unstable.

More interestingly, however, the reasons why employees are leaving their current positions seem to be changing. This presents both a challenge and a unique opportunity for proactive business owners and HR professionals to step in and promote employee retention and long-term staff engagement.

Toxic Workplace Environment

Pay is no longer the primary reason employees are leaving their jobs. In fact, 32.4% of individuals who left a position within the past year cited a toxic or negative workplace as one of their reasons for resigning—making it the most commonly reported factor among survey respondents.

Likely closely related, the second most frequent factor among job quitters was poor company leadership and the third most frequent was conflict with a manager or supervisor.

Combined, these top three answers paint a very clear picture: employees are not quitting jobs, they are quitting bad environments and poor leadership.

What is more troubling is that only 15.3% of employers surveyed thought that employees had left due to a toxic workplace environment. This implies that leadership is either woefully unaware or unwilling to address rotten workplace culture, and it is driving away talent.

The Disconnect Between Reasons and Reporting

Another eye-opener from this new data is the great divide between the reasons why employees are leaving their job versus the reasons or factors they disclose to their employer.

The top three reasons employees gave for quitting, according to their employers, were personal conflict (such as health or family issues), a better job offer for advancing their career goals, and unsatisfactory pay.

While unsatisfactory pay was the third highest reason employers received for leaving, it was only cited as a cause for their departure by 20.5% of respondents. So pay is not often the real reason.

So why the discrepancy? It’s reasonable to assume that if employees are leaving due to poor leadership or toxic management, they may be uncomfortable discussing it with the very managers or supervisors responsible. They may also simply want to keep the peace and leave without further conflict or confrontation.

Other Reasons for Quitting

Below the top three spots, a handful of other important factors drove individuals to head for the exit door. By looking at these reasons collectively, it is pretty easy to see some common threads.

Between 15% and 20% of respondents cited one or more of the following reasons for quitting: poor work–life balance; burnout or stress; personal reasons related to health or family; and a lack of training, development, or opportunities for advancement.

These factors can be summarized as work being overly demanding and job stagnation. Employees value their lives, their families, and their time outside of work and will quit a position that does not appear to appreciate those things as well.

Job stagnation is another critical issue for many in the workforce. It is often easier to advance or secure higher pay by applying to external opportunities than waiting for internal ones, so it should come as no surprise when team members leave for more promising opportunities.

What Can Employers Do

Long-term success can only be achieved when it is supported by serious talent. So how can employers, leaders, and business owners encourage retention within their organizations?

Understanding the real factors, rather than the reasons employees might cite, is a crucial starting point for addressing turnover. The following are additional actions to further retain top performers:

Foster a positive culture and promote accountability by holding managers and supervisors to high ethical standards.
Respect personal time and, if possible, offer flexible work arrangements, such as hybrid work or flex time.
Provide support systems, such as child care assistance, mental health hotlines, and tuition reimbursement.
Address staff conflicts promptly and encourage honest feedback.
Invest in employee development by offering training opportunities and establishing career pathways.

Conclusion

While employees may be less likely to leave a position quickly during economic uncertainty, that does not mean that voluntary resignations will magically cease.

Companies typically spend an exceptional amount of time, effort, and money on recruiting and hiring talent, but it is more cost-effective to retain current employees than to constantly need to replenish staff.

While this data exposes changes in employee thinking, effective leaders will use this new information to foster a more positive workplace culture and further promote retention.