Key Takeaways:
- Turnover decreased year over year, with fewer employees (39%) voluntarily quitting in 2024.
- Employees now value flexibility over pay, with many willing to take a pay cut for better work-life balance.
- Staffing agencies will benefit from prioritizing cultural fit, client retention strategies, and work-life balance in their placements and post-placement support.
Recent data from iHire’s 2024 Talent Retention Report reveals a significant shift in the workplace — from the “Great Resignation” to the “Great Stay.”
The survey of over 2,000 U.S. workers and employers found that voluntary quits decreased from 43% to 39% year over year. The majority of employers (73%) expect turnover to either decrease or remain stable over the next three months, and the share of those who experienced turnover in 2024 is down by 8% from 2023.
This cooling labor market suggests a shift in strategy for staffing agencies, one that focuses on quality over quantity in placements and working closely with clients to develop stronger retention strategies for placed candidates.
The work-life balance revolution
Perhaps the most striking finding is that compensation is no longer the primary driver of job decisions. Instead, employees are focusing on improving work-life balance:
- About half of workers would accept lower pay for better work-life balance, and 41% would take a pay cut for greater flexibility.
- Pay dissatisfaction ranks only sixth among reasons for leaving jobs, putting it below poor work-life balance.
- Nearly 70% of workers say employer work-life balance commitments would make them more likely to stay.
Despite the clear preference for flexibility, many companies are still relying on traditional retention strategies. Many employers (62%) offer pay raises to boost retention rates, yet 90% of these companies still experienced turnover. Meanwhile, only 35% offer flexible schedules as part of their retention strategy.
Employees struggle with toxic workplaces, AI concerns
The survey results also highlight differences between why employees really quit and what they tell employers.
Workers cite toxic work environments (32%), poor company leadership (30%), and dissatisfaction with management (28%) as their top reasons for quitting. But they’re most likely to tell employers their decision is driven by personal reasons (51%) or an offer that better aligned with their career goals (42%).
AI is another area of disconnect. More than four in 10 employees are at least slightly concerned about AI replacing their roles, though only a mere 4% of employers have actually considered or implemented AI replacements.
Recommendations for staffing agencies
The “Great Stay” demands a fresh approach from staffing firms across four key areas:
- Enhanced screening protocols that evaluate cultural fit and work-life preferences
- Client consultations focused on retention and flexibility
- Candidate marketing that emphasizes work-life balance
- Stronger post-placement support services
By adapting to these priorities, firms can better serve both clients and candidates in an environment where retention has become as critical as recruitment.
