iHire has released its 7th Annual Talent Retention Report, revealing that voluntary quits have declined for the second year in a row. However, employees are staying in their roles not just due to market uncertainty, but increasingly because they are happier at work — a trend the report describes as “job hugging.”

According to the survey, 35.9% of workers quit a job in the past year, down from 38.5% in 2024 and 43.3% in 2023 — a two-year decline of 17.1%. At the same time, job satisfaction increased: 56.3% of workers reported being “very satisfied” or “somewhat satisfied” with their current or most recent job, up slightly from 54.8% the year prior.

Among workers not actively job hunting, 45.5% said they were staying because they genuinely enjoy their roles, while only 15.6% cited concerns about economic risk as their reason for staying put.

Key Findings on Employee Turnover, Engagement, and Satisfaction

  • Toxic workplaces remain the leading reason for quitting: 26.8% of employees who left jobs in 2025 cited a toxic environment as the top cause, followed by poor leadership (24.2%) and dissatisfaction with their manager (22.8%). However, fewer workers quit due to burnout, work/life balance issues, or poor pay compared to 2024.
  • A sense of belonging is tied to satisfaction: 30.4% of workers said they did not feel a sense of belonging, and within that group, 57.2% were dissatisfied with their jobs.
  • Involuntary turnover contributed significantly to workforce churn: 19.5% of employers conducted layoffs, and 54.8% terminated employees in 2025. Still, 44.3% of employers did not backfill roles vacated by departing staff members.
  • Retention relies on core workplace fundamentals: Workers identified the top factors keeping them in their jobs as 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%).
  • Raises don’t guarantee retention: Nearly 20% of employers gave raises to prevent resignations, yet those employees still left.

“Our data confirms employees are staying at their jobs longer, but employers shouldn’t get too comfortable,” said Steve Flook, President and CEO of iHire. “If the labor market heats up in 2026, job huggers might quickly become job hoppers. Even satisfied employees may begin eyeing new opportunities. Employers must continue prioritizing retention by nurturing inclusive cultures, offering flexibility, supporting growth, and acting on employee feedback.”

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