iHire’s fourth annual Talent Retention Report has explored the extent of the Great Resignation and uncovered key factors driving the Big Quit. In surveying 2,665 workers and 578 employers from 57 industries across the U.S., the company found that voluntary employee turnover increased 31.2 per cent while job satisfaction dropped 11.7 per cent in 2022.
The survey also found:
1. Voluntary turnover is as prevalent as expected. 41.2 per cent of workers left a job voluntarily since September of 2021 – a 31.2 per cent increase in quits from 2021’s Talent Retention Report. In addition, of the 89.4 per cent of employers who experienced turnover in 2022, 73.5 per cent attributed “all” or “most” to voluntary resignations.
2. Employee engagement and satisfaction are declining. Job satisfaction dipped 11.7 per cent in 2022: 48.4 per cent of workers said they were “very” or “somewhat” satisfied with their current or most recent job, compared to 54.8 per cent in 2021’s report. At the same time, 29.5 per cent of employers have noticed a decline in employee engagement – or an increase in “quiet quitting” – in the past year.
3. Issues with management are driving resignations. 43.7 per cent of employees who quit a job in the past year left because they were unhappy with their manager or supervisor – this reason was cited more frequently than unsatisfactory pay (43.4 per cent) and a poor work/life balance (35.4 per cent).
4. Employees aren’t being honest with employers about their reasons for leaving. The top motive companies said employees are giving for quitting their jobs: personal reasons (healthy, family issues, etc.), noted by 34.5 per cent of employers. Yet, 16.1 per cent of workers said this was why they left their job. Similarly, 19.4 per cent of employers said employees are leaving because of issues with management, although this is the top reason employees cited for their departures (43.7 per cent).
5. Workers are not worried about layoffs. Despite the economic situation in the U.S., 73.1 per cent of workers said it was “not likely” that they would be laid off from their jobs in the upcoming six months.
6. Money is the main motivator to “stay.” When asked to imagine they were offered a new job elsewhere, 71.8 per cent of workers said they would stay in their current role if they received a pay raise. Luckily, employers are delivering – 72.1 per cent said they had given pay raises and 46.5 per cent said they had given bonuses in the past year to improve retention.
7. Employers are acting to prevent turnover. A mere 7.5 per cent of employers said they did “nothing” to improve retention in the past year. Aside from pay raises and bonuses, employers have given more meaningful employee recognition (37.1 per cent), allowed for more flexible schedules (35.4 per cent), and expanded professional development opportunities (26.4 per cent) to prevent turnover.
“Our survey showed that four out of 10 employees quit a job during the past year,” said Steve Flook, iHire’s President and CEO. “That trend will likely continue if employers don’t meet the needs of their evolving workforces, including pay raises, growth and advancement opportunities, flexible scheduling options, and stronger relationships with managers, according to respondents. Furthermore, retention begins with employee engagement and a company culture that puts an organisation’s people first.”
To download iHire’s 2022 Talent Retention Report, visit https://go.ihire.com/cnc49.
