In September, the voluntary quit rate for employees in the U.S. fell below 2% for the first time since 2015, according to a Bureau of Labor Statistics (BLS) report. An exception occurred during a temporary drop in the first three months of the COVID pandemic, after which it hit a record 3%. This means that approximately one million fewer Americans quit their jobs in September than they did monthly at the height of the pandemic.
WTW’s 2024 Global Benefits Attitudes Survey reports similar patterns, finding 72% of employees are staying with their employers — a significant change from 2022 when 53% were looking to leave. While a quarter of employees were open to offers in 2022, only 11% would welcome them today.
Although the quit rate popped back up to 2.1% in October (similar to where it had been for the previous several months), some now label the current environment, The Great Stay or The Big Stay, representing a sharp contrast with the Great Resignation during the pandemic. Effective leaders closely monitor the reasons behind quit rates and work to create balance between employee retention and healthy turnover.
Monthly quit rates vary significantly by industry and by season. For example, quit rates in leisure and hospitality as well as retail trade are generally higher and more variable than in professional and business services or in manufacturing. Quit rates also tend to be higher some months than others.
Experts differ in their opinions on what a healthy quit rate looks like, yet they generally agree that lower is better. They also agree that quit rates that are too low can lead to lower performance, less innovation, reduced skill growth and regeneration, and economic malaise.
During recent conversations with chief human resources officers (CHROs), several shared that they are experiencing very low levels of voluntary turnover, in some cases close to zero. While the CHROs prefer moving away from the high turnover and “churn mentality” of the Great Resignation, they are concerned about stagnation.
Many CHROs cite positive and hard-fought reasons for employees staying, such as people enjoying their work, colleagues, managers and company cultures. The CHROs say many employees feel engaged, value their work arrangements and health and retirement benefits, and find their compensation competitive. This aligns with WTW’s Global Benefits Attitudes Survey, where employees say pay (48%), job security (41%), health benefits (36%) and flexible work arrangement (31%) are some of the top reasons they stay.
Other reasons employees stay are structural. The BLS data show that fewer job opportunities are available today compared with previous years. Even though there are still millions of open jobs in the U.S., there are far fewer available to potential job changers.
Additional reasons employees stay reflect fears or risk aversion. Many employees would rather stick with what (and who) they know in the current environment. WTW’s Global Benefits Attitudes Survey reports employees are turning to their current employers for a sense of security amid a cost-of-living crisis, recent high inflation and global political unrest. The CHROs also say employees worry about new performance expectations, forming new relationships and navigating different organizations.
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Given the stabilization of labor markets and the reduction in employee movement, salary budgets are trending down. The most recent WTW salary planning survey shows companies are being more conservative, with U.S. salary budgets expected to rise by 3.9% in 2025, compared to 4.1% in 2024 and 4.5% in 2023. Although the 2025 figures are materially higher than average increases over the past 20 years, effective leaders are carefully evaluating increase amounts.
02
Because fewer employees are leaving on their own, effective leaders are more proactively managing employee performance in the current environment. They set clear expectations with employees, provide routine performance feedback and address issues quickly and directly. They also train managers to more effectively manage performance.
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Because both turnover and hiring are down, effective leaders are working with managers to assess the skill levels of current employees. These leaders aim to identify skill gaps before they become issues and to target hiring for the most needed skills as early as possible. They also use data regarding current employees’ skills to tap specific skills as needed.
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Effective leaders fight stagnation by encouraging new thinking and innovation wherever possible. They not only highlight new ideas and innovative solutions, but also fund enterprise- or unit-wide innovation challenges to identify, recognize and reward those who lead the way.
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Because the ideal quit rate varies by industry, country, organization and season, effective leaders work to understand the ideal range for their companies and teams, acting accordingly when it fluctuates above or below targets through pay, benefits and career programs.
Effective leaders work to better understand turnover trends in their organizations and markets, and intentionally create continuity and engagement without stagnation.
A version of this article originally appeared on Forbes on December 13, 2024.
