If you ask anyone who works in executive search in Toronto, they’ll tell you that retention is a challenge. Finding great people is only part of the recruitment process. You also have to work diligently to keep them once you get them.
People change jobs more than ever. And amid the pushback on companies that are mandating a return to work for employees, you’d think retention rates would take a dip. People would instead look for other opportunities than go back to the office full-time. But this is not happening.
According to the 2023 Job Satisfaction report by The Conference Board, retention rates are increasing in the U.S. Our executive search team is seeing the same trend here in Canada. Below, we’ll explore why retention rates are increasing.
Greater Job Satisfaction Is Increasing Retention
Overall job satisfaction among US workers increased in 2022 to its highest point since The Conference Board began surveying US worker satisfaction in 1987. The overall job satisfaction rate is 62.3% of those surveyed.
employees with hybrid work arrangements report the greatest job satisfaction compared to fully remote or fully on-premises workers
Better Work-Life Balance
Employees are experiencing a more outstanding work-life balance. Life has gotten back to normal after the pandemic and many companies are responding to employees need for greater balance. 60.1% of people were satisfied with their work-life balance in 2022, an increase of 5.8% from the previous year.
Many People Already Changed Jobs
Workers who joined a new job within the previous year report higher satisfaction in almost all aspects of their jobs. 65.7% said they were satisfied with their current position.
Those who left and found a new job since the pandemic began have a higher overall satisfaction rate than those who have not changed jobs since the pandemic began (65.7% vs. 62.1%). So, many people are satisfied because they already exited a previous job where they were unhappy.
Hybrid and Remote Job Opportunities Improve Satisfaction
Now that people have gotten a taste of working remotely, they want to continue to do so. It has been proven that people can be productive when working from home and those who have been allowed to continue to do so are satisfied and stay in their current job. Those who work in person have a 61.2% satisfaction rate. But those who work hybrid (63.3%) or remote (63.4%) roles are happier.
Economic Uncertainty
The economy is also playing a role in why more people are staying in their current jobs. Our recruiters have spoken to many candidates who have concerns about making a move during a recession. Many people would rather have job security than take a risk right now
Overall, people have been asking for companies to offer better work-life balance and many have responded over the past year. Combine this with economic changes and it’s a recipe for more people to stay.
Retention issues? Check out these blogs by our executive search team
Retention Issues? 4 Lethal Mistakes Employers Will Make in 2022
Should You Hire a “Chief Cultural Officer” to Improve Employee Retention?
Stop the Revolving Door. 4 Ways to Improve Employee Retention
IQ PARTNERS is an Executive Search & Recruitment firm supporting clients across Canada and internationally. We help companies hire better, hire less & retain more. We have specialist teams of recruiters in Executive Search / Board & C-Suite, Technology, Media, Digital & Marketing, Accounting & Finance, Financial Services & Insurance, Startup, Data Science, Consumer, eCommerce & Retail, HR, Manufacturing, Supply Chain & Engineering, Construction & Engineering, Legal & Professional Services, Pharmaceutical & Life Sciences, and Sales. Click here to view current job openings and to register with us.
