The Great Resignation in 2025: Has Loyalty Finally Been Laid Off?

The Great Resignation is not a phase; it is the reality we are living in now. As we head into 2025, the power dynamics between employers and employees have flipped. Employees are no longer passively waiting for the next promotion or raise; they are actively seeking out companies that truly value them and are willing to jump ship if they don’t feel that loyalty is being reciprocated.

At the onset, it is helpful to define loyalty. Loyalty isn’t about staying put in a job no matter what; loyalty is earned through mutual respect, trust, and opportunities for growth. If your company isn’t offering that, don’t be surprised when your top talent heads to the competition.

You might be thinking, “But we offer great benefits and competitive salaries!” That’s good, but in today’s world, it’s not enough. If you want to keep people, you have to understand what is driving them to leave in the first place. Let’s break down why talent is walking out the door and how you can fix it before it’s too late.

PSA – this blog may contain statements that will challenge the way you think or operate. Proceed with caution (and an openness for self-reflection).

Loyalty Is Not One-Sided: Just Ask Dwight Schrute

Remember the quote from Dwight Schrute in The Office? “Would I ever leave this company? Look, I’m all about loyalty. I feel like part of what I’m being paid for here is my loyalty. But if there were somewhere else that valued loyalty more highly, I’m going wherever they value loyalty the most.”

That is the reality today. Employees are loyal to companies that make them feel valued, and if they don’t get that feeling, they’re gone. It’s no longer just about salary; it’s about culture, opportunity, respect, and yes—loyalty from the organization, not just the employee.

But here is where the disconnect happens: many companies want loyalty but are not willing to offer the environment that fosters it. They celebrate retention, but when layoffs or restructuring come around, they don’t care why people leave—they care how people leave. They’ll say, “We had a culture of retention, but clearly, we just didn’t find the right fit.”

In reality, it is not always the employee who is not a fit; sometimes it is a system failure. You could have done more. And here’s the kicker: if employees feel like they’re just another number, they won’t stick around. They’ll bounce to places where loyalty is genuinely rewarded, or where vision can be realized (even through difficult circumstances). Let’s face it—loyalty isn’t just about staying for a paycheck. It’s about whether the company cares about you as much as you care about them.

The 5 Reasons Employees Are Leaving

The facts are stark. According to LinkedIn’s 2024 Workforce Report, 63% of employees said they are considering leaving their jobs in the next 12 months. Why? There are five core reasons:

1. Lack of Career Advancement: Talent wants growth. According to Gallup, 87% of millennials say career development is important to them, but only 34% of employees strongly agree that they have the opportunity to grow at work. You don’t just need to offer a career path—you need to make it clear and actionable.
2. Bad Leadership and Poor Culture: Leadership is everything. SHRM reports that 60% of employees leave because of their boss, not the company. It’s not just about who’s in charge, but how they lead and whether they cultivate a work environment that empowers employees. How communication takes place also has a significant impact. If trust is broken by managers hiding behind HR, or if promises are not kept (even if it’s not the fault of the manager), employees feel it deeply.
3. Compensation and Benefits (or Lack Thereof): Employees want to feel they are getting what they are worth. The reality is that employees can get a 10-20% pay raise by switching jobs. Compare that to the typical 3% cost-of-living increase many companies offer. If that is the pay gap, how can you expect loyalty?
4. Job Insecurity and Layoffs: People don’t want to feel expendable. Layoffs aren’t just numbers on a spreadsheet—they impact trust. Gallup reports that 70% of employees are disengaged after layoffs, and 56% of employees say layoffs would make them consider leaving. If you’ve been part of an over-hiring cycle, employees are looking at you sideways—waiting for the other shoe to drop.
5. Work-Life Balance: The pandemic redefined what work means. 55% of employees now prioritize flexible work arrangements over pay. If you’re still holding onto rigid schedules or unwilling to embrace hybrid or remote work options, you are going to see your talent walk.

The Cynical View of Retention: When Strategies Feel Like Passing the Buck

Let’s address the elephant in the room: the cynicism. Companies tout retention strategies and celebrate “long-tenure” employees as if it’s some holy grail. But when employees leave, be wary of the finger-pointing. “Well, they just weren’t a good fit.” Or, “They should have spoken up sooner.”

Here’s the problem: the real issue is often the company itself. According to the American Bureau of Labor Statistics, 3.8 million Americans voluntarily left their jobs in October 2024 alone. That’s not just employees being fickle; it’s a systemic failure to retain talent.

Retention strategies that shift the blame to the employee aren’t strategies—they’re excuses. If you really want to keep people, look at what you’re offering before they leave. Are you providing career development, a supportive culture, competitive pay, and flexibility? If not, don’t expect them to hang around for the next round of layoffs. One way of guarding against this is by engaging in regular one-on-ones, not just waiting for the yearly/quarterly review. Discover issues before they become problems, and you’ll save yourself a headache (and a seat to fill).

Pay Raise vs. Cost of Living: The Pay Gap That Can’t Be Ignored

If your employees are moving to the competition for a 10-20% pay increase, it’s not just about chasing more money. It’s about the simple fact that your compensation structure might not be keeping up with the market. According to SHRM, 60% of employees say pay is a critical factor in their decision to leave. And guess what? 55% of employees say they haven’t seen a significant pay raise in the past two years.

So, when employees can jump ship for a pay bump that actually reflects their worth, it’s hard to blame them for leaving. And if you’re only offering a 3% cost-of-living adjustment, don’t be surprised when they take the offer that pays what they believe they’re really worth.

Retaining Talent in 2025: The Road to True Loyalty

If you want to retain your talent in 2025, it’s time to rethink everything—from leadership to pay, to career growth, to culture. Here’s how you do it:

1. Develop Better Leadership: Leaders are the foundation of culture. According to Gallup, employees who work for managers who focus on their strengths are 60% more likely to be engaged and stay longer. Invest in leadership development and make sure your leaders know how to foster an environment of trust and growth.
2. Invest in Career Growth: Clear pathways for advancement should be a given. If you want to keep employees, make sure you’re not just saying it, but proving it. Career development is a critical retention strategy, and without it, employees will feel stagnant and move on.
3. Offer Competitive Pay: Compensation isn’t just about being competitive—it’s about being fair. If you’re lagging behind, people are going to leave. Offering 10-20% higher pay is not a nice-to-have, it’s a necessity if you want to keep up with the market and retain your top performers.
4. Be Transparent About Change: Layoffs, restructuring, and over-hiring leave scars. Don’t sugarcoat decisions or hide behind corporate jargon. Be honest and transparent with your employees about the challenges the company is facing and the changes they can expect. Trust is a two-way street.
5. Embrace Flexibility: Flexibility isn’t just a perk; it’s an expectation. The future of work is hybrid, and if you’re not offering flexibility, you’re losing out on talent. Period.

The Wrap-Up

Loyalty is a currency that both employers and employees must invest in. If you want loyalty, show it. Pay attention to what’s driving people to leave, and act before it’s too late. If you can build a culture of trust, offer career growth, competitive compensation, and flexibility, your employees will be loyal (and by loyal, we mean committed to your overall vision and direction enough to ride out the difficult times and still show up with a great attitude), not because they have to be, but because they genuinely want to be.

So, ask yourself: to what extent are you a company that values loyalty, or are you just waiting for the next resignation letter to land on your desk?

If you are waiting, the clock is ticking. At Titus Talent Strategies, we don’t just help you find talent, we help you build a thriving culture that keeps your top performers engaged and committed for the long haul. From leadership development to culture-building, talent strategy, and streamlined hiring processes, we partner with you to build a foundation that fosters loyalty, retention, and growth.

Let’s work together to build a culture that attracts—and retains—the best talent. Contact Titus Talent today, and let’s make sure your organization isn’t just a place where people work, but a place they want to stay.