MeeDerby provided this white paper for TechServe’s use. View the original post here.

The staffing industry has a crisis of turnover and it’s not just about numbers, it’s about culture, leadership, and opportunity. At MeeDerby, we’ve spent over three decades immersed in the world of staffing and workforce solutions, interviewing hundreds of thousands of professionals from every vertical, and helping organizations of every size, from startups to global, private equity-backed powerhouses, find the right leaders to drive their businesses forward.

The Staffing Industry’s Turnover Crisis

According to ClearlyRated’s 2024 survey of 5,000 staffing firms, turnover rates, both voluntary and involuntary, have reached alarming levels. Nearly 50% of frontline staffing employees leave their roles each year and 20% of executives. This is more than a statistic; it’s a red flag for decision makers. Every time an employee leaves, your firm loses institutional knowledge, incurs recruiting and onboarding costs, and risks damaging client relationships.

Why do staffing professionals leave? Based on our research, and depending on who you ask:

• Poor Leadership: 57% leave because of a bad boss.
• Lack of Opportunity: Most only make a move for clear advancement.
• Professional Development: 41% will leave if not given growth opportunities (Randstad, 2025).
• Work-Life Balance: Now the #1 reason for changing jobs, surpassing compensation for the first time in 21 years.
• Community and Culture: 83% seek community in the workplace; culturally, loneliness is an epidemic.
• Values Misalignment & Toxicity: Over 40% will leave due to misaligned values or toxic environments.
• Compensation: Competitive, transparent pay is essential, but not the sole driver.

Short Tenure (1-3 years): Often due to poor onboarding, training, or job fit.

Mid Tenure (3-5 years): Stagnation, limited advancement, and work-life imbalance.

Long Tenure (5+ years): Desire for more money, opportunity, or flexibility.

The Turnover Cause and Cure

Based on Staffing Industry Analysts North American Internal Staff Survey 2024: How to Retain Internal Staff, we begin to see a clear picture of the causes and cures to turnover in today’s staffing companies:

• The causes: Poor leadership, weak work-life balance, toxic environments, dead-end roles
• The cure: Visionary leadership, shining culture, flexible work, and growth opportunities

Leadership + Culture = Growth  

As the leading executive search firm for the staffing industry, we want to highlight the unique challenges facing staffing firms,and how the right leadership and culture drive growth.

According to McKinsey’s 2025 M&A Annual Report, “at companies with strong cultures, employees at all levels understand the business’s mission and purpose, how decisions are made, how performance is measured, and individuals’ roles in achieving critical organizational objectives.”

The takeaway here is how leadership can align the company to organizational success using the following steps:

• Diagnosing how work gets done
• Setting cultural priorities
• Hard-wiring and supporting cultural change

Leadership Is the Lever

Senior leadership is the #1 driver of culture and retention (Staffing Industry Analysts, 2024). When leaders are visible, values-driven, and intentional about culture, employees stay, perform, and advocate for your brand.

Culture: The Real Differentiator

Culture isn’t a buzzword. It’s the shared values, beliefs, and behaviors that define how your firm operates.

In a recent interview we conducted with the 2024 Best Places to Work Grand Prize Winner, there were several factors that contribute to their successful workplace:

• A connected and robust team that are 100% remote and flexible
• Great digital tools including an app that celebrates every win
• Progressive benefits and ongoing commitment to professional development
• Leadership obsessed with culture, fairness and generosity
• Fair and competitive compensation tied to performance

Their results? High retention, high engagement, and outsized performance.

Growth: Where MeeDerby Steps In

As the executive search firm dedicated to the staffing industry, MeeDerby brings:

• Unmatched industry insight: 36+ years, every staffing vertical, every size firm
• Expertise in building leadership teams that drive sustainable cultures
• A network of proven, high-impact leaders who know how to engage teams and deliver results