For example, if a company had 20 people quit in the past year, and they had an average headcount of 200, they would divide 20 by 200, which equals 0.1. That’s why organizations need to create an employee value proposition that’s competitive in the marketplace. Your employees need fair pay—without it—you’ll risk losing your top performers. When lines of communication are open, employees are better able to relay their perceptions about the employee experience. Once you’ve collected their feedback, create an action plan with support from senior leaders based on what you’ve learned. It’s expensive, it’s time-consuming, and it’s draining for employees left behind.
Employees with career growth opportunities are likelier to stay with their employer. Studies show that 78% of employees would stay longer with an employer that offers continuous learning and career development programs. These programs allow employees to acquire new skills, take on new challenges, and advance in their careers.
of Gen Z workers would consider other opportunities if their current employer is not socially aware. (RippleMatch,
Poor retention rates indicate motivation and management issues in the workplace, which are likely to negatively impact business growth. Companies that reduce turnover costs and succeed in retaining high-performing employees can experience a potential fourfold increase in profits. It makes sense that all organizations would benefit from highly engaged employees who are willing to stay with them in the long run, and as such, retention efforts are often at the forefront of HR strategies.
- Of those who did talk to their managers, only 17% percent asked what it would take to prevent them from leaving.
- You can measure turnover based on different demographic groups, roles, and tenure length.
- While employees are often having conversations with their managers about their intent to leave, leaders aren’t acting on this information in a timely manner to combat flight risk.
- These survey responses indicate a trend toward reinforcing company culture over hiring talent.
These factors are highly appealing to workers, particularly younger generations. The flexibility to work from home or choose their employee retention statistics hours increases job satisfaction, improving retention. If companies aren’t offering flexible working arrangements, they risk losing talent to competitors adapting to these changes. Furthermore, monitor turnover rates and gather employee feedback through surveys to understand factors affecting retention, allowing you to create targeted improvement strategies. Furthermore, investing in career development programs addresses the 12% of employees who cite a lack of advancement as a reason for departure.
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- Our team functions around clients at the cutting edge of sustaining customer loyalty with constructive advice in its corner.
- While 11% say it’s made them want to quit their jobs, one in six has left a job because they didn’t have access to the right tools to do their work.
- The fact of the matter is, all members of the organization are directly or indirectly responsible for employee retention.
- Despite an average salary of $144,000 per year, 66% of people with this job plan to leave.
Would your employees stay at your company if they didn’t need to make a living? For some employees, the first thing they’d do after winning a lump sum of cash is quit their job to do something they are passionate about. When employees make a career move, they’re 75% more likely to stay with their current company. The new legislation makes it easier for employees to leave companies to pursue new career opportunities.
Workers aged 55 to 64 have an Average Tenure of 9.9 years, While Those aged 25 to 34 Average Only 2.8 Years.
Bear in mind that, even before an employee leaves, talks of quitting and looking for other job opportunities are already affecting those who stay behind. In her role, she transforms survey data and insights into impactful content that empowers HR professionals to create more engaged workplace cultures. A whopping 65% of employees who experienced recent layoffs worry about job security in their current roles. In contrast, only 24% of employees who haven’t experienced recent layoffs feel worried. Nectar recently surveyed 1,000 employees in the United States to uncover some new statistics on employee turnover and retention. Public sector and not-for-profit companies had the highest resignation rates as almost one in five of their workforce quit.
Employee Turnover Statistics To Shape Your Retention Strategy
At the same time, factors like career growth, employee engagement, and recognition remain consistent drivers of turnover across all generations. This finding underscores the importance of fostering a positive workplace culture and providing employees with opportunities for growth and engagement. Employers should focus on creating clear career development paths, realistic job expectations, and supportive work environments to retain top talent and reduce turnover. Effective leaders inspire engaged employees, while poor leadership can drive top talent away. Employee retention statistics is no longer just a matter of offering competitive salaries and benefits.
Businesses that prioritize strong leadership, fair compensation, career development, and mental health support will have a competitive advantage in attracting and retaining top talent. The 2025 employee retention landscape reveals a turning point for organizations. With 51% of employees actively seeking new opportunities and 42% of turnover being preventable, the employee retention data points to a workforce hungry for meaningful engagement, recognition, and growth. The most striking insights show that employees are leaving not just for better pay, but for more compelling reasons — including poor workplace culture, lack of career development, and ineffective management. In 2025, employee retention statistics demonstrate that employees who feel recognized and engaged are far more likely to stay, with Gallup reporting they are 45% less likely to leave after two years. On the other hand, a negative work culture drives nearly half of employees to consider quitting, costing companies valuable talent and driving up turnover rates.
Feedback improves job retention rates.
To promote work-life balance and personal wellbeing, consider offering flexible work arrangements or new wellness benefits, like free lifestyle coaching, gym memberships, or meditation app subscriptions. As a staff writer for Forbes Advisor, SMB, Kristy helps small business owners find the tools they need to keep their businesses running. She uses the experience of managing her own writing and editing business for over 10 years to provide expert assistance to other small business owners. Employee recognition statistics that will show you the ROI, the impact, and the reach of recognition. Judging by these stats, it looks like most industries are getting better, right? Well, remember, 47.4 million people quit in 2021, and over 50 million people quit in 2022!
About 33% of Hiring Managers Expect Turnover Rates to Rise, Costing Organizations Roughly $36,295 Annually Per Quit.
However, only 47% of workers agree they wouldn’t pursue other opportunities in a recession. Now the situation is stabilizing but the outlook is uncertain and organizations worldwide are still making retention a priority. Staying current with labor market trends can be challenging when there’s a vast, ever-changing supply of data. Global data are collected using the Gallup World Poll, which has conducted surveys of the world’s adult population, using randomly selected samples, since 2005.
Career Development Is a Top Retention Factor
Explore this content for a deeper dive into employee retention metrics and attraction in the modern workplace. Below is the full list of factors that Gallup studies, ranked by importance, to reveal what matters most to employees who are considering taking a job with a different employer. In 2024, 51% answered “actively” – matching the same response for 2014 (the two highest data points over a decade) – 21% more than in 2018 (the strongest loyalty indicator within the research window). When one in every two employees seriously considers job skipping, it’s a flashing alert signal that HR value propositions are faltering. The average voluntary turnover rate in the U.S. has continued its downward trend, now sitting at 13.5%, according to Mercer’s 2025 Workforce Turnover Survey.
Furthermore, candidates are increasingly interested in a company’s culture and values when deciding if a role is right for them, says Clinch in its latest study. Answering these questions will get you closer to reducing turnover and increasing retention at your company. Finally, there were a few outliers who had been with their company for 21+ years, where 11% of workers fell. Have you ever felt a sense of dread on Sunday as you realized that the weekend has escaped you once again?
