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Employee Retention Statistics for 2025

Making retention a part of your business strategy, https://sikh.id/bank-requirements-understanding-the-concept-of/ therefore, means you can retain high-performing talent and attract the best applicants for future hires. A favorable work environment makes new employees more likely to stay and current employees more likely to give their best. The longer an employee stays with a company, the more they adopt its core values. In addition to challenges in attracting candidates, 33% expect employee turnover at their company to increase.

  • If you want to manage your organization’s employee turnover rates, you must first understand what compels them to leave.
  • Shared negative shocks (reorganizations, crises) can paradoxically strengthen commitment when employees perceive aligned incentives and transparent leadership.
  • By understanding why staff leave an organisation, employers can devise initiatives that reduce turnover and increase employee retention.
  • The key is understanding your employee retention profile.
  • The statistics we’ve covered in this article highlight the growing importance of employee retention.
  • 60% of employees say they would stay at a job longer if they had more control over their work schedule (Glassdoor, 2023)

Unfortunately, many employees are dealing with the stress of burnout right now, leading to some big employee retention statistics issues at work. Working from home gives some employees a reprieve from dealing with issues like coworkers touching their hair or overhearing insensitive comments. While this is nearly 6 in 10 employees, there is still a big chunk of workers who don’t need the option to work remotely to enjoy work.

Employer of Record Market Trends, Key Players, and Stats

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. I’ll share key employee retention statistics that shed light on the turnover problem and explore effective strategies to help retain your top talent. An organization’s turnover rate describes the rate at which full-time employees leave, while the company’s employee retention rate indicates how many employees choose to stay for a given time period. 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. Voluntary turnover, where employees leave by choice, has stabilized or dropped for most organizations, pointing to effective employee retention strategies at work. In addition to implementing employee retention efforts and improving employee experience, HR is tasked with talent development strategies to ensure each employee has a career growth trajectory.

Every time an employee leaves, the company incurs losses, which hurts its bottom line. 63% of employees believe their organization values work-life balance if they offer parental leave (Glassdoor, 2023) A 2023 survey found that 31% of employees have left a job due to poor work-life balance (Buffer, 2023) 45% of employees cite «burnout» as a reason for leaving, and 60% of those who burnout leave within 6 months (Deloitte, 2022) 77% of employees consider work-life balance a top priority when choosing a job (FlexJobs, 2023)

Without knowing industry statistics, it’s hard to benchmark whether trends and patterns in your organization are the norm or alarming. Book a free call with us today to explore tailored solutions that keep your teams thriving and reduce turnover. Use total rewards statements so each worker appreciates their full value proposition, decreasing the incentive to leave over pay or benefits dissatisfaction. Where possible, differentiate your employee experience (e.g., mental health support, experiential team building) to make your organization the employer of choice.

29% Of Workers Have Quit A Job Within 90 Days Of Starting

85% of employees state that «feeling valued» is critical to their job retention (WorldatWork, 2022) A positive work environment is the top factor (78%) for employees staying at a job (Glassdoor, 2023) Companies with engaged workforces have 21% higher profitability, and engaged employees are 87% less likely to leave (Gallup, 2022) 45% of organizations use retention bonuses for high-potential employees (McKinsey, 2023)

Employee retention and turnover rates

Highlight these benefits in recruitment and retention materials to reduce talent loss and improve your organization’s overall employee retention statistics. Younger generations often seek career development opportunities and flexible work arrangements, influencing retention rates. This turnover rate reflects both voluntary turnover (employees quitting for new job opportunities) and involuntary turnover (due to layoffs or firings). This factsheet explains the metrics of employee turnover and retention and strategies on how to keep them at healthy levels.

Alaska emerged as the standout performer with a substantial 1.5 percentage point decrease in total separations rates, while Louisiana, Massachusetts, and Tennessee each achieved 0.8 percentage point improvements in retention. The state-wise employee retention patterns in March 2025 reveal significant regional variations that reflect local economic conditions and industry concentrations. Organizations that successfully navigate this critical six-month period demonstrate significantly higher overall retention rates and reduced recruitment costs. One-third of new employees quit after about six months, according to statistics, which is a significant number requiring urgent attention from employers.

Organizations that can address these multifaceted needs will be best positioned to retain top talent in an increasingly competitive job market. To address this issue, employers should focus on improving workplace culture, communication, and employee experience through competitive benefits and supportive leadership. To buck the trend, ensure a rich onboarding experience and pair new employees with a seasoned mentor. If employees don’t feel valued, they’ll likely have a foot out the door. Employers must up their game when it comes to corporate culture and benefits to retain valuable staff. This means self-reported employee turnover risk is the highest it’s been since 2015.

  • Employees with flexible work hours are 33% less likely to leave their jobs (SHRM, 2023)
  • In fact, 29% of our survey respondents shared they quit a job within 90 days of starting.
  • 77% of voluntary leavers either left within three months of starting their job search or left without actively searching.
  • Your company’s mission statement is an essential piece of the puzzle for employees.
  • Would your employees recommend your organization as a great place to work?
  • The companies that will succeed in 2025 and beyond are those that invest in fostering positive cultures, recognition, and engagement.
  • Creating a positive workplace culture that fosters collaboration, recognition, and a sense of belonging can significantly improve employee satisfaction.

42% of employees say they would stay at a job longer if their manager provided more recognition (Deloitte, 2022) 50% of employees would accept a lower salary if it came with better career development opportunities 38% of employees say they would stay at their job longer if they had more opportunities to work on stretch assignments (Harvard Business Review, 2022) 55% of employees say they would leave their jobs if they don’t see a clear career path (Deloitte, 2023)

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. One way to read the quit rates is as a gauge of how confident the employees are that they can find and secure a new job. If you are a recruiter or human resources manager, you need access to the latest employee retention statistics. 48% of employees would stay at a job longer if they had more opportunities for social interaction at work (Glassdoor, 2023) 75% of employees believe company culture is a key factor in their retention (SHRM, 2023) A 2023 survey found that 57% of employees would stay at their jobs even if offered a higher salary if the culture was right (Buffer, 2023)

Developing a culture of recognition can foster loyalty and create an environment where employees are motivated to perform at their best. A recent study revealed that 60% of employees who report high job satisfaction are likelier to stay with their employer long-term. Businesses must tailor their retention efforts by offering clear career paths, professional development programs, and mentorship opportunities. A recent study found that 65% of employees are likelier to stay with a company that offers flexible work arrangements, including remote and hybrid work options. According to a Gallup study, companies with higher employee engagement and retention report 2.5 times more revenue growth than those with low engagement.

Employees who take all their PTO have a 15% lower turnover rate (WorldatWork, 2023) Organizations that offer hybrid work options retain 20% more employees (BLS, 2023) Employees with flexible work hours are 33% less likely to leave their jobs (SHRM, 2023) Remote workers have a 25% lower turnover rate than on-site workers (Buffer, 2023)

Looking ahead to 2026, pay attention to generational shifts, the influence of AI, economic trends, and changes in job design. That includes applying people analytics, strengthening culture, supporting flexible work, https://tomomedical.org/index.php/2022/04/07/understanding-double-declining-balance/ and ensuring strong leadership at every level. Retention must be treated as a strategic priority. Voluntary turnover in the U.S. is showing signs of stabilizing in 2024–2025, following the sharp fluctuations during the Great Resignation. Use hazard/survival analysis (from biostatistics) to estimate “churn curves” by tenure. For example, GPT-3.5 fine-tuned models have been shown to outperform traditional classifiers on HR attrition datasets.

This translates to an employee turnover rate of 10% or less if you don’t factor in dismissals and retirements. The more you’re replacing employees who resign, the more you’ll divert HR’s time and energy towards posting job openings, sorting through resumes, conducting interviews, and onboarding new hires. That is why you benefit from creating a positive work environment to drive employee retention. The longer you retain your employees’ services, the more experience they accumulate and the better they become at their jobs.

Companies with a «buddy system» for new hires have a 30% higher retention rate (Deloitte, 2022) Employees with access to mentorship programs have a 50% higher retention rate than those without (McKinsey, 2023) Employees who receive regular promotions are 50% less likely to leave their jobs (BLS, 2023) Organizations with a mentorship program have a 30% higher retention rate among new hires (Harvard Business Review, 2022) Paycor HR Analytics Software provides valuable workforce insights into headcount, resignations, retention, compensation, and more.

This statistic may seem alarming, but it also highlights the shifting nature of employee loyalty. A staggering 50% of Millennials expect to stay with their current employer for only two years or less. Millennials, who make up a large portion of the workforce, are known for being more transient compared to older generations.