This employee retention statistic links better retention rates to significantly higher company profitability, showing that retaining employees reduces recruitment costs and managers’ expenses related to replacing employees. This retention statistic demonstrates the direct relationship between career advancement opportunities and employee loyalty, showing training expenses and professional development as key factors in improving retention. Delving into employees’ openness to new job opportunities reveals their intent to leave (or stay at) their current organization. Studies have shown that organizations with diverse teams experience 19% higher retention rates than companies with less varied workforces.
While organizations strive to maintain a productive workforce, there may be factors that require more attention. What retains and motivates employees in one organization might not work in another. AI and big data will introduce new risks and new opportunities. High workplace stress levels and the significant influence on job departure decisions show that organizations must prioritize health and wellbeing. Nearly two-thirds of employees are disengaged or actively disengaged. These figures point to a trend of employees in motion.
- Looking ahead to 2026, pay attention to generational shifts, the influence of AI, economic trends, and changes in job design.
- The Work Institute’s 2024 Retention Report states that U.S. companies spent nearly $900 billion to replace employees who quit in 2023.
- Implement mentorship programs and robust onboarding for new hires to increase their tenure, while continuing to invest in career growth and recognition for established employees.
- Identify what people like and don’t like about the company; what motivates, irritates and elevates your team.
- The turnover rate remains a top concern for employers in 2025 as many employees continue to evaluate their loyalty to their current employer.
- Schedule flexibility reigns supreme as the work arrangement of most importance to employees right now.
The Work Institute found that 75% of employee turnover could have been prevented if the company had a better understanding of what its employees wanted. A report by Awardco compares turnover rates of notoriously low-retention industries from 2020, 2021, 2022, and 2023. When a good employee leaves for a higher position in a different company, it shows that your company has a robust learning management system and a clear professional development plan.
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This will demonstrate your genuine care towards their well-being and happiness. Making recognition a part of the daily workflow ensures that nobody’s efforts go unnoticed. According to a study, peer-to-peer praise is 35.7% more likely to contribute to financial growth compared to manager-only recognition. The https://sisuwoman.eu/2022/03/25/online-payroll-software-full-service-payroll-3/ real-time data collected from these surveys enables HR leaders and managers to gauge the health of the organization instantly.
By understanding why staff leave an organisation, employers can devise initiatives that reduce turnover and increase employee retention. In the world of employee retention, though, even 17% of your workforce feeling that way can lead to a loss of top talent and knowledge. Nectar recently surveyed 1,000 employees in the United States to uncover some new statistics on employee turnover and retention.
Employees Who Feel Valued are 63% Less Likely to Be Looking for a New Job.
Retention is a cornerstone of workforce productivity and organizational success. Employee retention is essential for organizational stability and growth. HIGH5 is a strengths test to unlock the full potential of individuals, teams and organizations by identifying and maximizing what motivates and energizes them. Organizations that succeed will be those that build loyalty, encourage purpose, and stay adaptable.
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)
- Many employees leave within short time spans after considering new opportunities.
- According to BambooHR’s 2023 report, companies have 44 days to convince new employees to stay.
- As a result, our attrition rate is at 6% annually which is one of the lowest in the industry.”
- For 43% of the employees we surveyed, believing in the company’s core values was very important.
- The “talent hold” hypothesis suggests organizations with strong cultures and purpose can shift from reactive retention to proactive loyalty.
- Both the quit rate and the number of available jobs are consistent with fluctuations in the economic cycle.
- As a result, there is a good chance that your remaining workforce would have lower employee morale, which could affect their performance.
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Employees who feel they belong and are valued within your organization are less likely to leave. When asked what they expect onboarding to include, 97% consider training on the company’s tools and software important. While 86% of surveyed workers prefer having some time to ramp up, over one-third (36%) express frustration over long onboarding processes that can leave them feeling excluded or bored. Almost two-thirds of workers (62%) say their impressions of their employers from the first day at work are still accurate.
Employee Turnover And Retention Statistics For 2025
Because of all the layoffs we’ve experienced in the last few years, it’s no wonder many employees are worried about their job security. Around 1 in 3 employees surveyed worry about their job security in their current role. employee retention statistics Nearly 1 in 3 employees we surveyed shared that their companies have experienced a layoff in the last three months. Companies of all sizes have struggled with employee turnover and retention for the last few years.
Financial Impact and Profitability Statistics
These reasons make people quit about four times more often than leaving just for better pay or benefits, emphasizing how employee engagement and workplace environment are crucial to retention. While pay and benefits remain important, this lower percentage reveals that other factors, like culture and wellbeing, more frequently drive employee turnover despite common assumptions. Nearly half of employee turnover results from issues employers could address, such as a lack of engagement, poor manager relationships, or inadequate feedback.
Surprising Employee Retention Statistics of 2025
While this has died down significantly in the last few years, companies are still dealing with the pull of in-office vs. remote work. At the height of the pandemic, nearly 22% of jobs included some amount of teleworking. As we’ve found, insecurity at work bleeds into other spaces, such as looking for other opportunities. Zooming out, certain industries are dealing with more job insecurity than others. Of the people worried about job security, 71% plan to look for new work in the next three months. When team members leave so abruptly, it can lead to survivor’s guilt and a deeper worry about security.
This finding underscores the importance of fostering a positive workplace culture and providing employees with opportunities for growth and engagement. And analyzing these metrics for retention can help inform strategies that reduce turnover and create a more engaged workforce. Read on for information on what employee retention statistics are, why they matter, and 13 employee retention statistics to know in 2025. These findings reinforce that work-life balance and flexible arrangements are https://towneyllc.com/2022/03/22/where-does-the-interest-paid-on-bank-loans-get/ integral to modern employee retention strategies. Among surveyed HR leaders, 43% are focused on maintaining competitive salary and benefits, while 38% are investing in recognition programs to improve employee retention and reduce turnover.
Companies that fail to offer such possibilities may lose talent to competitors who embrace remote work policies. Remote work reduces commute times, increases flexibility, and enhances work-life balance, all key factors boosting employee satisfaction. By making these investments, businesses can foster a motivated, committed, and long-term workforce that will drive growth and success well into the future. In 2025, it’s about understanding and adapting to the evolving needs and expectations of the workforce. It’s not just about providing a paycheck—it’s about delivering a benefits package that aligns with employee needs and priorities. Organizations that offer competitive compensation packages have a distinct advantage regarding retention.
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.
By comparison, less than a quarter of older generations would consider leaving over potential job cuts. However, the rate remains consistent across the different genders and ethnicities. That’s why it can be helpful to break down statistics by factors like age, gender, and ethnicity. Diverse groups have distinct needs and preferences when it comes to their jobs. Google, Microsoft, and Meta were among the businesses that downsized their workforce. In an interview with GameRant, expert Hiroki Okamoto said he believed the gaming company’s success was due to its reputation.