16 Employee Retention Statistics to Know in 2025

Retention statistics highlight workforce trends, employee satisfaction levels, and potential areas for improvement. And analyzing these metrics for retention can help inform strategies that reduce turnover and create a more engaged workforce. Voluntary turnover, where employees leave by choice, has stabilized or dropped for most organizations, pointing to effective employee retention strategies at work.

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Send out a survey and then actually implement the benefits that are the most popular. An employee’s first day is their first impression of your business, and the opinions they form during their first day, week, or month will shape their future mindset of your company. The margin of sampling error for results focused on this group is ±5 percentage points at the 95% confidence level. This evidence underscores a potential opportunity to cut preventable turnover nearly in half with targeted coaching conversations that help employees see a meaningful future with their organization. When employees decide to voluntarily leave their job, the decision often happens quickly.

Q: What are the top reasons employees leave their jobs in 2025?

It is represented by a simple statistic of the people who stayed with the company over a specific period versus those who left. For example, an annual retention rate of 80% means that the company retained 80% of its employees during the previous year, while the remaining 20% left. Businesses with highly engaged employees consistently outperform those with low engagement levels. Research shows there is a 23% difference in profitability between highly engaged teams and those with low engagement. This can be attributed to the fact that higher employee engagement correlates with lower absenteeism, lower turnover, and improved customer satisfaction. Overall, workplaces with strong employee engagement can expect to enjoy improved teamwork, innovation, and overall job performance.

Why is employee retention necessary for businesses in 2025?

That said, a ballpark figure that many companies shoot for is a retention rate of 90%, which translates to a turnover rate of about 10%. It can bob and weave based on a variety of factors, like the norms in your industry, the pulse of the economy, and even your company’s rate of internal promotions. So, while 10% is a good starting point, it’s essential to keep your finger on the pulse of these other elements too.

• With this information, it’s clear that centering your retention strategy around employee engagement is the best path to take.
• A high turnover rate can be a red flag, signaling a host of potential issues within your company.
• To better retain your employees moving forward, you need to keep a pulse on their perceptions.
• Employee retention statistics can help you understand the complex reasons why people leave jobs.
• Staff turnover in the paints & coatings industry have been influenced by several factors, again driven by the high demand for skilled talent, economic pressures, and the evolving nature of work environments.

Turnover Statistics by Industry

It was more likely that employees had such discussions with their coworkers than their managers. The findings highlight the need for managers to regularly initiate the right conversations with their employees to retain them rather than waiting for them to express discontent and the possibility of leaving. In addition to the reasons that push employees to leave, we should also take into account the reasons that motivate them to stay. As 2025 quickly unfolds, there are several employee retention stats that you need to keep in mind. These numbers are very interesting, as they prove that salary is definitely not the most important aspect of employee retention and motivation.

• Stats further show that businesses lose just under a fifth (18%) of their workforce.
• Cultivating a culture of engagement can greatly improve retention rates within your organization.
• Considering just one in four employees would recommend their organization as a great place to work, this lack of loyalty shouldn’t come as a surprise.
• To be proactive in your retention efforts, leaders need to conduct stay interviews and exit surveys regularly.
• Organizations should regularly conduct a compensation analysis to ensure fair, equitable, and market-rate compensation practices.
• Such perks can have a positive impact on employee morale and engagement, ultimately helping to reduce employee turnover rates.

Here, we’ll look at the state of employee retention across different business types. 57% of business leaders think a poor economy will stop their employees from looking elsewhere for jobs. Less than a quarter of those in management roles feel valued or supported by their companies. Recognising and addressing potential issues early can prevent costly turnover and create a more engaged, satisfied workforce.

Start by prioritizing competitive pay and benefits, as 82% of employees consider leaving for better compensation. Utilizing advanced tools helps you understand job retention statistics and employee turnover during conducting effective turnover analysis. Moreover, offering career development programs nurtures employee loyalty and satisfaction. In the domain of retaining talent, compensation and benefits play a critical role in employee satisfaction and decision-making. Engagement and workplace culture likewise play significant roles, as a positive environment can greatly influence an employee’s decision to stay. Comprehending employee retention trends is vital for organizations aiming to cultivate a stable workforce.

The Work Institute’s Retention Report from 2017 revealed that 75% of employee turnover causes can be prevented. Stats show that employers can improve the staff retention rate by changing employee roles within the same company. Employees don’t just leave for higher salaries—they leave because they don’t feel valued, supported, or challenged. Organizations that invest in competitive pay, career growth, recognition, flexibility, and strong leadership will see lower turnover and higher engagement.

The majority of employees say their company needs to do more to increase diversity

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. This allows employees to learn new skills and become attractive to other employers, which can be a good selling point when you start recruiting to fill the position. The longer an employee stays with a company, the more they adopt its core values. This strengthens the company culture, which has a positive impact on the perceptions, preferences, and behaviors of the rest of the organization. Overall, more employees have a positive relationship with their peers compared to managers.

This retention statistic shows a stark contrast in employee tenure across age groups, reflecting how younger workers tend to have shorter employment durations. Younger generations often seek career development opportunities and flexible work arrangements, influencing retention rates. Nearly 50% of people have quit jobs because they feel underappreciated by managers. On the flip side, employee recognition lowers voluntary turnover by 31%, increases engagement by 40%, and increases productivity by 14%. Employee retention rates are what sets apart a successful organization from one whose future is looking uncertain. Specifically, they are responsible for taking care of paperwork, conducting exit interviews, scheduling final payments, and transferring responsibilities, among others.

Engagement Dropped 5 Percentage Points for Managers Under 35

To obtain accurate results, define your objective and timeframe, focusing on specific employee groups. If you don’t make a good first impression and engage team members early on, your high-performing new hires are likely to be concerned and start looking for their next move. Get more insight into effective onboarding practices in our Ultimate 7-step Guide. Turnover rate is often used interchangeably with retention rate, which is understandable because they are two different sides of the same coin.

Aside from the cost of onboarding, companies invest in ongoing training, management oversight, and other similar activities. The less you need to train new hires, the less you can spend on onboarding and basic training. A great benefit is that, if less budget is spent on training, more resources can be allocated to upskilling and reskilling your top talent. 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. Your company’s mission statement is an essential piece of the puzzle for employees.

Companies that want to be successful and create a loyal workforce need to employee retention statistics recognize the value that each and every employee brings to the organization and reward them accordingly. Receiving recognition makes employees feel valued, reassuring them that if they go the extra mile, their efforts will be appreciated. Starting a new job can be challenging, especially if the new employee doesn’t receive adequate support from their new environment. While you may hire candidates with the right skills and experience, it’s still essential to introduce them to the specific processes and tools that your company uses. Without this guidance, they might feel uncertain about their performance and take longer to reach the productivity levels of their colleagues.