35 Employee retention statistics that might surprise you [2026 update]

23 Feb 2024 · 7 MIN READ

Updated: June 2026

Hiring top talent and high-performing employees is the lifeblood of any company. At Perk, we understand how important it is to hire the right staff and keep them. The last few years have seen various industries experience a shake-up in their workforce, impacting employee turnover and retention rates. Below, we dig into exactly what employee turnover and retention are and what they mean for companies’ bottom line.

What is employee retention and turnover?

Employee retention is the rate at which companies and organizations keep their staff . It’s usually recorded as the percentage of full-time employees with a certain length of time at the same company. This is then taken as a portion of the overall staff. So, if a company has an employee retention rate of 75%, it means that 75% of their workforce has been in post for more than one year.Employee turnover is the other side of the coin. It refers to the number of employees who leave a company over a certain time period - usually a year. This covers all staff departures, from voluntary turnover - including retirees and resignations to involuntary turnover, such as layoffs. Seeing specific metrics and employee turnover trends can be particularly helpful to companies as an indicator of their management effectiveness. It can also help improve their employees' experience.

What is a good employee turnover rate, and why is it so important?

For jobs with in-demand skills or positions where training and recruitment are lengthy and costly, high turnover can quickly become a problem. High-performing employees with niche skills or strong customer relationships can also be particularly difficult to replace, making the hiring process lengthy and laborious. In a fast-paced business environment, the old adage ‘time is money’ holds true. That's why understanding the drivers behind employee turnover can help you with employee retention, boost employee performance, and ultimately save time and money for your business.Generally, a good employee turnover rate is considered to be around 10% annually , and employee retention should be between 87% and 90%. Some industries have higher employee turnover rates than others. For example, the hospitality industry tends to have a turnover rate higher than the national average. There’s always room for improvement regarding employee retention and turnover. So, we’ve put together some surprising statistics for managers and human resources professionals to give you insight into the current state of employee retention and turnover and how companies can improve their rates.

Losing employees costs more than you might think

A survey from SHRM estimated that job replacements cost roughly six to nine months of salary for many roles, while Gallup puts the full range at 50% to 200% of annual salary depending on the role. So if an employee earns $100k, replacing them could cost anywhere from $50,000 to $200,000. ( SHRM ) ( Gallup )
US training expenditures increased nearly 5% to $102.8 billion in 2025, according to Training Magazine's 2025 Industry Report. ( Training Magazine )
Last year, companies spent an average of $874 per learner, up from $774 in 2024. ( Training Magazine )

Aside from the financial costs of a high employee turnover rate, other factors that are harder to measure can occur when team members leave for a new job. If a company has a persistently high turnover rate, it can damage employee morale and, in turn, lower productivity and make it harder to attract the best talent.

Not all industries have equal employee turnover rates

In December 2025, the total employee separation rate was 3.3%. ( BLS Jolts )
In March 2026, within total separations, quits stood at 3.2 million while layoffs and discharges were 1.9 million. That puts quits at roughly 60% of separations and layoffs at around 35%. ( BLS Jolts )
The industry with the highest turnover rate is retail and wholesale, at 26.7%, according to Mercer's 2025 US Turnover Survey. Leisure and hospitality follows closely, with monthly separation rates consistently above 5%. ( Mercer )
Other sectors with higher turnover rates are construction (4.1%), the retail trade (4.3%), and real estate (2.6%). ( BLS Jolts )
Government total separations rate was 1.4% in December 2025. ( BLS Jolts )

Top causes of employee turnover

A high turnover rate is a big issue for companies. That’s why 89% of HR leaders now rank retention as their top priority, according to Second Talent's 2026 employee retention research.There are lots of factors that lead employees to take the decision to leave their current employer and increase the annual turnover rates. Naturally, there will always be reasons for employees to move on. However, these main drivers of voluntary turnover show there are things employers can do to ensure that they don't have to find new employees unnecessarily.

More than half of the US workforce (55%) is experiencing burnout, according to the Eagle Hill Consulting Workforce Burnout Survey 2025, conducted among over 1,400 US employees in November 2025. ( Eagle Hill Consulting )
Employees who do not feel adequately recognised are twice as likely to say they will quit within the next year, according to Gallup. ( Gallup )
61% of people would reject a job offer if it would negatively impact their work life balance, and 48% would quit their current position if work responsibilities prevented them from enjoying their lives. ( Deskbird )
Gallup research consistently finds that 50% of employees who quit do so because of management. ( Gallup )

How to reduce employee turnover statistics and boost employee retention

Research from Harvard Business Review shows there are several reasons employees will be motivated to stay with a company longer. These range from career development opportunities to job satisfaction and company culture. Understanding these factors gives managers an idea of how to improve the employee experience.Below are employee retention statistics that shed light on the initiatives that HR professionals can instigate to keep hold of your best team members, enhance their career advancement opportunities, and increase employee satisfaction and wellbeing retention rate.

Over half of employees say they are more likely to stay when employers provide professional development and upskilling opportunities (57.4%) and clear advancement paths (54.8%), according to iHire's 2025 Talent Retention Report. ( iHire )
Employees who make an internal career move have a 75% likelihood of staying, compared to just 56% for those who remain in the same role. ( LinkedIn )
McKinsey research found that 70% of employees say their sense of purpose is defined by their work. The 63% wanting more meaning figure also comes from this same report and is still widely cited as current. ( McKinsey )
Furthermore, employees who feel their purpose is aligned with their organisation's purpose show stronger engagement, heightened loyalty, and are about half as likely to go looking for a new job. ( McKinsey )
Remote work is an important part of company culture to boost wellbeing. 52% of employees said that flexible work policies will impact whether they stay at their organizations. A positive onboarding program for new hires can also help. 69% of employees who undergo a well-managed onboarding process have a more positive view of their work environment and will stay with their company for at least three years. ( SHRM ) ( Pew Research Center)
Recognition was cited by 50.2% of employees as a key factor in their likelihood to stay, alongside professional development at 57.4%. ( iHire )
LinkedIn data shows employees stay 41% longer at companies with high internal mobility than at companies with low mobility, regardless of what those companies pay.

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In summary, for companies to be competitive, HR leaders need to attract, hire, and retain the most high-performing employees with robust employee retention strategies.Offering flexibility, career development, a purposeful mission, and a work environment that encourages employee wellbeing can help boost your retention and prevent your top talent from becoming job seekers!