Employee retention has become one of the most important challenges facing HR leaders today. With significant costs associated with replacing employees and mounting pressure to maintain workforce stability, it’s important to stay up to date with current employee retention data.
To help you do just that, this article highlights 28 employee retention statistics for 2026 and offers insights that can help you build a more stable, engaged workforce.
What Are Employee Retention Statistics?
Employee retention statistics are data points that measure how well organizations keep their employees over time, usually pointing to other employee retention metrics, such as retention rates, turnover rates, and tenure average.
Retention statistics also help businesses understand patterns in workforce stability, identify areas for improvement, and benchmark their performance against industry standards.
These statistics encompass various dimensions of the employee experience, from compensation and benefits to workplace culture and career development opportunities.
Why Do Employee Retention Statistics Matter?
Employee retention statistics matter because they directly affect your organization’s bottom line, productivity, and competitive advantage.
High turnover rates drain resources through recruitment costs, training expenses, lost productivity, and institutional knowledge. According to recent studies, the replacement of leaders and managers costs around 200% of their salary, the replacement of professionals in technical roles is 80% of their salary, and frontline employees 40% of their salary (Gallup).
Beyond financial implications, employee retention statistics reveal the health of your workplace culture and employee satisfaction. They can help you discover warning signs before they become crises, and they help you implement proactive retention strategies. The organizations with strong retention rates have a significant advantage in maintaining operational continuity and building a reputation as an employer of choice.
Must-Know Employee Retention Statistics
The following statistics paint a clear picture of the current state of employee retention and highlight the challenges organizations face in keeping their best talent.
1. 42% of Voluntarily Exiting Employees Say Their Manager or Organization Could Have Prevented Their Departure
Nearly half of employees who leave a company voluntarily believe their departure was preventable (Gallup). This statistic reveals a critical gap between employee needs and organizational response. Employees are signaling their concerns and dissatisfaction, but managers often miss these warning signs or simply don’t take meaningful action.
This preventability factor underscores the importance of manager training and communication. Regular check-ins, addressing concerns promptly, and creating open channels for feedback can positively affect retention. The data suggests that many departures aren’t inevitable, they’re the result of unaddressed issues that accumulate over time.
2. 51% of U.S. Employees Are Watching for or Actively Seeking a New Job
More than half of U.S. employees are keeping an eye on LinkedIn or actively seeking a new job, continuing a recent upward trend (Gallup).
Self-reported employee turnover risk at its highest point since 2015. While voluntary employee turnover rates have stabilized since the Great Resignation due to cooling economic and job markets, employees’ long-term commitments to their organizations are currently the lowest they have been in nine years.
This statistic should be a significant warning sign for organizations. Even if employees haven’t actively started job searching, the fact that they’re “watching” the market indicates decreased loyalty and increased flight risk.
3. 45% of Departing Employees Had No Manager Conversation About Their Future in the Final Three Months
Nearly half of voluntary leavers report that neither a manager nor another leader proactively discussed their job satisfaction, performance, or future with the organization in the three months before leaving (Gallup). This number represents a massive missed opportunity for intervention.
Of those whose manager or leader did engage with them in the three months before leaving, fewer than three in 10 had a conversation about the future of their career with the organization or their job satisfaction. This lack of communication creates an environment where problems fester unaddressed until the employee finally decides to leave.
4. 77% of Voluntary Leavers Either Left Within Three Months of Searching or Didn’t Actively Search
When employees decide to voluntarily leave their jobs, the decision often happens quickly (Gallup). More than three in four voluntary departers either left within three months of searching for a new job or did not actively search for new employment in the first place.
This statistic reveals that by the time an employee starts actively job hunting, it’s often too late to keep them. Organizations must focus on proactive engagement rather than reactive retention efforts.
5. Replacement Costs Range From 40% to 200% of Salary Depending on Role Level
Replacing leaders and managers costs around 200% of their salary, the replacement of professionals in technical roles is 80% of their salary, and frontline employees 40% of their salary (Gallup). These costs include direct expenses like recruiting, interviewing, and training, plus indirect costs such as lost productivity, reduced team morale, and the time required for new hires to ramp up to full effectiveness.
The financial impact of turnover makes retention initiatives not just an HR priority but a significant business imperative. Even modest improvements in retention rates can generate substantial cost savings and ROI.
Employee Engagement and Retention Stats
Employee engagement and retention are inextricably linked. Engaged employees are more productive, more committed, and far less likely to leave. These statistics illuminate what keeps employees connected to their work and their organizations.
6. Only 23% of the Global Workforce Is Engaged
Gallup’s State of the Global Workplace 2025 Report reveals that only 21% of employees globally are classified as engaged (Gallup), costing the global economy $438B in lost productivity. This means most workers—79%—are either not engaged or actively disengaged, a concerning reality for organizations trying to build committed, high-performing teams. Manager disengagement greatly contributed to the situation, with engagement falling from 30% to 27%. Young and female managers experienced the largest declines.
This low engagement rate represents both a challenge and an opportunity. Organizations that successfully move employees from disengaged to engaged can expect improvements not just in retention but across nearly all performance metrics.
7. U.S. Employee Engagement Hit an 11-Year Low in 2024
U.S. employee engagement in on a downward trajectory, falling to its lowest level in 11 years (Gallup). This decline signals a troubling trend for organizations already struggling with retention challenges. The gap between current engagement levels and what’s possible highlights significant room for improvement through better management practices, clearer communication, and more meaningful work experiences.
When engagement drops, turnover risk rises, making this trend particularly concerning for HR leaders focused on retention.
8. Well-Recognized Employees Are 45% Less Likely to Turn Over After Two Years
A study tracking nearly 3,500 employees from 2022 to 2024 found that well-recognized employees are 45% less likely to have turned over after two years (Gallup–Workhuman) This demonstrates the powerful connection between recognition and retention outcomes over time.
Recognition isn’t just about making employees feel good, it’s a strategic retention tool with measurable, long-term impact. Organizations that get it right and consistently acknowledge and appreciate employee contributions see dramatically better retention outcomes.
9. Employees Receiving High-Quality Recognition Are 65% Less Likely to Be Job Hunting
Gallup and Workhuman also found that employees currently receiving high-quality recognition (fulfilling at least four pillars of strategic recognition: meeting employees’ recognition expectations, authentic, personalized, equitable, embedded into company culture) are 65% less likely to be actively looking or watching for another job opportunity compared with those receiving lower-quality recognition.
This statistic highlights that not all recognition is created equal. High-quality, strategic recognition that is frequent, authentic, specific, and aligned with company values has the greatest impact on retention.
9. Only 22% of Employees Say They Get the Right Amount of Recognition
Despite the undeniable impact of recognition, Gallup and Workhuman showed that a mere 22% of employees say they get the right amount of recognition for the work they do—a figure that remained unchanged from 2022 to 2024. This gap between the importance of recognition and its actual practice represents a major opportunity for organizations.
While leaders are increasingly acknowledging the importance of recognition, employees are not feeling the effects. This disconnect suggests that organizations need to move beyond talking about recognition to implementing meaningful recognition programs.
10. Organizations With High Engagement Experience 21–51% Less Turnover
Gallup research shows that organizations with high engagement experienced 21% less turnover for high-turnover organizations and 51% less turnover for low-turnover organizations. An organization with high employee engagement sees many benefits, including better financial performance, a healthier work culture, and greater retention.
If you’re experiencing high turnover, examining employee engagement through annual engagement surveys and more frequent pulse surveys can help you understand how employees feel about working in your organization and identify specific areas for improvement.
11. 69% of the Reasons Employees Leave Relate to Engagement, Culture, and Work-Life Balance
Gallup’s State of the Global Workplace report found that issues related to “engagement and culture” and “well-being and work-life balance” account for 69% of the reasons employees leave, far outweighing pure pay or benefits concerns. This doesn’t mean salary can be ignored, of course, but it does mean that fixating on pay alone is insufficient.
Employers must address the less tangible drivers of turnover, like culture, growth, and management quality, to truly stem the tide of departures.
Employee Retention Rate Statistics
Understanding why employees leave and the patterns of turnover helps organizations develop targeted retention strategies. These statistics shed light on the factors driving employees out the door.
12. Average Voluntary Turnover Rate in the U.S. Is 13.5%
According to Mercer’s 2025 Workforce Turnover Survey, the average voluntary turnover rate in the U.S. is 13%, continuing a multi-year decline from 13.5% in 2024 and 17.3% in 2023 (Mercer). While this suggests that fewer employees are leaving their jobs compared to previous years, turnover still remains a challenge in certain industries and job levels.
Understanding these benchmarks helps organizations assess their performance and identify whether they’re experiencing higher or lower turnover than industry averages.
13. Retail and Wholesale Industries Have the Highest Turnover at 26.7%
Mercer’s research reveals that the Retail and Wholesale industries have the highest turnover at 26.7%, indicating ongoing instability and high employee movement. This nearly doubles the national average and highlights the unique retention challenges facing these sectors.
Organizations in high-turnover industries must be particularly strategic about their retention initiatives, as the costs of constant turnover can significantly affect profitability and operational effectiveness.
14. Voluntary Quits Declined From 43.3% in 2023 to 38.5% in 2024
According to iHire’s 2024 Talent Retention Report, which surveyed over 2,000 U.S. workers and employers, voluntary quits have declined from 43.3% of workers in 2023 to 38.5% in 2024 (iHire). This shift suggests that employees are choosing to stay at companies longer, potentially signaling a transition from the “Great Resignation” to the “Great Stay.”
Of course, this doesn’t mean retention challenges have disappeared—it simply means the dynamics have shifted. Organizations must remain vigilant about engagement and satisfaction to maintain this trend.
15. 32.4% of Employees Who Quit Cite Toxic Work Environment as the Leading Reason
The iHire 2024 Talent Retention Report found that the leading reason employees choose to leave a job is a toxic or negative work environment (32.4%), followed by poor company leadership (30.3%), and dissatisfaction with a manager or supervisor (27.7%). Surprisingly, unsatisfactory pay ranks sixth at 20.5%, just behind poor work/life balance at 20.8%.
This suggests that employees often prioritize a healthy work environment, strong leadership, and positive relationships with managers over salary, underscoring the importance of culture in retention.
16. Nearly 70% of U.S. Workers Would Quit Their Jobs Over a Bad Manager
According to LinkedIn’s 2024 Workforce Confidence Survey, nearly seven out of 10 U.S. workers said they would quit their jobs over a bad manager (LinkedIn). Millennials are the most likely to leave their jobs over bad management, with Gen-Zers right behind them.
This reinforces the old adage that “people don’t leave jobs, they leave managers.” Organizations must invest in manager training and development, teaching managers how to build trust, communicate effectively, provide meaningful feedback, and support their team members’ growth.
17. Only 12% of Employees Strongly Agree Their Organization Does Great Onboarding
Gallup’s research has also found that only 12% of employees strongly agree that their organization does a great job onboarding new employees. This represents a massive gap between what organizations believe they’re providing and what employees actually experience.
Given that effective onboarding is one of the strongest predictors of long-term retention, this statistic highlights a critical area for improvement across most organizations.
18. 33% of Turnover Occurs Within the First Year
Research shows that one third of employee turnover happens within the first year of employment (Work Institute). This early turnover is particularly costly because organizations have already invested significant resources in recruiting, hiring, the onboarding and training processes, yet see no return on that investment.
This statistic underscores the importance of a solid onboarding experience. The first weeks set the tone for an employee’s entire tenure, and when new hires don’t receive the support, clarity, and connection they need, they become disillusioned.
19. Hospital Turnover Rate Is 19.5%; Nurse Turnover Is 27.1%
The national turnover rate at hospitals is 19.5% in 2024, while for nurses specifically, the turnover rate is 27.1% (Bucketlist Rewards), significantly higher than many other industries.
Healthcare organizations face unique retention challenges due to demanding work conditions, burnout risk, and competitive labor markets for skilled clinical staff. For a 500-bed hospital, reducing registered nurse turnover by 5% can save $3.M annually.
Employee Retention Stats on What Makes Employees Stay
While much retention data focuses on why employees leave, it’s equally important to understand what makes them stay. These statistics highlight the factors that build lasting employee commitment.
20. 94% of Employees Would Stay Longer If Their Company Invested in Career Development
According to LinkedIn research, 94% of employees would stay at a company longer if it invested in their career development (LinkedIn). This overwhelming majority indicates that career development isn’t a nice-to-have perk, it should be an essential component of every company’s retention strategy.
This statistic should prompt organizations to evaluate their training programs, mentorship opportunities, and career pathing initiatives. Employees want to grow, and if they can’t advance within their current organization, they’ll look elsewhere.
21. Companies With Strong Learning Cultures Show 57% Retention Rate
LinkedIn’s 2024 Workplace Learning Report found that companies with strong learning cultures show a 57% retention rate, compared to only 27% for companies with moderate learning culture (LinkedIn). This more than doubling of retention rates demonstrates the extraordinary impact that prioritizing learning and development can have on keeping employees.
Organizations that deliberately cultivate strong learning cultures—where continuous development is valued, resourced, and integrated into daily work—see dramatically better retention outcomes.
21. Companies With Strong Learning Cultures Have 23% Higher Internal Mobility
The same LinkedIn research shows that companies with strong learning cultures also experience 23% higher internal mobility. Internal mobility—when employees move to different roles within the same organization—is a powerful retention driver because it provides growth opportunities without requiring employees to leave.
When employees can see clear pathways to new challenges and responsibilities within their current company, they’re far more likely to stay for the long term.
23. Employees at Organizations with Strong Internal Mobility Stay 2x Longer
LinkedIn’s data also reveals that employees at organizations with strong internal mobility stay approximately twice as long—5.4 years versus 2.9 years at organizations without strong internal mobility. This twofold increase in tenure has enormous implications for retention costs and organizational knowledge preservation.
Companies that create systems and cultures supporting internal movement retain employees longer and build deeper benches of talent with cross-functional expertise.
24. 7 in 10 Say Learning Improves Their Connection to Their Organization
LinkedIn’s 2024 Workplace Learning Report found that 7 in 10 people say learning improves their sense of connection to their organization, while 8 in 10 say learning adds purpose to their work. These findings help explain why learning is such a powerful retention driver. It addresses fundamental human needs for growth, meaning, and belonging.
Organizations that invest in learning aren’t just building skills; they’re strengthening the emotional bonds between employees and the organization.
25. 15% of Employees at Organizations with Good Culture Are Job Hunting vs. 57% at Organizations with Poor Culture
Among employees rating their organization’s culture as good or excellent, just 15% say they are actively (or will soon be) looking for a new job. On the flip side, 57% of those who rate their organizational culture poorly say they are actively or soon will be looking for another job. (SHRM)
This nearly four-fold difference in retention risk shows that workplace culture isn’t just a buzzword, it’s an important business asset that directly affects whether employees stay or leave.
26. More than 80% of Employees at Organizations with Positive Culture Would Recommend Their Employer
SHRM’s research also shows that for workers who rate their organizational culture highly, more than 8 in 10 employees say they’re likely to recommend their organization to a friend or connection looking for a job. Conversely, for employees at organizations with unfavorable cultures, only 4% say they are likely to recommend their organization.
This 20x difference in recommendation likelihood shows that culture positively influences not only retention but also talent attraction through employee advocacy.
27. 95% of Employees Say Feeling Respected at Work Is Important
The 2023 Work in America Survey found that 95% of respondents felt it is very (66%) or somewhat (29%) important to them to feel respected at work. This near-universal agreement indicates that respect isn’t optional, it’s a fundamental requirement for employee satisfaction and retention (American Psychological Association).
When employees don’t feel respected, they’re far more likely to disengage and eventually leave. Creating a culture of mutual respect, inclusion, and belonging is essential for long-term retention.
What Employee Retention Statistics Are Saying
When we step back and examine employee retention statistics holistically, several clear themes emerge that should guide HR strategy in 2026 and beyond.
- Most turnover is preventable and starts with management. 42% of departures are preventable, and nearly 70% of workers would quit over a bad manager. Manager development, recognition, and regular job satisfaction check-ins are among the highest-impact retention strategies.
- Engagement is retention strategy. Culture, work-life balance, and career development drive 69% of departures, yet only 23% of workers are engaged globally. High-engagement organizations see 21–51% less turnover.
- Growth and recognition are underleveraged. Strong learning cultures retain 57% of employees vs. 27% for moderate ones, and quality recognition makes employees 45% less likely to leave—yet most organizations underinvest in both.
- The first year is make-or-break. A third of turnover happens in year one, but organizations that nail onboarding see 69% of employees stay at least three years.
For HR leaders, these retention statistics above provide both a roadmap and a call to action. It’s clear that the organizations that will thrive are those that listen to what employees are telling them through these statistics and respond with meaningful changes to how they attract, develop, recognize, and retain their people.
How Paycor Helps You with Employee Retention Data
Knowing your employee retention data is just the first step. Then it’s time for tracking and acting on your own organization’s data, which is where real improvement happens.
Paycor’s comprehensive HR software gives you the tools to monitor your employee retention, identify trends before they become problems, and implement data-driven retention strategies.
Our HR analytics capabilities help you spot patterns, benchmark against industry standards, and measure the effect of your retention initiatives. And beyond analytics, Paycor supports the full employee lifecycle with tools designed to improve retention at every stage—from onboarding that curb first-year turnover to performance management systems that facilitate the recognition and development conversations employees crave.
Analyze Your Employee Retention Stats with Paycor
Ready to turn employee retention statistics into retention results? Take a guided tour or explore our 12 HR Trends to Embrace in 2026 article to stay ahead of workforce changes.