Without knowing industry statistics, it’s hard to benchmark whether trends and patterns in your organization are the norm or alarming. And when it comes to your company’s ability to keep its employees and reduce employee turnover, you want to get it right. Read on for information on what employee retention statistics are, why they matter, and 13 employee retention statistics to know in 2025.
What Are Employee Retention Statistics?
Employee retention statistics refer to data that measure how long employees stay in an organization, the factors influencing their tenure, and the impact of retention strategies. These insights help companies shape policies that improve workforce stability.
Why Do Employee Retention Statistics Matter?
Retention statistics highlight workforce trends, employee satisfaction levels, and potential areas for improvement. Analyzing these numbers informs strategies that reduce turnover and create a more engaged workforce.
Must-Know Employee Retention Statistics
Consider the following important retention statistics to prevent turnover at your organization:
1. 51% of U.S. employees are watching opportunities or actively seeking new jobs.
According to Gallup, more than half of employees are considering leaving their jobs. This means self-reported employee turnover risk is the highest it’s been since 2015. Employers must up their game when it comes to corporate culture and benefits to retain valuable staff.
2. 42% of employee turnover is preventable.
Gallup survey data shows 42% of employees who voluntarily left their organization in the past year report that their manager or organization could have done something to prevent them from leaving their job. Furthermore, 45% of voluntary leavers report that neither a manager or company leadership discussed their job satisfaction, performance, or future at the organization with them in the three months before leaving. Managers should consistently be in conversation with their reports about performance, goals, and job satisfaction.
3. Replacing an employee could cost up to 200% of their salary.
The cost to replace employees, according to Gallup, is:
- 200% of a leader or manager’s salary
- 80% of salary for technical roles
- 40% of salary for frontline workers
Given the cost of turnover, an investment in employee retention strategies, like professional development or recognition, pays off.
4. 71% of employees would be less likely to leave their organization if they were recognized more frequently
This is according to a Nectar survey. If employees don’t feel valued, they’ll likely have a foot out the door. Paycor’s Recognition Tool, part of our Talent Development software, allows managers and employees to recognize great work, celebrate accomplishments, and inspire colleagues.
Employee Engagement and Retention Stats
Additional statistics on employee retention, including reasons employees stay or go, include the following:
5. The theme of engagement and culture is the most prominent (37%) reason employees leave workplaces.
Gallup grouped the top reasons employees leave jobs into categories and found engagement and culture to be at the top of the list. Reasons grouped under engagement and culture include:
- Advancement, development and career opportunities
- Work is no longer interesting
- Workplace culture
- Unrealistic job expectations
This finding underscores the importance of fostering a positive workplace culture and providing employees with opportunities for growth and engagement. Employers should focus on clear career development paths, realistic job expectations, and a supportive work environment to retain top talent and reduce turnover.
6. Employees who have been with a company for two years or less are 38% more likely to quit in the next 12 months.
Newer employees pose the biggest flight risk, according to Paycor statistics. To buck the trend, ensure a rich onboarding experience and pair new employees with a seasoned mentor.
7. Internal mobility boosts retention.
According to a recent LinkedIn Workforce Learning Report, employees who have made an internal move in an organization have a 75% likeliness of staying, compared to 56% for employees who haven’t made an internal move.
Meet with employees regularly to discuss their career goals, and map their career path so they know their next step and how to get there.
Employee Retention Rate Statistics
Read on for more insight into why employees depart their companies.
8. Gallup data shows pay and benefits is the most common single reason employees left their job in 2024.
Organizations should regularly conduct a compensation analysis to ensure fair, equitable, and market-rate compensation practices. This requires a lot of heavy lifting, so it’s best to invest in a firm or tool to assist. Paycor pay benchmarking enables employers to quickly compare their salary ranges with similar roles and industries.
9. Only 25% of U.S. employees would recommend their organization as a great place to work.
This Gallup statistic means three-quarters of employees don’t consider their company a great place to work. When employees are unwilling to recommend their workplace, it typically indicates deeper organizational issues that directly impact retention.
To address this issue, employers should focus on improving workplace culture, communication, and employee experience through competitive benefits and supportive leadership.
10. Nearly seven out of 10 U.S. workers would quit their jobs over a bad manager.
The old adage about employees leaving bad managers, not bad jobs, rings true according to this statistic based on LinkedIn’s 2024 Workforce Confidence Survey. To prevent this from happening at your organization, offer managers regular leadership training that empowers them to better support their reports.
Employee Retention Stats on Retaining Employees
Boosting retention rates requires insight into what employees value.
11. 59% of Gallup survey respondents say greater work-life balance and personal wellbeing are a very important attribute for their next job.
To promote work-life balance and personal wellbeing, consider offering flexible work arrangements or new wellness benefits, like free lifestyle coaching, gym memberships, or meditation app subscriptions.
12. The most important factors for staying at a job are flexible schedule, salary and benefits, and company culture.
A Paycor survey of 7,000+ HR, finance, and IT pros asked for the most important reasons employees stay at their job. The breakdown of the top three reasons was:
- Flexible schedule: 15% — Allows employees to maintain a better work-life balance, reducing burnout and increasing productivity.
- Salary and benefits: 14% — Ensures financial security and demonstrates that the company values its workforce.
- Company culture: 14% — Shapes the overall work environment, fostering engagement, collaboration, and job satisfaction.
Organizations that prioritize these elements create a more motivated and committed workforce, leading to higher retention rates and a stronger employer reputation.
13. Companies that champion career development are 67% confident in their ability to retain qualified talent.
This is 17% higher than organizations that don’t invest in career development, according to LinkedIn Learning. Give your employees opportunities to learn and develop their careers, either through tuition assistance, in-house seminars, or conference registrations.
What Employee Retention Statistics Are Saying
The 2025 employee retention landscape reveals a turning point for organizations. 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. The most striking insights show that employees are leaving not just for better pay, but for more compelling reasons — including poor workplace culture, lack of career development, and ineffective management.
The stakes are high, with replacing an employee potentially costing up to 200% of their salary. Successful retention now hinges on creating holistic work environments that prioritize flexible schedules, competitive compensation, strong company culture, and genuine career development opportunities. Organizations that can address these multifaceted needs will be best positioned to retain top talent in an increasingly competitive job market.
Analyze Employee Retention Data with Paycor
Paycor HR Analytics Software provides valuable workforce insights into headcount, resignations, retention, compensation, and more. By analyzing past data, the software can even predict turnover rates and specific employees at-risk for resignation, so your organization always stays one step ahead.
Paycor also has robust features to build winning cultures, recognize employees for their hard work, and offer professional development opportunities — all of which can reduce costly and disruptive turnover.
Take a guided product tour to learn more.