1. The Average Turnover Rate in the U.S. in 2023 was 3.8%, with 2.5% Due to Quits and 1% due to Layoffs/Firings.
(Research by the Bureau of Labor Statistics, quoted by Forbes)
This turnover rate reflects both voluntary turnover (employees quitting for new job opportunities) and involuntary turnover (due to layoffs or firings). It highlights the current dynamic in the job market where employers must manage both replacement recruitment costs and retention strategies to mitigate high turnover.
Why This Matters: Understanding the overall turnover rate helps organizations evaluate the combined impact of voluntary and involuntary turnover and set realistic retention goals.
TeamOut Insight: By analyzing detailed turnover data, companies can better tailor employee retention strategies targeting high voluntary turnover segments, such as improving employee engagement and managers’ costs linked to onboarding new hires or replacing valuable talent.
2. Workers aged 55 to 64 have an Average Tenure of 9.9 years, While Those aged 25 to 34 Average Only 2.8 Years.
(Research by the Bureau of Labor Statistics, quoted by Forbes)
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.
Why This Matters: Recognizing tenure differences among age groups allows employers to customize retention strategies, such as career advancement programs for younger workers and engagement tactics tailored for frontline employees.
TeamOut Insight: Employers focused on retaining younger staff should provide targeted professional development and emphasize regular and honest communication to improve satisfaction and reduce turnover early in the employee lifecycle.
3. Nearly 38% of Employees Quit Within the First Year of Employment. Over 40% Leave in the First 90 Days Due to a Lack of Career Development or Poor Work-Life Balance.
(Research by the Work Institute, quoted by Forbes)
This high voluntary turnover rate among new employees underscores challenges in initial retention, often driven by inadequate onboarding processes and limited employee experience support.
Why This Matters: Early-stage turnover inflates recruitment costs and negatively impacts retention rates, making effective onboarding and engagement critical to retain top talent and reduce turnover.
TeamOut Insight: Investing in career development opportunities and flexible work arrangements during the onboarding process can significantly improve new employee retention, focusing on reducing the negative impact of early departures.
4. According to SHRM, 20% of Employee Turnover Happens in the First 45 Days.
(Research by the Society for Human Resource Management (SHRM), quoted by Forbes)
A significant portion of new hires leave quickly, indicating that the initial employee experience and engagement are crucial for retention. Poor onboarding, unclear role expectations, or bad managers often contribute to this early turnover.
Why This Matters: Early turnover creates high managers' costs and recruitment burdens, making retention strategies focused on the first 45 days vital to reduce turnover and maintain valuable talent.
TeamOut Insight: Employers should enhance onboarding with frequent feedback mechanisms and support, emphasizing career development and workplace culture to improve retention rates among new employees.
5. 94% of Employees Say that They Would Stay at a Company Longer if it Invested in Their Career Development.
(Research by LinkedIn for Learning)
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.
Why This Matters: Career development investment strongly influences employee satisfaction and engagement, two critical drivers to retain employees and reduce voluntary turnover.
TeamOut Insight: Organizations that prioritize continuous learning and skill-building effectively improve employee retention rates and retain more employees through meaningful career pathways.
6. More than Half (52%) of Organizations Say Effective Onboarding Improves Employee Retention Rates.
(Research by the Society for Human Resource Management (SHRM), quoted by Forbes)
This statistic highlights how a structured onboarding process reduces early voluntary turnover by helping new hires feel valued, engaged, and supported. Effective onboarding directly influences employee engagement and overall retention statistics.
Why This Matters: Strong onboarding reduces recruitment costs and manager costs related to replacing employees, ultimately improving retention and reducing high turnover risks.
TeamOut Insight: Integrating onboarding programs with career development, regular and honest communication, and team-building activities improves employee experience and retention rates, particularly for frontline employees and top performers.
7. The Bureau of Labor Statistics Shows a Nearly One-to-One Correlation Between the Rate of Quitting and Swapping Employees.
(Research by the Bureau of Labor Statistics, quoted by Forbes)
This correlation means that almost every employee who quits usually takes another job quickly, indicating a direct connection between employees leaving and new employment opportunities. It reflects how turnover and retention are directly related to the overall job market dynamics and employee mobility.
Why This Matters: Understanding this near-equal rate of quitting and job-switching highlights the constant challenge organizations face in retaining top talent and managing recruitment and replacement costs.
TeamOut Insight: Employers aiming to improve retention need targeted retention strategies focused on employee engagement and career advancement, as employees frequently leave for better job opportunities rather than exiting the workforce entirely.
8. Companies with High Retention Rates Experience a 22% Increase in Overall Profitability.
(Research by Gallup)
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.
Why This Matters: Improving employee retention directly benefits an organization's bottom line through sustained productivity and reduced turnover.
TeamOut Insight: Implementing specific employee retention strategies, such as enhancing employee engagement and providing career development opportunities, can create measurable improvements in retention rates and profitability.
(Research by Gallup)
Nearly half of employee turnover results from issues employers could address, such as a lack of engagement, poor manager relationships, or inadequate feedback. Ignoring these factors leads to high turnover despite available retention strategies.
Why This Matters: Preventable turnover drives up recruitment and training expenses unnecessarily, impacting employee satisfaction and retention rates.
TeamOut Insight: Organizations that prioritize regular and honest communication and focus on improving managers’ ability to engage employees can significantly reduce turnover and retain employees longer.
10. 51% of Workers are Actively Seeking a New Job.
(Research by Gallup)
This retention statistic signals a critical risk factor for employee turnover, reflecting how many current employees feel ready to leave their jobs in search of better employment or advancement opportunities.
Why This Matters: High employee turnover risk requires companies to strengthen employee engagement and career development programs to improve employee retention.
TeamOut Insight: Retention strategies should include addressing why employees leave, such as a lack of career advancement or work-life balance, to reduce the number of workers actively leaving.
11. "Pay/Benefits" is the most common single reason employees left their job in 2024, yet it was identified only 16% of the time.
(Research by Gallup)
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.
Why This Matters: Employers focusing solely on compensation might miss key drivers of voluntary turnover, negatively impacting retention rates.
TeamOut Insight: Effective employee retention strategies should balance competitive pay with strong culture and wellbeing initiatives to retain valuable talent.
12. The Biggest Reasons People Leave Their Jobs are Problems with "Engagement and Company Culture" (37%) and Issues with "Well-being and Work-Life Balance" (31%).
(Research by Gallup)
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.
Why This Matters: Retention strategies focusing on improving culture and supporting employee wellbeing can more effectively reduce turnover.
TeamOut Insight: Offering flexible work arrangements and promoting a positive employee experience should be central to retention efforts to keep employees engaged and reduce voluntary turnover.
13. Employees Who Feel Valued are 63% Less Likely to Be Looking for a New Job.
(Research by Gallup)
Feeling valued is a powerful driver of employee retention and job satisfaction, directly reducing turnover rates and improving employee engagement.
Why This Matters: Employee retention improves significantly when organizations foster recognition and provide regular, honest feedback to employees.
TeamOut Insight: Managers play a key role in making employees feel appreciated, which can decrease quit rates and increase overall retention metrics.
(Research by Gallup)
Engaged employees are more likely to stay in their roles, making employee engagement a critical factor in reducing high turnover and the associated costs of replacing employees.
Why This Matters: Improving employee engagement directly contributes to higher employee retention rates and reduces managers’ costs related to recruitment and onboarding.
TeamOut Insight: Organizations that invest in employee engagement initiatives, such as career development opportunities and recognition programs, are more successful in retaining employees.
15. Employees with a Positive Employee Experience are 68% Less Likely to Consider Leaving.
(Research by the Society for Human Resource Management (SHRM)
A positive employee experience encompasses fair management, good culture, and meaningful work, all directly related to retention statistics and turnover reduction.
Why This Matters: Improving the overall employee experience can significantly reduce voluntary turnover, boosting retention rates and employee satisfaction.
TeamOut Insight: Employers should regularly collect feedback and implement retention strategies that enhance the work environment, helping employees feel supported and valued, which reduces the likelihood they will leave.
16. 42% of Employees Who Are Experiencing Negative Work Culture Think About Leaving their Jobs. Only 9% of Workers Who Are Experiencing Positive Work Culture Consider Leaving.
(Research by the Society for Human Resource Management (SHRM)
This stat illustrates how work culture influences employee turnover rates, as toxic environments drive high turnover and increase managers’ costs for hiring and training new hires.
Why This Matters: Employee culture is one of the most critical factors driving employee retention and turnover. Companies must provide feedback, foster inclusion, and address issues like bad managers to improve employee retention strategies.
TeamOut Insight: Organizations that invest in a positive workplace culture, including team-building activities and corporate events, are far more likely to keep valuable talent, minimize training expenses, and reduce the high cost associated with employees quitting. Schedule quarterly pulse surveys to track progress and address emerging cultural issues before they drive new hires/employees to quit.
17. According to the Conference Board, Job Satisfaction Has Risen to 62%, the Highest Since 1987.
(Research by The Conference Board, quoted by Forbes)
Job satisfaction has hit a 37-year high, supported by initiatives in career development, remote work policies, and competitive compensation.
Why This Matters: High job satisfaction is directly correlated with improved employee retention and reduced turnover rate. Satisfied employees stay longer, reducing the costs and disruption of frequent hiring cycles.
TeamOut Insight: Double down on employee listening programs, such as stay interviews and career path workshops, and create visible, actionable responses to employee feedback. Empower managers to discuss and plan individual growth paths with their team members to ensure workers feel invested in the organization’s future.
18. 70% of Employees Aren’t Currently Looking for a New Job, Indicating Improving Retention Trends.
(Research from B2B Reviews, quoted by Forbes)
Seven out of ten employees are not actively seeking new jobs, a strong indicator of effective employee retention strategies in today’s labor market.
Why This Matters: When the majority of workers are content to stay, organizations benefit from less disruption, lower training expenses, and less pressure on hiring pipelines.
TeamOut Advice: Conduct quarterly check-ins to understand why employees choose to stay. Use the results to fortify what’s working, such as offering remote work flexibility or upskilling support, and address pain points. Remember, proactive retention is much less costly than reactive recruitment.
19. 87% of HR Leaders Say They’ve Made Employee Retention Their Number One Priority.
(Research from B2B Reviews, quoted by Forbes)
The overwhelming majority of HR leaders have made employee retention their top strategic objective, driven by the rising costs and risks of high turnover.
Why This Matters: Prioritizing retention unifies leadership, encourages budgeting for recognition and career development, and reduces managers’ costs and operational headaches as employees stay longer.
TeamOut Advice: Set clear, measurable retention metrics and tie them to leadership and manager performance reviews. Invest in leadership coaching and recognition programs; leaders are the primary influence on whether employees quit or stay.
20. Replacing an Employee Can Cost up to 200% of their salary for leaders and managers. Replacing Technical Roles costs 80% of a Worker's Salary, and Replacing Frontline Workers costs 40% of their Salary.
(Research by Gallup)
The financial impact of employee turnover is immense, especially when leaders or technical experts leave, triggering expensive recruitment cycles and lost productivity.
Why This Matters: High turnover causes a negative cascade: increased workloads on remaining staff, lost institutional knowledge, and ballooning hiring and training expenses.
TeamOut Advice: Quantify your real turnover costs by role and share the data with senior leadership. Use this to justify investing in retention programs, such as structured recognition, support for new leaders, and onboarding improvements. Small investments can make a change in retention and culture.
21. Gallup's Data Shows That Well-Recognized Employees Are 45% Less Likely to Have Turned Over After Two Years.
(Research by Gallup)
Effective and personalized recognition is one of the most powerful tools to improve employee retention statistics and lower turnover.
Why This Matters: Consistently recognized employees feel valued, increasing their commitment to the organization and lowering intent to quit.
TeamOut Advice: Implement a structured recognition program, not just for annual awards but for real-time accomplishments. Equip managers with the tools and language to provide genuine feedback in public and private settings. Make recognition part of everyday practice, not a quarterly afterthought.
22. About 33% of Hiring Managers Expect Turnover Rates to Rise, Costing Organizations Roughly $36,295 Annually Per Quit.
(Research by PR Newswire, quoted by Forbes)
A third of hiring managers predict that employee turnover will rise, with a clear, quantifiable price tag attached to every worker lost.
Why This Matters: Rising turnover undercuts morale, continuity, and organizational performance. Every employee who leaves imposes significant and measurable replacement costs.
TeamOut Advice: Examine exit interview data to find actionable patterns. Address recurring themes, like bad manager behaviors, career stagnation, or lack of flexibility, through targeted interventions (manager training, mentorship, remote work policies) and set quarterly goals to reduce actual turnover.
23. According to the Bureau of Labor Statistics, There Were 8.5 Million Job Openings in June 2024 in the U.S., With Only 6.8 Million Unemployed Workers to fill them.
(Research by the U.S. Bureau of Labor Statistics)
A significant gap exists between the number of job openings and available candidates, putting intense competitive pressure on employers to retain their current talent.
Why This Matters: When demand for talent outstrips supply, employee retention becomes even more essential; turnover doesn’t just increase costs, it can threaten operational continuity.
TeamOut Advice: Strengthen retention by benchmarking your benefits, flexibility, and career development opportunities against industry leaders. Where possible, differentiate your employee experience (e.g., mental health support, experiential team building) to make your organization the employer of choice.
24. HR Leaders Also Report High Levels of Retention, With 80% Saying They Have Good Employee Retention, With Medium-Sized Businesses Reporting the Highest Retention at 85%.
(Research by B2B Reviews data, quoted by Forbes)
Most HR leaders now report strong retention, especially among medium-sized companies, which often pair personal leadership with agile, employee-centric strategies.
Why This Matters: High retention means reduced costs and disruption, plus a better culture and bottom line.
TeamOut Advice: Study what medium-sized organizations do right: maintain open communication lines to leadership, offer agile development opportunities, and foster community through regular team-building activities (in-person and virtual). Scale these practices in larger organizations for improved employee retention results.
25. 68% of HR professionals Say Voluntary Turnover Has Decreased or Remained the Same Over the Last Year.
(Research by Forbes)
Voluntary turnover, where employees leave by choice, has stabilized or dropped for most organizations, pointing to effective employee retention strategies at work.
Why This Matters: A stable or falling turnover rate means fewer employees leaving and less pressure on recruitment and training systems.
TeamOut Advice: Maintain this trajectory by extending programs that employees value: career mobility, flexible work schedules, and skill-building opportunities. Regularly review retention statistics to identify new risks, and swiftly respond to feedback about what makes employees want to stay or go. Sustainable retention is an ongoing practice, not a one-off solution.
26. According to the B2B Reviews Data, 31% of Respondents Are Planning to Stay for 7 Years in Their Current Job, while 26% Plan to Stay One to Three Years.
(Research by B2B Reviews data, quoted by Forbes)
These numbers highlight the dual trends seen in employee retention statistics: a subset of committed long-term employees, contrasted with another group contributing to higher turnover rates.
Why This Matters: Understanding these segmented retention timelines allows organizations to tailor their employee retention strategies, focusing on both nurturing long-term engagement and proactively reducing early-stage turnover among new employees.
TeamOut Advice: Analyze your company’s employee retention statistics to identify which employee segments are most at risk of early exit. 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.
27. 35% of Workers Say Salary is the Most Important Factor in Staying at Their Company, in Addition to PTO/Vacation Days (32%), Insurance Coverage (24%), and Perks (14%).
(Research by B2B Reviews data, quoted by Forbes)
These statistics indicate that competitive compensation and robust benefits are key factors in lowering turnover rates.
Why This Matters: Neglecting salary or benefits is a critical error that can directly increase employee turnover and retention issues, especially as employees compare offers.
TeamOut Advice: Conduct annual market benchmarks to make sure your total compensation package, including salary, PTO, insurance, and perks, remains competitive within your industry and geography. Use total rewards statements so each worker appreciates their full value proposition, decreasing the incentive to leave over pay or benefits dissatisfaction.
28. 43% of HR Leaders Say They're Ensuring Competitive Salary and Benefits, as well as Recognition Programs (38%), to Enhance Retention.
(Research by Forbes)
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.
Why This Matters: Compensation is a baseline expectation, but recognition and appreciation are what often tip the scales between employees staying or becoming a turnover statistic.
TeamOut Advice: If you’re not already regularly benchmarking pay or offering real, public recognition, start immediately. Implement a formal employee recognition program with clear criteria, and ensure salary/benefit reviews are routine and transparent.
29. 34% of Employees Stay at Their Jobs Because They Have the Option to Work Remotely, 24% Because They have a Convenient Commute, and 17% Because They Work in a Hybrid Setting.
(Research by B2B Reviews, quoted by Forbes)
These findings reinforce that work-life balance and flexible arrangements are integral to modern employee retention strategies.
Why This Matters: If your company lacks flexible work options, your turnover rate will rise as employees leave for organizations that offer better work-life integration, especially after the acceleration of remote work expectations post-pandemic.
TeamOut Advice: Survey your workforce annually to gauge interest and satisfaction with current work arrangements. Where logistically possible, provide flexible, remote, or hybrid options for both new and existing employees. Highlight these benefits in recruitment and retention materials to reduce talent loss and improve your organization’s overall employee retention statistics.
30. 45% of HR Leaders Say They’re Seeking to Enhance Retention with Flexible Work Schedules and Remote Work Options.
(Research by B2B Reviews, quoted by Forbes)
Nearly half of HR leaders indicate that offering flexible schedules and remote work is a top priority for boosting employee retention and reducing turnover.
Why This Matters: Flexible work now rivals salary and benefits as an essential retention tool, helping organizations keep employees who might otherwise leave for more accommodating companies.
TeamOut Advice: Move beyond ad hoc policies: standardize flexible work arrangements and make them a core part of your employee retention strategy. Regularly review uptake and impact on turnover rates, and include these programs as a key talking point in performance management and feedback sessions. This approach cuts down on high turnover but also attracts new employees who prioritize flexibility in their job search.
Wrapping Up
Retention drives organizational strength and performance. In 2025, employee retention statistics demonstrate that employees who feel recognized and engaged are far more likely to stay, with Gallup reporting they are 45% less likely to leave after two years. On the other hand, a negative work culture drives nearly half of employees to consider quitting, costing companies valuable talent and driving up turnover rates.
Why does this matter? Because employee turnover disrupts teams, increases managers’ costs, and burdens hiring and training programs with constant new employees. The companies that will succeed in 2025 and beyond are those that invest in fostering positive cultures, recognition, and engagement.
At TeamOut, we’ve helped organizations like yours engage and retain talent through over 1,000 corporate events, achieving a client satisfaction rate of 95%. Our professional team-building services are designed to strengthen workplace culture, improve communication, and reduce costly turnover.
Ready to see how better employee retention strategies can transform your company? Book a free call with us today to explore tailored solutions that keep your teams thriving and reduce turnover.
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