The state of employee retention 2024-2025
- Industry insights on the state of employee retention
- Top causes and impacts of high turnover
- Strategies from retention leaders to retain talent
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Why it matters
Employee retention is a top priority for HR teams. The latest research shows that labor shortages are on the rise, with reports finding that among working-age individuals in the US, there are only 7.2 million unemployed workers versus 8.2 million job openings.
Meanwhile, employee turnover is outpacing hiring schemes. The US now has a national quit rate of 1.9% compared to a hiring rate of 3.3%. On top of this, skills shortages are only exacerbated by talent turnover. 70% of executives say their businesses are suffering financially because their workforce lacks the right competencies.
23%
Less than 23% of organizations describe their retention capabilities as top-notch or advanced
50%
More than half of respondents reported increased workload, lower morale, and loss of productivity as a result of turnover
2x
Organizations reporting success with employee retention were 2x more likely to have strong L&D practices
Key takeaways on the state of employee retention
This report, carried out by HR.com and sponsored by eloomi, shows that retention practices are not yet reflecting the urgency of retention priorities. Survey respondents ranked employee retention as a top-three priority within their organization, yet less than a quarter believe their retention initiatives are truly successful.
This major study unpacks the following findings, with key stats and industry insights to help inform HR and L&D leaders on the state of employee retention:
- Employee retention tends to be a high priority, but organizational capabilities in this area are lagging behind
- There are multiple causes of high turnover, both internal and external to organizations
- Negative effects of high turnover include increased workloads, lower morale, and loss of productivity
- Key ways to combat employee turnover include onboarding, training opportunities, and better work-life balance
- Organizations that pull ahead on employee retention share similar approaches, including investing in learning and development
The state of employee retention survey ran between July and August 2024, gathering responses from 298 HR professionals in virtually every industry vertical. Respondents are located all over the world, with a majority in the USA. The participants represent a broad cross-section of employers by organizational size, ranging from small businesses with fewer than 100 employees to enterprises with 20,000+ employees. Over a fifth of responses were from large organizations having 1,000+ employees.
