20+ Employee Retention Statistics to Know in 2026

The following employee retention statistics show how the global workforce is becoming mobile, selective, and analytics driven.

With global turnover remaining high, engagement levels are uneven across different regions. Flexibility, well-being, AI, and outsourcing are reshaping how companies protect their staff retention rates.

Let’s see what the numbers can tell us.

8 Eye-Opening Employee Retention Trends

• Global turnover reached around 20% in 2024
• Extreme industry turnover gap – hospitality 75.2% vs government 11.4%
• Only 23% of global workforce feels engaged
• Retention peaks with remote working at 94.2% vs 81.6% in‑office
• 75% of 2025 departures could have been avoided
• Lowest average global tenure was 4.2 years in 2024
• 94% of organizations expect to use AI for retention prediction by 2030
• Outsourcing is linked to 20–21% better retention outcomes

Employee Retention Rates Across the Globe

The following global numbers portray a consistent mobility across industries with workforce churn not stabilizing. Data shows that it is evolving and these are the figures that companies should have on their radar.

1. Global turnover hit 20% in 2024. 

At the same time, average tenure slid from 4.5 years in 2022 to 4.2 years in 2024, signalling that frequent job moves are becoming the global norm rather than the exception.

Why it matters: Organizations now have less time to recover hiring and training costs. Strong onboarding and early engagement are critical according to current training and employee retention statistics.

Source: Merritt Recruitment

2. Hospitality turnover soared to 75.2% in 2025.

On the other hand, SecondTalent’s 2025 breakdown shows government roles sit at only 11.4%. Retail (59.8%), healthcare (32.7%) and technology (24.3%) fall between these extremes, with the average employer losing 18.3% of its workforce every year.

Why it matters: These employee retention rates by industry prove that retention strategy must align with sector realities, not generic benchmarks.

Source: Second Talent

3. Only 23% of employees are engaged globally.

Gallup’s 2024 report also found 62% are “not engaged” and 15% are “actively disengaged.” In the US and Canada, engagement is higher at 33%, yet a majority still fall into disengaged categories that correlate strongly with higher turnover.

Why it matters: Low engagement increases voluntary exits. These numbers show engagement directly influences retention performance.

Source: Gallup

4. Fully remote workers achieve 94.2% retention vs 81.6% in‑office.

SecondTalent reports hybrid arrangements (3 days in office, 2 remote) sit in the middle at around 91.7% retention, often paired with higher satisfaction and productivity scores.

Why it matters: Flexibility is now a measurable retention lever. This is one of the clearest employee retention trends influencing modern workforce design.

Source: Second Talent

5. Investing $4,700 per employee can lift retention by 87%.

Moreover, targeted retention investments are delivering substantial returns. These initiatives also show about 4.2x ROI. High-impact areas include mentoring, flexible work, development stipends, and recognition programs.

Why it matters: Compared to the cost of replacing skilled employees, these investments are relatively modest. Targeted retention budgets increasingly outperform reactive rehiring cycles.

Source: Second Talent

General Employee Engagement and Retention Statistics

Engagement and retention is of vital importance for companies to avoid losses and also ensure the top talent remains among their ranks. The following set of stats show what happens when retention is not prevented as well as the outcome.

6. 75% of employee departures are preventable.

Work Institute’s employee retention trends report from 2025, based on over 120,000 exit interviews, found that 3 out of 4 employee departures in 2025 were preventable with better leadership, development, and work‑life balance.

Why it matters: This reinforces that most churn is driven by fixable issues rather than unavoidable life events like retirement or relocation.

Source: Work Institute

7. 69% of workforce is less likely to job‑hunt when wellbeing is supported.

Gallup found that employees are also far less likely to report burnout and are more engaged and productive. These statistics on employee retention show that wellbeing is a direct lever on retention, not just a “nice‑to‑have”.

Why it matters: Wellbeing is therefore a direct retention driver. Emotional commitment, not just compensation, significantly shapes workforce stability.

Source: Gallup

8. 57% of companies outsource at least one HR function.

Insignia also reports that HR outsourcing users achieve an average ROI of up to 191% for large employers. Significant cost savings is one of the reasons why HR outsourcing is now mainstream, but not the only.

Why it matters: Freeing internal HR teams from transactional work allows organizations to redirect resources toward engagement, development, and strategic retention programs.

Source: Insignia Resources

9. HR outsourcing links to 20–21% better retention outcomes.

Deloitte’s research concluded that specialized providers improve recruitment, onboarding, and development, leading to longer tenure and higher employee retention.

Why it matters: Specialized HR outsourcing partners create smoother employee journeys, reducing early attrition and strengthening long-term workforce stability.

Source: Vorecol

Employee Retention Data Analysis by Country/Region

Regional differences highlight how turnover rates shape retention benchmarks. National context matters, so let’s take a look at the employee turnover rate by country data across different countries and regions.

10. US employee turnover costs employers around $1.2 trillion.

Gallup estimates the annual cost of employee turnover is equivalent to 5.6% of gross domestic product (driven by replacement, training, and lost productivity.)

Why it matters: This trend underscores why even small reductions in voluntary turnover can deliver massive financial returns for US employers.

Source: Gallup

11. Nearly 25% of all Canadian employees planned to change employers.

PwC’s 2023 Hopes and Fears Survey found almost 1 in 4 Canadian employees planned to change employers within the first half of 2024. These training and employee retention statistics show that even where current turnover is moderate, employers must treat retention as fragile.

Why it matters: High intent-to-leave signals vulnerability beneath stable turnover rates. Employers must address development and flexibility before planned exits materialize.

Source: PwC

12. In Australia, 61% of employees planned to change jobs in 2025.

Perkbox’s “Beyond the Paycheck” reported this trend as the highest job mobility intent since systematic tracking began. Main reasons are burnout, competitive pay demands and career stagnation.

Why it matters: Despite turnover averaging 16%, elevated intent suggests latent instability. Employers face mounting pressure to address well-being, pay competitiveness, and career stagnation.

Source: Perkbox

13. Latam average turnover in 2024 was about 23–44%.

IEA analysis delivered these statistics across Argentina, Brazil, Ecuador, Mexico, Paraguay and Peru. Additionally, 30–50% of those who quit exit the labor force entirely.

Why it matters: These employee retention statistics from 2024 create dual challenges: high churn and talent pipeline shrinkage. Re-entry strategies and workforce reintegration become critical in these markets.

Source: IEA

14. EU employees rate flexible work and culture as top retention priorities.

Eurostat’s 2024 survey found 30% of EU employees rated flexible work as their top retention priority. McKinsey research shows organizations with well‑defined culture are 25% more likely to retain employees for 5+ years.

Why it matters: Flexibility and culture now outweigh compensation in many European markets, shifting retention strategy toward work design and organizational identity.

Source: Eurobrussels

Employee Retention Statistics Over the Years – Post Covid Period

This section tracks how churn and preferences evolved each year, giving context for 2026 decisions. Tracking year-over-year data is crucial to identify evolving trends and ensure employee retention remains high.

15. Global average employee tenure fell to 4.5 years in 2022.

By 2022, workers were already changing jobs faster than before the pandemic, setting the stage for further drops in 2023–2024. The staff retention rate in 2022 fell to 4.5 years of tenure.

Why it matters: Organizations have less time to recoup hiring and training investments and must deliver growth and engagement value earlier in the employee lifecycle.

Source: Merritt Recruitment

16. US voluntary turnover peaked at 17.3% in 2023.

2023 marked a late‑phase high point for US churn. Mercer’s turnover survey shows average voluntary turnover significantly higher than pre‑pandemic levels.

Why it matters: This peak sustained high hiring and onboarding costs, reinforcing the urgency of structured retention programs ahead of gradual cooling.

Source: Mercer

17. Global turnover reached 20% in 2024.

By 2024, staff movement remained elevated worldwide. Merritt also highlights average tenure dropping further to 4.2 years, down from 4.5 years in 2022.

Why it matters: This combination of high turnover and shrinking tenure reinforces the need for strong onboarding, rapid upskilling and early‑career development to protect retention.

Source: Merritt Recruitment

18. Average company loses make up 18.3% of workforce annually in 2025.

SecondTalent’s employee retention statistics from 2025 also indicate that voluntary departures account for 76% of exits. Most of these voluntary quits occur in the first year of employment.

Why it matters: this trend underscores the importance of onboarding, the first-year experience, and early career path visibility.

Source: Second Talent

Future Employee Retention Stats & Outlook

Lastly, let’s see the latest trends and what the future holds for companies who are looking to avoid losses. With outsourcing, AI, new HR models, and skills-based mobility, companies can directly influence their retention rates.

19. By 2030, 94% of organizations will use AI for retention prediction.

According to these employee retention facts, 9 in 10 organizations are looking to use AI for their employee retention efforts.

Moreover, SecondTalent’s forecasts that 89% will implement personalized retention strategies.

Why it matters: This shift means that by the end of the decade, most employers will be running proactive, analytics‑driven retention programs rather than reacting to resignations.

Source: Second Talent

20. Regrettable turnover will be cut by nearly 40% by 2030.

SecondTalent’s AI‑in‑recruitment and HR data shows 75% of companies plan to use retention‑prediction algorithms. Organizations currently using comprehensive predictive analytics report about 38% lower regrettable turnover and 41% better hiring outcomes.

Why it matters: These tools are expected to be standard in the near future, allowing HR teams to identify at‑risk employees early and intervene with targeted development or role changes.

Source: Second Talent

21. 80% of executives plan to maintain or increase outsourcing investment.

Outsourcing’s role in workforce strategy is set to grow. Deloitte’s Global Outsourcing Survey 2024 found that 4 out of 5 executives intend to maintain or increase their outsourcing investments, including HR and people-related services.

Why it matters: As outsourcing becomes more strategic, external partners will play a larger role in delivering analytics, engagement tools, and flexible capacity that underpin modern retention strategies.

Source: Deloitte

22. 82% of businesses will offer skills‑based career paths.

According to these employee retention statistics, 8 in 10 businesses will offer skill training in the employee’s career path development.

Zalaris’ “Designing the Future of Work” report also projects that by 2030, 78% will provide continuous learning opportunities, and 73% will adopt real‑time engagement monitoring as standard retention practices.

Why it matters: These shifts will replace traditional tenure‑based promotions with fluid, skills‑driven mobility, expected to boost retention by aligning employee growth with organizational needs in a talent‑scarce world.

Source: Zalaris

23. 70% of the workforce will be in non‑traditional roles.

PwC’s “Workforce of the Future” report forecasts that by 2030, 70% of the workforce will be in non‑traditional roles (contract, gig, freelance, or hybrid), with 85% of jobs that will exist in 2030 not yet created today.

Why it matters: This radical shift demands new retention models focused on alumni networks, project‑based engagement, and “boomerang” rehiring, as traditional full‑time loyalty gives way to lifelong talent relationships.

Source: PwC

Conclusion

Employee retention statistics confirm one reality – turnover is not cooling, it is transforming. Mobility remains high, engagement gaps persist, and flexibility now rivals compensation. Those companies that invest early will outperform reactive hiring cycles.

In the end, organizations that venture into retention strategies and employee well-being will build a more resilient and future-ready workspace.

Frequently Asked Questions (FAQ)