Employee Retention and Turnover Statistics You Need to Know in 2025

Imagine investing time and resources into training an employee, only to watch them walk out the door. Now, multiply that across an entire workforce. 

When an employee leaves, the cost goes beyond just hiring a replacement. Recruiting, training, and onboarding expenses add up quickly. Projects stall, teams lose momentum and institutional knowledge disappears. These are the real costs of turnover.

The first step in avoiding these costs? Understanding the latest turnover trends shaping 2025. To stay ahead, companies must proactively address retention by understanding how their industry’s turnover rates compare — and where they can improve.

In this blog, we break down the latest employee retention and turnover statistics to uncover trends that are impacting the workforce in 2025.

Industry Turnover Rates in 2025

A good first step in understanding your organization’s turnover challenges is comparing your rates to industry benchmarks. 

Turnover varies across industries due to factors like job demand, workforce expectations and economic conditions. By analyzing the latest industry data, you can gauge where your organization stands, identify potential risks and develop strategies to improve employee retention.

Based on data from the U.S. Bureau of Labor Statistics, here are the latest turnover rates for various industries as of December 2024:

• Mining and Logging: 4.0
• Construction: 3.4
• Manufacturing: 2.5
  • Durable Goods: 2.2
  • Nondurable Goods: 3.0
• Trade, Transportation, and Utilities: 3.9
  • Wholesale Trade: 2.2
  • Retail Trade: 3.9
  • Transportation, Warehousing, and Utilities: 5.1
• Information: 2.5
• Financial Activities: 2.3
  • Finance and Insurance: 2.2
  • Real Estate and Rental and Leasing: 2.8
• Professional and Business Services: 4.2
• Private Education and Health Services: 3.0
  • Private Educational Services: 2.3
  • Health Care and Social Assistance: 3.1
• Leisure and Hospitality: 5.3
  • Arts, Entertainment, and Recreation: 5.5
  • Accommodation and Food Services : 5.2
• Other Services: 3.8

Not sure where your turnover stands? Try our free retention calculator to see how your organization compares.

Key Employee Retention and Turnover Statistics for 2025

1. Employee Satisfaction Declined in Late 2024 Despite Earlier Gains

While employee satisfaction showed improvements earlier in 2024, the fourth quarter brought an unexpected decline. According to BambooHR’s Q4 2024 Employee Satisfaction Survey, the Employee Net Promoter Score (eNPS) dropped from 36 in Q3 to 35 in Q4, signaling a dip in workplace morale across multiple industries.

Q4 2024 Average eNPS by Industry (from Highest to Lowest):

• Construction: 50 eNPS
• Education: 36 eNPS
• Travel/Hospitality: 36 eNPS
• Finance: 34 eNPS
• Technology: 33 eNPS
• Healthcare: 33 eNPS
• Restaurant, Food & Beverages: 31 eNPS
• Nonprofit: 31 eNPS 

Across all industries, only technology maintained a stable eNPS, while every other sector saw a decline between Q3 and Q4 2024. Construction continues to hold the highest eNPS despite a 4% drop from the previous quarter. Finance, Nonprofit, and Restaurant/Food Service sectors hit a five-year low in eNPS, reflecting growing challenges in employee sentiment.

2. Lack of Career Growth: A Leading Cause of Turnover

Studies reveal that employees expect career growth, and without it, they’re likely to leave. 

A survey by Amazon and Workplace Intelligence reveals that 74% of Millennial and Gen Z employees would leave their jobs if they weren’t given enough opportunities for skills development. However, this isn’t a new trend  — back in 2021, a separate study also found that 70% of employees would consider leaving their job for an organization that invests in career growth and learning.

To stay competitive, companies must invest in mentorship, upskilling and internal mobility — otherwise, they risk losing top talent to organizations that do.

3. Employee Retention and Engagement Remain a Top Priority for CEOs in 2025

Employee retention and engagement continue to be a top priority for CEOs in 2025, according to the latest surveys.

In fact, 57% of CEOs rank retaining and engaging employees as a top business priority — down slightly from 60% in 2024, when it was the number one concern. While gaining market share has now taken the top spot, retention still holds strong as the second most important priority for CEOs.

4.  Turnover Rates Continue to Decline, But Some Industries Still Struggle

The average voluntary turnover rate in the U.S. has continued its downward trend, now sitting at 13.5%, according to Mercer’s 2025 Workforce Turnover Survey. This continues a multi-year drop from 17.3% in 2023 and 24.7% in 2022.

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. 

The report reveals Retail and Wholesale industries have the highest turnover at 24.9%, indicating ongoing instability and high employee movement. In contrast, the Chemicals industry has one of the lowest turnover rates at 9.1%.

Turnover Rates by Job Level:

• Executives: 5.4%
• Management: 7.6%
• Sales Professionals: 8.3%
• Non-sales professionals: 10.2%
• White-Collar Professionals: 12.8%
• Blue-Collar Para-Professionals: 15.6%

Beyond overall turnover rates, employers continue to struggle with hiring and retention in hard-to-fill roles. 47.2% of organizations report difficulty attracting or keeping employees in critical sectors, including:

• Transportation & Logistics
• Healthcare
• Manufacturing
• Mining & Metals

5. Half of U.S. Employees are Considering a Job Change

Employee mobility remains a major concern for organizations heading into 2025, with job-seeking behavior on the rise. 

According to Gallup’s Employee Retention and Attraction Indicator, 51% of U.S. employees — or roughly 1 in 2 workers — are either actively searching for or watching for new job opportunities as of November 2024. This is a notable increase from 44% in March 2020, indicating a growing trend in job-seeking behavior.

Why Are Employees Leaving?

• Pay and benefits
• Development and career opportunities
• Direct supervisor/manager
• Relocation

What’s Attracting U.S. Employees to New Roles?

• Greater work-life balance
• Significant increases in income or benefits
• Opportunities that align with their strengths and passions
• Greater stability and job security

6. Employee Retention Index Sees Largest Drop in Two Years

Employers should prepare for rising employee turnover in 2025, according to the Eagle Hill Consulting Employee Retention Index. 

The January 2025 release shows the index fell 6.2 points from the previous quarter to 98.5, marking its largest drop in two years and its first notable decline in 12 months. While retention rates have been improving, this downward trend suggests that turnover could increase through mid-2025.

Key Factors Driving the Decline:

• Organizational confidence fell by 4.5 points, indicating employees are losing trust in leadership and their organization.
• Culture ratings declined by 3.1 points, marking the lowest levels of cultural satisfaction among employees.
• Compensation concerns surged, with a 7.9-point drop, the largest decline in two years.
• Job market opportunity increased by 3.1 points, showing that employees feel more confident about finding new jobs elsewhere.

Retention Risks by Demographic:

• Women's retention scores dropped by 8.5 points, compared to a 2.4-point decline for men, indicating a greater risk of turnover among women.
• Millennials and men hold the highest retention scores, making them the most likely to stay despite a slight decline between Q3 and Q4 2024.
• Generation Z was the only generation to show improvement, with a 6.5-point increase in retention scores. However, Millennials still have stronger retention rates, even with a quarter-over-quarter decline.
• Baby Boomers now face the weakest retention outlook, experiencing the steepest decline in scores between Q3 and Q4 2024, suggesting a heightened risk of turnover among older employees.

Retention Remains a Critical Business Imperative

As we move through 2025, employee retention continues to be a key challenge and opportunity for organizations. While overall turnover rates are declining, certain industries and demographics face heightened retention risks. At the same time, factors like career growth, employee engagement, and recognition remain consistent drivers of turnover across all generations.

For organizations looking to build a resilient and committed workforce, the focus should be on:

• Providing career development and upskilling opportunities to retain top talent.
• Addressing industry-specific retention challenges with targeted strategies.
• Investing in employee recognition programs to boost engagement and reduce turnover.
• Prioritizing competitive compensation and benefits to stay attractive in the job market.

Organizations that take a proactive approach to employee engagement and recognition will be best positioned to attract, retain, and develop high-performing teams in 2025 and beyond.

Boost Retention in 2025 with the Power of Recognition

People want to feel appreciated — it’s that simple. When employees feel valued, they’re more engaged, more productive and more likely to stay. But when recognition is missing, they start looking elsewhere.

Take ATCC, a leader in the science community, for example. Facing high turnover and rising recruiting costs, they partnered with Inspirus to implement a structured recognition program. The result? A 10% increase in retention within a year of implementation — saving time, money and the headache of constant hiring.

If you're struggling with turnover, chat with an Inspirus specialist to see how a strategic recognition program can help you build a workplace where employees feel valued — and want to stay.