If there’s one thing we love, it’s data. From data-driven decisions to facts in evidence, real numbers help us uncover real insights.
Strong stats help us highlight areas of concern and opportunity so we can build understanding, galvanize action, and make a difference.
One key area where this will be important in 2025? Employee retention.
In 2024, Gallup research reports and other respected data-centric projects reviewed employee retention and engagement over several years, measuring staff loyalty, commitment to corporate goals, and churn – the likelihood of leaving the job in the near future. The favored methodology was professional surveying of representative samples, asking insightful questions to help stakeholders better strategize their HR. This article covers these investigations from corner to corner to deliver the perspectives you need and deserve. We will provide analysis, evaluations, and recommendations based on an extensive range of probes.
Employee retention data insights for 2025
We’ve gathered insights in several different areas. The first five are from a Gallup report covering 2024 and multiple previous years.
1: Looking for a new job
The Gallup Question: “To what extent are you currently looking for a different job than the one you have now?”
In 2024, 51% answered “actively” – matching the same response for 2014 (the two highest data points over a decade) – 21% more than in 2018 (the strongest loyalty indicator within the research window). When one in every two employees seriously considers job skipping, it’s a flashing alert signal that HR value propositions are faltering.
Think of it this way: Imagine that you had thirty employees (earning an average $75,000 salary) in your business at Christmas in 2024.
- When the festive season rolls around in 2025, potentially half the faces you see today will have moved on.
- According to Employee Benefit News, replacing workers costs (on average) 33% of their annual salaries. So, for our example, the impact would be 15 employees x $25,000 = $625,000 rehiring cost. That’s a massive hit on the bottom line.
Why does this matter? Knowing the lowdown about who on the payroll intends to leave or stay is massively helpful to companies striving to retain and attract talent. Research that reveals short-term career intentions is a great start, but it begs more probing to understand why employees think the way they do. We need to know more, as revealed below.
2: Is now a good time?
The Gallup Question: “Would you say now is a good time or a bad time to find a quality job?”
- In 2024, 48% of respondents said “a good time,” which aligns closely with why around half the respondents want to leave their employers.
- That’s a big step down from the post-epidemic “Great Resignation” (in 2022), when 70% thought the same.
- On the other hand, the acute optimism of finding a new job in 2022 was seven times the 2009 level (i.e., a deep recession era) when only 10% had feelers out for other work opportunities.
3: Likelihood of recommending to a friend
The Gallup Question: “How likely are you to recommend your employer to a friend?”
It’s a dismal picture when around only 25% answer “very likely” – a metric that’s been flat-lining since 2008. Put another way:
- 75% of employees weren’t willing to promote their workplace to people they care about.
- This one-question litmus test of employee satisfaction confirms that only one in four businesses have engaged their staff.
4: Reasons for leaving
The Gallup Question: “Which of the following issues best describes your primary reason for leaving your previous job?”
Covering 2020 to 2023, results indicated:
- Monetary dissatisfaction is the primary termination catalyst at 16%, down from 20% in 2022.
- Lack of career advancement comes in second at 12%, just a slight 1% dip from 2022.
- “Direct supervisor/manager or senior leadership”, also at 12%, could mean ‘boss appeal’ is:
- Relatively better at another company
- Severely absent in the current position (likely the latter).
- Relocation, in fourth place, is a challenge to interpret, because it may be completely unrelated to the job itself.
- Personal reasons, at a relatively steady 9% and showing up in fifth place on the list, could mean anything from lifestyle stress to medical problems.
The insights become more meaningful when Gallup asks the same question with a choice of categories (versus individual peeves). See as follows:
- Engagement and Culture = 41%
- This is 2.5 times more vibrant than unsatisfactory remuneration as a churn cause.
- This includes the items mentioned above as well as 13 others, from ‘Unrealistic job expectations and responsibilities’ to ‘Insufficient training,’ ‘Not treated with respect,’ and ‘The job was different than I expected.’
- Well-being and Worklife Balance = 28%
- This outweighs payment issues by 75%.
- It covered seven personal reasons, such as ‘Medical issues,’ ‘Relocation,’ and ‘Work Schedule.’
5: Reasons to join
The Gallup Question: “Please indicate how important each of the following is to you when considering whether or not to take a job with a different organization.”
Respondents could choose from seven items like “Greater work-life balance and better personal well-being” and “Significantly increases my income or improves my benefits package.”
The one thing that stood out is that the talent-acquiring organization offers the same highly rated job enrichments that job-seekers miss in their current places of employment:
- Fair compensation
- A transparent and engaging corporate culture
- Sincere recognition of workforce well-being
In short, stakeholders who retain and acquire staff successfully provide the same compelling value proposition absent from those who prolifically lose employees to competitors and fail to onboard quality new candidates.
6: An uphill battle for retention
Haiilo, quoting Gallup’s State of the Global Workplace report, makes the following point:
Stakeholders are fighting an uphill engagement battle. Why?
Only three in ten US employees are engaged enough to guarantee retention, although it’s twice the global average and more than four times the UK level on the same metric.
Unfortunately, this means that 67% of American employees exert minimum effort to maintain their jobs (a discouraging KPI) or eye other work opportunities.
7: The cost of disengagement
Korn Ferry and Conference Board studies on workplace engagement align with Haiilo’s perspectives above. They discovered that:
- The ‘same old, same old’ in their job descriptions (i.e., boredom) drives 33% of employees to terminate voluntarily.
- US businesses suffer costs of around $450 – $550 billion each year due to employee disengagement.
8: The benefits of getting it right
Another five statistics provide extraordinary perspectives:
- 71% of C-suite stakeholders attribute their organizational success to employee engagement.
- According to another insightful Gallup report, companies nurturing engaged teams can expect 21% higher profitability.
- Trade Press Services’ research indicates that 85% of employees demonstrating engagement credit it to transparency and internal communications that consistently strike the right chord.
- A Hays survey revealed that disconnection with the employer’s culture created 47% of active job seekers’ dissatisfaction with their current positions.
- A report from Achievers supports this idea with the finding that employees’ alignment with an organization’s values is the most crucial sign of team engagement.
- Gallup sees it slightly differently, stating that 70% of the cases where engagement differs significantly is the result of management style creating (or failing to create) employee responsiveness. Of course, this circles back to culture, so it’s not a contradictory observation.
2025 employee retention takeaways for management teams
So, what are your our 2025 takeaway from the statistics? It’s important to note that your data matters most, and hearing from your own employees may highlight different areas of concern and opportunity. That being said, a careful review of public data suggests the following key suggestions.
- Focus on developing a sustainable culture that promotes transparency, continuous employee feedback (360-degree communication from peers, bosses, and subordinates), and team objectives (versus individualism).
- Communicate with staff how they feel most comfortable, not what suits you best. In the digital era, this may range from Zoom conferencing to podcasts, YouTube videos, and in-office get-togethers (even for hybrid and remote workers).
- Embrace the hybrid working model with both hands. It’s here to stay for the 2020s and beyond.
- Establish a training program from A to Z, meeting every vital need as the virtual environment changes the organizational demands.
- Meet employees’ advancement expectations while maintaining a robust approach to meeting stakeholders’ ROI.
- Appreciate that environmental volatility creates family and workplace stress. As a result, work quality can downgrade in a flash. Progressive companies place employee mental health and general well-being on a pedestal, treating it as a priority.
- Work-lifestyle balance should be front and center of your HR planning, especially when remote working employees enter the arena.
- Pay fair salaries and share profits in the form of bonuses. No amount of effort in the areas discussed above will pay dividends if your remuneration scales are non-competitive.
- Appreciate that failure to engage employees generally results in bottom-spectrum performance, unacceptable churn, and ROI under pressure. The only equivalent threat to the bottom line is customer churn.
- Conversely, retention will bolster profitability, grow revenues, cut overheads, and consolidate a cohesive workforce to achieve superior results.
Conclusion
Sogolytics is an employee experience authority that can make your metrics come alive with groundbreaking AI-enhanced technologies to achieve impressive employee retention metrics. For additional perspectives, please check out our companion article on employee experience lessons from 2024 that can help burnout-proof your business this year.
Our team functions around clients at the cutting edge of sustaining customer loyalty with constructive advice in its corner. Our experience in cultural infrastructures, employee engagement programs, well-being initiatives, and more will cut down your trial and error with fast, conclusive results. Contact us today for a direct, no-obligation conversation about your HR objectives.
Employee retention FAQs
Q: What are the top reasons employees leave their jobs in 2025?
A: Monetary dissatisfaction, lack of career advancement, and poor management are primary reasons for employee churn.
Q: How can companies improve employee retention in 2025?
A: Companies can enhance retention by focusing on engagement, transparency, fair pay, and work-life balance.
Q: What are the costs of replacing employees?
A: Replacing an employee can cost 33% of their annual salary on average.
Q: What is the role of employee engagement in retention?
A: Employee engagement leads to higher profitability, improved morale, and reduced turnover.
Q: Why is hybrid work important in employee retention?
A: The hybrid work model supports work-life balance and flexibility, making it vital for retention strategies.
