We wrap up the key employee retention statistics so that you can improve the relationship between employee and workplace in 2026.
As we step into 2026, the numbers paint a vivid picture of the challenges and opportunities in keeping top talent engaged and loyal.
Did you know that 85% of employees cite a lack of career growth as the top reason for moving on?
These figures highlight a growing demand for companies to rethink their retention strategies, especially in a labour market where 78% of job seekers prioritise work-life balance over salary.
And the stakes are higher than ever.
Replacing an employee now costs businesses roughly 1.5 to 2 times their annual salary.
In this blog, we’ll look at
- What employee retention is
- The current state of employee retention [statistics]
- Statistics on why people are leaving their jobs
Let’s get started.
What is employee retention?
Employee retention is an organisational goal to keep the best employees and reduce staff turnover.
Since retention can greatly cost a company and means they lose top talent, it’s a priority for any organisation.
You can positively impact employee retention by creating a good working environment through competitive pay, work-life balance, varying benefits and more.
All of this can positively impact employee sentiment but it also impacts motivation.
And when 15% of people who’ve resigned from a job state feeling “unmotivated” as a reason, you can see why it’s even more essential.
What is a good employee retention rate, and why is it so important?
Industry to industry, employee retention rates can vary. Generally speaking, a good employee retention rate should be around 90%.
That means a good employee turnover rate would be around 10%.
When jobs have lengthy or costly training processes, then low employee retention can be a real issue.
So, understanding the reasons why your employees are leaving is key.
Hospitality tends to see a higher turnover rate than the national average.
Key employee retention statistics you might not know
The UK employment rate was estimated at 75.9% in January to March 2023. Meanwhile, over 320,000 people handed in their notice for a role in Q1 of 2023.
And when we’re dealing with numbers like this, there’s something big we need to consider.
Cost.
What does employee turnover cost an organisation?
Well, according to Centric HR:
- For jobs paying less than £30,000 per year, you should expect it to cost your business 16% of the annual salary to replace that member of staff. So if someone on £27,000 per year resigns, it will cost around £4,320 to replace them
- For jobs paying between £30,000 and £50,000 per year, you should expect it to cost around 20% of the salary to replace someone. So if a member of staff on £40,000 resigns, expect to spend £8,000 on recruiting their replacement and getting them up to speed
- For highly paid executive positions, you can expect it to cost you up to a whopping 213% of the annual salary to replace someone. So if a CEO on £100,000 per year resigns, you may well spend up to £213,000 finding, hiring, and getting their replacement in and up to speed
So, at both ends of the spectrum, keeping staff for longer has huge financial implications too.
Of course, we can’t expect turnover to disappear completely.
There will always be employees moving on to new roles. And in some sectors, you’ll need to expect higher rates of turnover
We’re talking about sectors like retail, hospitality, etc.
But just because you’re facing a bigger challenge when it comes to turnover, doesn’t mean you can’t impact it.
First, you need to understand why your employees are leaving.
Why are people leaving their jobs?
A myriad of factors contribute to employees departing from their positions.
A 2022 study by Edenred uncovered the most common reasons for quitting a job. They were:
- Feeling unmotivated (15%)
- Being overworked (14%)
- Management don’t care about wellbeing (14%)
- Poor atmosphere (14%)
- Less pay than I wanted (13%)
Of course, from role to role and sector to sector, you’re going to see different reasons for people upping sticks and moving on.
A study by TeamStage showed a significant 40% of individuals choose to leave their jobs due to dissatisfaction with the performance of their superiors, highlighting the critical impact that leadership has on staff retention.
The importance of empathy in the workplace is underscored by a staggering 96% of employees who believe that it is a crucial element for job retention.
So now we know why employees are leaving, what can we do about it?
How to use employee retention statistics for good
It’s all well and good reading this blog and learning why employees decide to move on.
But what action are you going to take to prevent it?
Well, according to a Glassdoor survey, onboarding improves a company’s retention rate by 82% if conducted properly.
And it’s no surprise.
79% of employees say onboarding programs help them integrate and understand company culture.
This was backed by employees:
- 65% of employees are confident they can find a better position elsewhere that offers more compensation.
- 23% of new hires turnover before their first anniversary.
- 69% of employees are more likely to stay with a company for three years if they experienced great onboarding.
- 23% of employees who quit within 6 months say that clear guidelines on their responsibilities would have helped them stay at the job.
If you can’t justify salary reviews or other costly alternatives, then investing in a better onboarding experience could be one to consider.