Employee Turnover Statistics You Need to Know in 2025

employée découragée
Stories
Morgane Lança
February 3 2025

Any company wishing to ensure its productivity and sustainability keeps a close eye on its annual turnover rate, paying particular attention to the number of voluntary departures among its employees.

Although it is definitely a good practice, it can be difficult to draw conclusions and concrete solutions from simply tracking employee turnover rates. To make effective strategic decisions, you should also compare your numbers with competitors and be aware of the current context and statistics related to turnover rates.

Discover all the key stats and highlights you need to know about employee turnover in 2025, along with tips to prevent voluntary departures in your company!

But first…

How to Calculate Employee Turnover Rates?

To calculate your turnover rate, simply divide the number of employee departures over a given period by the total number of employees present in the company during the same period, then multiply this number by 100 to get a percentage.

You can also differentiate retirements and layoffs from voluntary departures to get a more accurate picture of workforce turnover within your organization.

In order to do do this, record the reasons behind each departure and include only relevant departure categories in your calculation. To simplify the process, you can also use automated HR KPIs on a HR software solution.

Overview of Employee Turnover Rates

Here are some key statistics to remember about current employee turnover rates:

  • The average turnover rate in Canada is 11.9%.
  • In the United States, it is 13.5%.
  • In the United Kingdom, turnover climbs to 16.8%, while in France, it hovers around 15%.
  • January sees the highest number of voluntary departures, following professional and personal introspection during the holiday season.
  • Interestingly, at least 40% of employees are considering leaving their jobs in the coming months. These workers are either looking for better career opportunities or, in the worst case, are completely disengaged and experiencing quiet quitting.

It should be noted that replacing an employee costs approximately 20% of their salary, and up to 210% for senior positions. Therefore, retaining managers and executives is particularly crucial.

Additionally, 87% of HR managers say that employee retention is a priority in their organization. Voluntary employee turnover will undoubtedly continue to drive HR strategies and discussions!

Turnover Rates by Industry

Let’s now take a look at turnover rates by industry. These rates vary significantly from one sector to another:

  • Wholesale trade leads with a turnover rate of 25.9%.
  • At the bottom of the list is the energy sector with an 8% turnover rate.
  • Retail (19.3%), food services (17.2%), and hospitals (20.7%) are also heavily impacted by employee turnover. Meanwhile, the medical sector is experiencing a labor shortage.

Industries with the highest voluntary departures often face significant recruitment challenges and even labor shortages. In affected industries, workforce retention is crucial, but managers and employers often have limited resources to ensure employee loyalty and satisfaction.

Main Reasons for Voluntary Employee Departures

Unsurprisingly, one of the main reasons employees leave their company is compensation (the most important factor for 60% of workers). Recognition is also a top expectation, and its absence drives 44% of employees to change jobs. The pursuit of work-life balance also plays an important role (22%).

To retain and engage their talent, companies across all industries must focus on their total compensation package, working conditions, and fair recognition of their workforce.

What Average Turnover Rate Should Your Company Aim For?

It is often estimated that an acceptable turnover rate is around 10%. If your rate is significantly higher than this benchmark, it is likely that your organization is facing deep engagement and motivation issues.

The key is to set realistic turnover rate goals and regularly monitor this percentage to identify turnover issues before they escalate.

It is important to note that employee turnover is not necessarily negative for your business. Despite all efforts to offer an attractive company culture, employee experience, and working conditions, some workers may simply not align with your values, mission, or their assigned role. In such cases, their resignation can be beneficial, allowing your company to hire new and motivated talent who will be more productive.

5 Tips to Prevent Voluntary Departures in 2025

Even though voluntary departures are inevitable, no company wants to lose its best talent. Fortunately, there are best practices to adopt in 2025 to avoid rising turnover rates and talent loss:

1. Update Your EVP and Total Compensation Package

Employee expectations are evolving, and your Employee Value Proposition (EVP) must keep up! This EVP includes your salary offering, employee benefits, work environment quality, and all measures that make daily life easier for your coworkers and enhance your company culture.

Don’t hesitate to survey your employees to understand their top priorities and update your EVP and compensation accordingly. What’s more, these efforts will also support your recruitment strategies by making talent attraction easier!

2. Prioritize Employee Experience

A good employee experience is essential to retaining and keeping your talent long-term. This experience must be positive and well-structured from the beginning of the onboarding process. In fact, the first 45 days of a new hire account for up to 20% of staff turnover!

After making a good first impression, it is crucial to ensure that the daily experience remains positive. Foster constructive feedback, a welcoming and pleasant work environment, work-life balance measures, and healthy professional relationships.

3. Focus on Skills Development

Many employees leave their roles because they feel professionally stagnant. It is important to identify each employee’s growth potential and offer development opportunities tailored to their ambitions and skills.

Effective skills and training management will not only maximize your talent’s potential but also increase their satisfaction and long-term retention.

4. Encourage a Sense of Belonging

Creating a sense of belonging is essential to stand out from the competition. Key factors influencing this sense of belonging include:

  • Happiness and satisfaction with their role and work environment;
  • Alignment with the company culture and values;
  • Commitment to the organizational mission and individual goals;
  • Good professional relationships and team synergy;
  • A shared sense of purpose and vision;
  • Team activities and frequent, constructive interactions with colleagues.

5. Adopt the Right Work Tools

If your employees’ daily lives are plagued by manual processes, repetitive tasks with no added value, and outdated tools, they are more likely to leave your organization.

Regularly evaluate your work tools and invest in modern, user-friendly technology solutions to ease their workload and make them more happy and productive.

Need help managing voluntary employee departures?

Simplify your exit interview process with our exit interview template!

DOWNLOAD YOUR EXIT INTERVIEW TEMPLATE

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