Employee retention is crucial for maintaining a stable and productive workforce. Employee turnover can be costly, with recruitment, training, and lost productivity driving up costs. A high retention rate helps foster a cohesive team where members have adapted to each other’s work styles, leading to increased efficiency.
Data plays a vital role in understanding why employees leave and identifying areas for improvement. By leveraging data, you can anticipate turnover risks and proactively address them.
In this infographic, you’ll discover key employee retention statistics, why employees quit, and actionable strategies to keep your workforce engaged and committed.
What is Employee Retention?
Employee retention is an organization’s ability to retain its workforce over time, thereby reducing employee turnover rates. It involves implementing strategies to minimize voluntary exits and ensure that skilled and experienced employees remain engaged and committed.
Poor employee retention can be costly; the Society of Human Resource Management estimates that filling a role can cost three to four times the employee’s salary, not to mention the disruption to workplace dynamics when a pivotal team member leaves.
High retention rates support smooth business operations by maintaining a stable, knowledgeable workforce. When experienced employees stay, they continue to contribute their expertise, which is critical for organizational growth and success.
Why Hardworking Employees Quit
While some amount of churn is inevitable, high turnover among hardworking employees is a red flag for any organization. When top performers leave, it affects productivity, team morale, and the company’s bottom line. Here are the primary reasons why employees leave:
Inadequate compensation
Pay is often the first reason employees without equity choose to leave. With soaring living costs, many are feeling the financial strain more than ever.
If employees notice that their wages aren’t keeping up with inflation or competitive offers from other companies, they are likely to seek better-paying opportunities. Businesses need to recognize this reality and ensure their compensation packages are competitive to keep top talent.
Feeling undervalued
Besides monetary compensation, employees expect contributions to be rewarded socially and officially. Recognition is a powerful motivator; employees are much more likely to stay committed to their work when they feel appreciated. On the other hand, a lack of acknowledgement can lead to frustration and disengagement.
Hardworking employees who consistently deliver results but receive little to no recognition for their efforts can quickly feel invisible.
Work-life imbalance
High performers often put in extra hours, but burnout is a real risk if their work begins to overshadow their personal lives. A lack of work-life balance can leave employees exhausted, stressed, and unable to perform at their best. A bit counterintuitively, working fewer hours can be better for employee performance.
When work demands consistently outweigh personal time, employees may seek new roles where they can find a healthier balance.
Stalled career growth
Talented employees thrive on learning and advancement opportunities. When growth is stagnant, they may feel stuck. They may start looking for opportunities elsewhere if they don’t see a clear path for promotion or skill development.
This is the paradox of good employees. Even if they’re perfect for a role, ambitious, hardworking individuals crave professional challenges and will rarely feel satisfied with their current position.
Unempathetic leadership
The global pandemic gave everyone a naked view of how their employers react to an incredibly challenging situation. Leaders who didn’t consider their employees’ emotional and professional needs may have appeared to prioritize the company’s bottom line over their people.
This new perspective has remained relevant as the world exits the pandemic and workers leave their work-from-home setups. Employees are holding their employers to a higher standard. Employees want to feel that their leaders understand their challenges and care about their well-being. If they can’t meet those standards, the employee may search for an employer who can.
Disengagement
When employees feel disconnected from their work, team, or the company’s mission, they lose motivation. This disengagement can stem from a lack of challenging projects, a sense that their work doesn’t contribute to broader goals, or limited opportunities to develop new skills.
Lacking engagement, employees can quickly turn to social loafing—not putting in as much effort under the assumption that the other group members will carry their load. In the worst case, the employees will leave for more fulfilling roles.
Ineffective communication
Miscommunication or a lack of clear communication is a relatively minor mistake with potentially devastating consequences. History has many examples of such cases. In the workplace, it creates confusion, frustration, and inefficiency.
Employees who feel they are not receiving essential updates or are left to guess about their roles and responsibilities may experience high levels of stress. Everyone wants to be in the loop. And if they are left out for too long, poor communication erodes trust and can lead to disengagement and turnover.
Employee Retention Statistics
The following statistics highlight the challenges discussed above. These data points can be the basis of effective employee retention strategies you can apply to counteract turnover.
1. 52% of employees worldwide (48% in the Philippines) are either actively seeking a new job or exploring opportunities.
Over half of the workforce is actively seeking better opportunities, highlighting how quickly businesses can lose talent if they don’t offer competitive benefits and career growth. This trend indicates a fluid job market, making effective talent retention strategies more important than ever.
2. 28% of workers say they are likely to switch employers in the next 12 months, an almost 50% increase from the 19% recorded during the Great Resignation of 2022.
The sharp increase in workers planning to switch employers shows increasing levels of dissatisfaction. Compared to the Great Resignation following the pandemic, this spike signals intensifying retention challenges, with employees demanding more from their employers regarding compensation, flexibility, and job satisfaction.
3. 45% of employees report a significant increase in their workload over the past year, while 62% say that the pace of change has also increased.
Almost half of employees are experiencing increasing workloads, and the rate of this growth is ramping up. As a result, many are beginning to feel overwhelmed. Companies must address these issues by balancing workloads and offering support to help workers navigate rapid changes without compromising their well-being.
4. 54% of workers feel they lack opportunities to learn new skills.
Employees who feel they lack opportunities for skill development are more likely to seek jobs that offer professional growth. To retain talent, companies must invest in upskilling programs and establish clear career progression paths, ensuring that employees feel supported in their personal development.
5. 67% of employees experiencing poor work-life balance attribute it to factors related to their jobs or workplace culture.
When work-life balance suffers due to job demands or workplace culture, employees are more likely to burn out and seek alternative employment. Addressing work-life balance by offering flexible schedules and promoting a supportive culture can reduce turnover and boost morale.
6. 62% of employees don’t find their work engaging.
Disengagement leads to lower productivity and higher turnover, as employees who lack passion for their work are less likely to stay long-term. To combat this issue, companies should prioritize creating meaningful work and fostering a culture where employees feel connected to the company’s mission and goals.
How to Retain Your Best Employees
Nico Chiong, an industry veteran from Manila Recruitment, has identified the best way to retain employees besides throwing money at the problem. He said:
All other strategies will always have routine feedback as a foundation for employee retention. Keeping your team in the loop about discussions, being transparent about information, and showing how feedback can benefit their day-to-day work shows that your organization cares about an employee’s professional growth.
Essentially, employees want to feel valued as integral members of the organization, not just as revenue producers. Regardless of whether there’s an official employee retention program, the best way to achieve this is through consistent and crystal-clear communication.
Based on that answer, here are five feedback-related ways to satisfy your best workers.
1. Promote transparency
Being open about company decisions, goals, and changes fosters a culture of trust and collaboration. When kept informed about important updates, employees feel more connected to the organization’s mission and are more likely to align their efforts with business objectives.
It’s also much easier to accept management decisions when you clearly express the reasoning behind them. Transparency shows employees that they are valued partners in the company’s success, not just revenue generators.
2. Clarify expectations
Clear communication of roles, responsibilities, and performance goals ensures that employees know exactly what is expected of them. This effort prevents misunderstandings, reduces frustration, and allows workers to focus on achieving measurable targets.
When employees understand how their contributions fit into the bigger picture, they are more likely to stay engaged and motivated to meet or exceed expectations.
3. Encourage two-way communication
Relationships thrive on input and action from all parties involved. Creating an open-door policy that encourages employees to voice their concerns, share ideas, and ask questions without fear of judgment or retaliation helps foster a supportive environment.
This type of communication encourages collaboration and innovation while also helping managers identify and address potential issues before they escalate. Employees who feel heard and respected are more likely to stay committed to the organization.
4. Act on feedback
It’s not enough to gather employee feedback; you must also act on it. For example, if multiple people repeatedly report an issue that you then take steps to fix, they will appreciate it greatly. They see that their input leads to real changes in the workplace and that their opinions are valued.
Conversely, failing to take action sends a message that the organization does not value employees’ concerns. Visible positive changes reinforce their sense of belonging and contribution, making them more likely to stay long-term and continue offering constructive feedback.
5. Recognize achievements
Regularly acknowledging and celebrating employee successes—whether big or small—boosts morale and motivates them to maintain or exceed their performance. This celebration is especially important during periods of low morale, as small wins can mean much more.
Public recognition shows that their hard work doesn’t go unnoticed and creates a positive atmosphere where employees feel appreciated. When workers feel valued, they are more likely to stay loyal to the company and continue contributing at a high level.
Invest in Communication, Reap Retention Rewards
As highlighted in the introduction, employee retention involves more than just competitive salaries—it requires fostering a supportive, transparent environment where workers feel valued and heard. By emphasizing clear communication, regular feedback, and recognition, you can create a workplace that motivates your best employees to stay.
However, effective retention demands a strategic approach and insightful planning. If you’re ready to build a stronger, more engaged team, Manila Recruitment is here to help.
As a Philippine recruitment agency with expertise in talent acquisition and retention strategies, Manila Recruitment is committed to guiding you every step of the way. Contact us today to learn how we can support your business.
Passionate about promoting the ingenuity of Filipino talent, Arvin is a sought-after resource person in the field of career development. He regularly delivers keynote speeches and conducts workshops throughout the Philippines, sharing his insights and strategies for improving employability and promotability.
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