US Companies See Employee Retention Drop by 1.5%
Talentuch Clients Share That They Faced a Growing Retention Crisis in Both Tech and Non-tech Spheres
Talentuch, a leading recruitment company for IT and technology businesses, has observed that employee retention rates across US companies have fallen by 1.5% over the past year, which shows a growing challenge for businesses nationwide.
The numbers tell a concerning story. Annual turnover in the US has climbed to 19.3%, with 13% of employees leaving voluntarily. Before 2020, turnover averaged just 17.8%. For businesses, this trend is expensive – replacing an employee costs anywhere from half to twice their annual salary.
Read More: The Workplace Power Struggle: Navigating the CEO-CFO-HR Divide
Why Employees Are Leaving
Research shows five main reasons workers are quitting their jobs:
– Better Pay (63%): Most employees who left last year wanted higher salaries
– Career Growth (41%): Workers feel stuck without clear paths to advance
– Work-Life Balance (38%): People want flexible schedules and reasonable workloads
– Bad Leaders (35%): Poor management drives good employees away
– Insufficient Benefits (32%): Workers seek better healthcare and retirement options
Companies that are successful in retention keep their workers focused on six key areas:
– Fair Pay: Regular salary reviews to match market rates
– Clear Career Paths: Show employees how they can grow
– Flexible Work: Offer remote or hybrid options when possible
– Better Leaders: Train managers to support and recognize their teams
– Strong Benefits: Add mental health support and childcare help
– Smart Data: Use AI analytics to spot problems before people quit
Talentuch is hosting a free online session on July 9, 2025, to share practical strategies for keeping your best employees.
[To share your insights with us, please write to psen@itechseries.com ]
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