Employee turnover is more than just a statistic—it’s a real challenge that affects teams, disrupts workflows, and drives up hiring costs. Whether you are in tech, healthcare, or retail, you have undoubtedly witnessed how frequent staff turnover can lower productivity, lower morale, and give the impression that you are always backfilling positions. Stability is further hampered by average turnover rates in some industries, which can reach 60%.
So why are workers quitting? A lack of engagement, burnout, limited professional advancement, and a sense of undervaluation all contribute. The good news is that you don’t have to just accept turnover. You can retain your top employees for the long term by implementing the appropriate strategies.
Employers may rethink their internal referral programs, employee rewards programs, and retention techniques to make staff members feel genuinely appreciated, from cultivating a culture of appreciation to utilizing AI-powered engagement platforms like Advantageclub.ai.
Let’s dive into 25 practical to-dos that can help reduce the average employee turnover rate by industry and create a workplace where people don’t just work—they thrive.
Understanding Employee Turnover Rates
Employee turnover rate is a sign of what’s happening beneath the surface of a company. It reflects the strength of workplace culture, the effectiveness of leadership, and whether employees feel truly valued.
At its core, employee turnover rates measure how many people leave a company over a specific time frame.
Some turnover is normal, but when it starts creeping up, it’s often a red flag for deeper issues—poor management, lack of career growth, or disengagement. The U.S. Bureau of Labor Statistics report reveals that the rate of total separations across industries was 3.3% in February 2025. This is even after organizations are aware of the perils of disengaged staff and carry out some initiatives to enhance engagement.
Losing employees isn’t just inconvenient—it’s costly. In addition to the costs of hiring, training, and lost productivity, Gallup estimates that replacing managers and leaders costs roughly 200% of their income, replacing employees in technical roles costs 80% of their salary, and changing frontline employees costs 40% of their salary. And it doesn’t stop there. Burnout and increased turnover result from the pressure that departing employees place on those who remain. A vicious circle exists. The good news is that businesses can intervene before it’s too late by knowing employee turnover by industry.
Industry-Specific Turnover Trends in 2024
Technology Sector
With turnover rates as high as 13.2%, the tech sector has been experiencing a crisis. Employees are concerned about their job security as a result of mass layoffs, economic instability, and exhaustion. Stability, a better work-life balance, or just an employer who appreciates their contributions are what many are seeking. With competition for skilled talent remaining fierce, companies need to focus on engagement and retention more than ever.
How Tech Companies Can Turn It Around
- Implement AI-Powered Engagement Platforms: AI-powered engagement platforms, like Advantage Recognition, can help companies create personalized rewards and recognition programs.
- Regular Leadership Updates: Frequent updates from leadership can reassure employees and build trust. Uncertainty fuels turnover, so transparency is key.
- Encourage Feedback: Companies can learn what is and is not working by conducting regular pulse surveys. However, addressing employee issues has the greatest impact.
- Enhance Team Connections: Remote and hybrid teams may work together more easily, thanks to digital workplace solutions, which can lessen feelings of loneliness.
- Support Managers: Teach executives how to effectively lead remote and hybrid teams. A manager who is supportive and well-equipped can have a significant impact on employee retention.
Manufacturing
The manufacturing industry has long struggled with high turnover as employees seek out other options due to physically taxing work, lengthy shifts, and few possibilities for promotion. Employees are more likely to quit when they feel underappreciated, particularly as a result of unclear pay systems or a lack of appreciation. It takes a combination of acknowledgment, communication, and workplace enhancements to address these problems.
How Manufacturers Can Improve Retention
- Improve Communication: Employees want to feel included. Regular team huddles and clear updates from management keep everyone informed and engaged.
- Recognition Program: Employees who feel appreciated stay longer. Whether through bonuses, shout-outs, or small incentives, frequent recognition makes a difference.
- Leadership Visibility: Employees have a closer bond with the organization when senior leaders are visible, approachable, and involved.
- Greater Flexibility: Employees can better balance work and personal life with shift-swapping alternatives and shortened workweeks, which can help them avoid burnout.
- Invest in Technology: Using digital technologies and automating repetitive operations can reduce workload and increase productivity.
Retail and Wholesale
Turnover rate in retail and wholesale is nothing new, but at 4.1 for retail trade in February 2025, it’s a challenge that can’t be ignored. The reasons are clear—long hours, high-stress customer interactions, and minimal training leave employees feeling overworked and undervalued. When career growth feels out of reach and paychecks don’t match the effort put in, it’s only natural for employees to start looking for better opportunities.
How Retailers Can Keep Their Best Employees
- Adequate Training: No one likes feeling unprepared. A solid training program helps employees feel confident in their jobs, leading to better performance and higher job satisfaction.
- Shorter Shifts: Exhausting shifts lead to burnout. Offering shorter shifts with more frequent breaks can help employees manage stress and stay energized.
- Employee Assistance Programs (EAPs): Retail can be emotionally and physically draining. Employee Assistance Programs (EAPs) provide mental health resources, financial counseling, and wellness support, helping employees manage challenges inside and outside of work.
- Transparent Compensation: Unclear pay structures lead to frustration. Make sure employees know what they’re earning, what bonuses they qualify for, and what benefits they can access—including a well-being allowance, if possible.
- Recognition Tools: A simple “thank you” or a shout-out from a manager can boost morale. Implementing a peer-to-peer recognition program lets employees celebrate each other’s efforts, creating a culture where people feel valued.
Banking and Finance
The finance sector is seeing 2.0 turnover, with younger employees—especially Gen Z and Millennials—leading the exodus. They’re looking for more than just a paycheck. They want career growth, flexibility, and transparency around pay and promotions. When these expectations aren’t met, they don’t hesitate to explore better opportunities.
How Financial Institutions Can Retain Their Talent
- Transparent Pay Structures: Employees don’t want to guess their future. Clearly outline pay scales, promotion paths, and career growth opportunities so they see a future with your company.
- Embrace Flexibility: The traditional 9-to-5 model isn’t appealing anymore. Offering remote work, flexible schedules, and hybrid options helps employees maintain a better work-life balance.
- Employee Growth: Finance professionals want to advance in their careers. Supporting them in earning industry certifications, providing mentorship, and setting up internal career development programs will keep them engaged.
- Visible Recognition: A private pat on the back is nice, but public recognition carries more impact. Highlight employees’ achievements in company meetings, internal newsletters, or recognition platforms to make them feel truly valued.
- Unique Benefits: Stand out with unique benefits like student loan assistance, financial wellness programs, or paid volunteer days. And make sure employees actually know about these perks—many benefits go unused simply because no one talks about them.
Healthcare
Being a healthcare professional is more than just a job; it’s truly a calling. Yet, it’s alarming to see that turnover rates of employees in healthcare have touched 2.8 in February 2025. Many caregivers are feeling overwhelmed, grappling with long hours, mental fatigue, and constant exposure to health risks. Even the most dedicated professionals start to wonder if it’s worth sticking around when they feel so unsupported.
How Healthcare Organizations Can Improve Retention
- Career Growth: People look for a future in other companies when they don’t see one in the current one. Provide training courses, mentorship, and tuition assistance to help them progress. Employees must be aware that there is a way forward, whether that means taking on a leadership role or developing a new area of expertise.
- Leadership Training: The right manager can make even the hardest days feel manageable. Make sure your leaders are equipped to recognize burnout, offer emotional support, and lead with empathy. Their influence shapes the day-to-day experience of your teams more than you might think.
- Open Communication: Healthcare moves fast—and so do the changes. Keep your teams informed with regular updates, town halls, and approachable leadership. When people feel informed and included, they’re more connected to the mission.
- Support Employee Well-being: Health workers are pouring their hearts into caring for others every day. They deserve the same in return. Mental health resources, access to counseling, and stress management tools should be part of the everyday support system, not just an afterthought.
- Employee Feedback: People want more than a suggestion box. Create real channels for employee feedback—pulse surveys, team check-ins, or listening sessions—and most importantly, follow through. When employees see their input driving change, trust and morale soar.
The Role of Employee Wellness in Reducing Turnover
When workers believe they are respected as persons as well as employees, they are more inclined to stay with the company. Therefore, providing employee wellness programs such as Advantage Wellness cannot be an option or a nice-to-have benefit. These wellness efforts tackle the everyday stress that wears people down—often long before they hand in their notice.
There’s solid evidence that wellness initiatives really do make a difference. Just look at Earned Wage Access (EWA). This allows the workforce to access their wages before payday and can significantly reduce their financial stress. Peace of mind can improve focus, boost morale, and create a deeper loyalty to the company.
Leveraging AI for Employee Engagement and Retention
Gone are the days of guessing what employees want. With tools like Advantage Pulse, companies can actually listen—in real-time. These AI-powered platforms pick up on how employees are feeling, what’s working, and what’s not—so issues get addressed before they turn into exits.
It’s about working smarter, not harder. Instead of throwing out one-size-fits-all initiatives, you can tailor your approach—whether it’s recognition, rewards, or support—based on what your people actually care about. Additionally, the HR team can concentrate on what truly matters—creating genuine connections—by letting AI handle the laborious data and analysis tasks.
Employee Rewards and Recognition
The fact is that individuals stay around when they feel appreciated. Acknowledgment conveys the message that “you matter here” and goes beyond a simple pat on the back. And when done well, that message can have a tremendous impact.
AI personalizes recognition, which makes it more heartfelt. Perhaps one employee enjoys being the center of attention, while another would rather have coffee and a quiet thank-you. Being aware of those inclinations enables you to produce authentic, unstaged moments. Points, benefits, or public shoutouts all aim to make people feel seen and valued in a way that resonates with them.
The Future of Employee Retention
The rules are shifting as Gen Z enters the workforce. They’re not just searching for a paycheck. They seek meaning, adaptability, and a good balance between work and life. And if they don’t get these, they don’t hesitate to go.
Accordingly, remaining in tune—listening, adjusting, and presenting yourself to employees in ways that feel genuine—is the key to retention in the future. Companies that prioritize well-being, make smart use of AI, and keep recognition human and heartfelt won’t just keep their people—they’ll inspire them to excel.
