According to a study, employers have 44 days to engage their new hires and ensure they stick around. 44% of new employees have regrets or second thoughts about their new gig within the first week, with 23% saying they were driven to tears second-guessing their decision.
A bad onboarding experience was often the culprit for these regrets. 65% said there needed to be more clarity about who could answer their first-week questions, 62% reported inadequate training on company products or services, and 51% had intrusive technology issues.
Employee onboarding is “the process of integrating a new employee with a company and its culture, as well as getting a new hire the tools and information needed to become a productive member of the team,” is an integral part of the employee experience. It comprises compliance issues, administrative work, training, and getting candidates excited about their new role. We’ve created a guide to onboarding best practices to ensure your strategy is solid.
These stats should concern employees and HR practitioners. Employee retention is costly—poor employee retention costs organizations trillions of dollars annually—for organizations across industries. 93% of organizations are concerned about their retention.
Turnover costs organizations trillions of dollars every year.
Additionally, both productivity and company morale take hits when employees turn over (especially when many employees turnover in quick succession). Creating and executing a strong retention strategy is vital to businesses and the HR platforms that serve them.
As leaders in the employee hiring and retention space, we’ve compiled this collection of employee retention statistics so that employers and HR tech providers can make data-driven decisions regarding strengthening employee retention efforts.
In 2023, the average employee turnover rate in the U.S. was 3.8%—2.5% of that turnover is attributed to quitting, while 1% is layoffs and firings. In this section, we’ll cover additional, timely data and stats that paint a picture of the current state of employee retention.
Retention data and stats can help organizations combat turnover. For example, 63% of employees who quit their jobs say a lack of career advancement was the primary reason for leaving. Employers and the HR platforms that serve them can create actionable paths for new hires that are advertised in job posts and discussed during the interview process to help improve retention from the get-go.
In this section, we’ll share retention stats that can help present employee churn.
As we’ve already indicated, offering stellar onboarding is one of the best ways to increase your retention. Following a negative onboarding experience, 20% of new hires decide they wouldn’t recommend their new company to friends, Bad onboarding also doubles the chances of a new hire looking for a new job. Strengthening onboarding is such a crucial part of a good employee retention strategy, that we’re giving it its own section.
Despite the importance of onboarding, 88% of companies admit they don’t onboard well.
Automating onboarding tasks resulted in a 16% increase in retention rates for new hires and an 18% improvement in initial performance. Yet, only 50% of companies want to increase their investment in onboarding tech. Employers can make themselves more competitive by investing in automated onboarding, while organizations that serve HR solutions to employers can make themselves more competitive by offering automated onboarding solutions.
One of the primary reasons for high turnover is poor onboarding and talent management practices. Employees who feel disconnected from the company’s mission or unsupported in their roles are far more likely to jump ship within the first year. An astounding 69% of employees are more likely to stay with a company for at least three years if they experience great onboarding. And yet, many organizations still rely on outdated methods that fail to engage new hires in meaningful ways.
This is where Talent Management Software (TMS) comes in. An advanced TMS can help companies provide structured onboarding, continuous learning opportunities, and streamlined performance management, all of which contribute to stronger employee retention. Investing in TMS isn’t just a smart move; it’s a business imperative in the very competitive talent landscape.
One of the biggest reasons employees leave is the lack of career advancement opportunities. Think about the impact of this on your company: 94% of employees would stay at a company longer if it invested in their career development. Employees today don’t just want a paycheck; they want to grow, learn, and advance in their careers.
A sophisticated TMS includes Learning Management Systems (LMS) that provide employees with personalized training paths, skill development resources, and mentorship programs. Companies can track learning progress and offer certifications that contribute to career advancement, giving employees clear pathways for growth.
Additionally, career development isn’t just about formal training. Employees crave mentorship, leadership programs, and cross-functional opportunities that expose them to different aspects of the business. A robust TMS helps HR teams design and implement rotational programs, peer mentoring, and leadership development initiatives that keep employees engaged and invested in their long-term future at the company.
Key TMS features for career development:
Gone are the days when annual performance reviews were sufficient. Today’s workforce craves real-time feedback, goal alignment, and recognition. A modern TMS provides continuous performance management, enabling managers to set clear goals, track progress, and give timely feedback.
With features like 360-degree feedback, peer reviews, and one-on-one coaching tools, a TMS fosters a culture of continuous improvement. Employees receive recognition for their efforts, leading to higher engagement and motivation.
Studies from Harvard Business Review indicate that companies shifting to continuous feedback systems see higher productivity, lower turnover, and stronger overall job satisfaction. This shift from rigid performance assessments to dynamic growth-focused conversations is only possible with the right technological tools in place.
Beyond feedback, performance management also includes goal alignment and succession planning. High-performing employees want to know how their work contributes to larger company objectives. TMS platforms allow companies to set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) and track progress in real-time, giving employees a sense of purpose and direction in their roles.
Key TMS features for performance management:
Disengaged employees are not just unproductive; they are expensive. Gallup estimates that disengaged employees cost businesses $450 to $550 billion annually in lost productivity.
A TMS with built-in engagement tools empowers organizations to measure employee sentiment and address concerns proactively. Engagement analytics provide invaluable insights that help HR leaders shape policies, improve workplace culture, and create a sense of belonging within the company.
Additionally, modern engagement strategies go beyond surveys. Gamification tools, employee resource groups (ERGs), and social recognition platforms within TMS create an interactive and inclusive workplace that fosters collaboration and morale.
Key TMS features for employee engagement:
AI is revolutionizing how companies manage their workforce. AI-driven TMS platforms leverage predictive analytics to identify employees at risk of leaving and suggest retention strategies. These systems can also automate repetitive HR tasks, allowing HR teams to focus on strategic initiatives rather than administrative work.
For example, AI-powered chatbots within a TMS can answer employee queries, recommend training programs, and provide instant feedback. Additionally, machine learning algorithms analyze workforce trends to help businesses make data-driven decisions about talent acquisition and retention.
HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable HR technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the Hiringthing HR platform empowers anyone, anywhere to build their dream team