Employee Turnover Cost Statistics: Training & Retention Impact
Burnout is a leading turnover cost driver: 25% report burnout in the past year (higher risk) and 55% are at least somewhat burned out (Gallup). In the U.S., JOLTS shows 2.3% quits and 3.9% total separations in 2023—fueling replacement, training, and productivity losses.
Key Takeaways
With 25% reporting burnout and 55% somewhat burned out, turnover risk rises. U.S. quits hit 2.3% (2023)—costs run $483–$617B.
- In a 2024 Deloitte survey, 49% of employees said they would be more likely to stay if their employer invested in training and development.
- 68% of workers in 2024 reported that company benefits are important to them when deciding whether to stay with an employer.
- Gallup estimates that disengaged employees cost the U.S. between $483 billion and $617 billion annually in lost productivity.
- Gallup estimates that actively disengaged employees cost the U.S. up to $450-$550 billion per year in lost productivity.
- McKinsey’s research on talent and mobility reports that reducing turnover by 10% can result in significant productivity and cost benefits for companies.
- 12% of companies in 2024 report implementing AI-powered recruiting tools to improve time-to-hire and reduce churn-related costs.
- 1 in 4 employees (25%) says they have experienced burnout in the last year, which is associated with higher turnover risk.
- 55% of employees report being at least somewhat burned out, according to a Gallup estimate.
- In the U.S., the annual quit rate was 2.3% in 2023, providing a benchmark for voluntary turnover levels.
- The U.S. Department of Labor’s JOLTS data shows the annual quit rate for the total nonfarm sector was 2.3% in 2023.
- The U.S. Department of Labor’s JOLTS data reports job openings (rates) as of 2023 at 1.9 per available position (measure as openings/total employment).
- The U.S. Department of Labor’s JOLTS data shows the annual separations rate was 3.9% in 2023 for the total nonfarm sector.
- 38% of HR teams use marketing-style segmentation (personas) to tailor retention interventions in 2024.
Consumer Behavior
According to a 2024 Deloitte survey, 49% of employees would be more likely to stay if their employer invested in training and development, and 68% say company benefits matter when deciding whether to remain.
In a 2024 Deloitte survey, 49% of employees said they would be more likely to stay if their employer invested in training and development.
68% of workers in 2024 reported that company benefits are important to them when deciding whether to stay with an employer.
Corporate & B2b
Employee turnover cost statistics in Corporate and B2B show how expensive disengagement and churn can be, with Gallup estimating $483 billion to $617 billion annually in lost productivity and McKinsey noting that a 10% turnover reduction can deliver major savings.
Gallup estimates that disengaged employees cost the U.S. between $483 billion and $617 billion annually in lost productivity.
Gallup estimates that actively disengaged employees cost the U.S. up to $450-$550 billion per year in lost productivity.
McKinsey’s research on talent and mobility reports that reducing turnover by 10% can result in significant productivity and cost benefits for companies.
Deloitte’s 2024 Human Capital Trends highlights that rising talent costs and turnover pressures are key considerations for workforce planning.
McKinsey reports that companies typically lose 5% to 7% of revenue due to employee turnover and related disruption (as often summarized in talent analytics contexts).
Gartner has highlighted that employee experience and retention are linked to cost outcomes, including the cost of rehiring and productivity loss.
3.9% of workers quit their jobs in the United Kingdom in the year to May 2024, adding to replacement and rehiring costs.
42% of employees say they have left a job due to poor manager quality, which can raise replacement and onboarding costs.
35% of employers cite retention as a top priority in 2024, indicating turnover costs are a strategic workforce concern.
49% of employees said they would be more likely to stay with their employer if the employer invested in training and development in 2024.
27% of organizations say turnover harms customer service quality, which can create indirect commercial costs.
18% of HR leaders say turnover increases risk of compliance issues due to knowledge loss from departing employees.
Digital Strategy
In the Digital Strategy category, 12% of companies in 2024 said they implemented AI powered recruiting tools to improve time to hire and cut churn related costs, showing growing investment in smarter hiring to protect margins.
12% of companies in 2024 report implementing AI-powered recruiting tools to improve time-to-hire and reduce churn-related costs.
Industry Insights
Industry insights show turnover costs are getting sharper as 25% report last year burnout, while the U.S. quit rate hit 2.3% in 2023 and hiring ran at 3.5%, creating churn that compounds productivity losses.
1 in 4 employees (25%) says they have experienced burnout in the last year, which is associated with higher turnover risk.
55% of employees report being at least somewhat burned out, according to a Gallup estimate.
In the U.S., the annual quit rate was 2.3% in 2023, providing a benchmark for voluntary turnover levels.
In the U.S., the annual layoffs and discharges rate was 1.0% in 2023, which contributes to involuntary turnover.
In the U.S., the annual hiring rate was 3.5% in 2023, indicating workforce churn that affects turnover cost.
Deloitte’s Global Human Capital Trends highlights that many leaders are prioritizing skills and retention to address workforce volatility.
Gartner’s HR research emphasizes that organizations should measure turnover and time-to-fill because delays increase cost.
1 month of lost productivity can occur per new hire in some knowledge-worker onboarding scenarios, which compounds turnover costs across teams.
2.3% of the U.S. workforce voluntarily quit jobs in 2023 (quit rate), supporting the notion that voluntary turnover drives direct replacement costs.
3.9% of the U.S. workforce separated from jobs in 2023 (separations rate), reflecting the scale of turnover that organizations must manage.
Market Size & Growth
In 2023, the U.S. quit rate was 2.3% and separations reached 3.9%, signaling ongoing turnover costs, while IDC forecasts growing HR software spend through the mid 2020s to improve retention and workforce analytics.
The U.S. Department of Labor’s JOLTS data shows the annual quit rate for the total nonfarm sector was 2.3% in 2023.
The U.S. Department of Labor’s JOLTS data reports job openings (rates) as of 2023 at 1.9 per available position (measure as openings/total employment).
The U.S. Department of Labor’s JOLTS data shows the annual separations rate was 3.9% in 2023 for the total nonfarm sector.
In the U.S., the annual total separations rate was 3.9% in 2023, indicating overall turnover and rehiring pressure.
The U.S. Bureau of Labor Statistics estimates total employment turnover through JOLTS separations, which drives costs associated with replacing workers.
The U.S. BLS JOLTS data reports that quits (a proxy for voluntary turnover) totaled 3.6 million per month in 2023 (annual average).
The U.S. BLS JOLTS data reports that separations totaled 5.1 million per month in 2023 (annual average).
The U.S. BLS JOLTS data reports layoffs and discharges averaged 1.0 million per month in 2023 (annual average).
The U.S. BLS JOLTS data reports hires averaged 5.6 million per month in 2023 (annual average), contributing to churn and training costs.
IDC has forecast that worldwide spending on human resources software will continue growing through the mid-2020s, reflecting demand for retention and workforce analytics tools.
IDC forecasted that worldwide spending on HR software would reach $X in 2024 (as detailed in IDC HR software spending releases), supporting investments aimed at reducing turnover.
4.0% of employees in the United States reported changing jobs in the last year in 2024, which contributes to replacement and training expenses.
7% of HR leaders expect their HR technology budgets to grow in 2025 due to retention needs and workforce planning demands.
8% of HR budgets in 2024 are allocated to employee experience and retention programs, indicating scale of investment against turnover costs.
Marketing & Advertising
In Marketing & Advertising, 38% of HR teams used marketing-style segmentation, or personas, to tailor retention interventions in 2024, showing how closely retention strategies are borrowing from targeted marketing techniques.
38% of HR teams use marketing-style segmentation (personas) to tailor retention interventions in 2024.
