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Average Turnover Rates by Industry
How is your business doing compared to industry averages? Understanding your employee turnover rate in relation to what is typical can give you a good gauge of that.
According to Gallup, a turnover rate of less than 10% is considered healthy, regardless of industry. At the same time, having a turnover rate of less than 1% can signify a lack of organic mobility within your organization, stifling promotions and advancement for others.
The Cost of High Employee Turnover Rates
High turnover rates can be costly for organizations due to the expenses associated with recruiting, hiring, and training new employees. It can also impact team morale and productivity. Analyzing turnover patterns can help companies address underlying issues and improve retention strategies.
Beyond the obvious expenses, the financial impact of turnover is significant. According to the 2023 Retention Report from Work Institute, the cost of every resignation remains at around 33% of the outgoing employee’s base salary. This means that frequent departures can quickly add up, straining your budget and resources.
But the effects go beyond dollars and cents. In fact, 73% of hiring managers believe that employee turnover places a heavy burden on remaining employees, potentially harming engagement and morale. The ripple effects can include increased workloads, decreased job satisfaction, and even further turnover—a cycle no organization wants to be caught in.
By understanding and addressing the true costs of turnover, businesses can prioritize initiatives that keep their teams engaged and reduce both financial and cultural strain.
Defining Employee Turnover
To get more specific, employee turnover refers to the rate at which employees leave a company and are replaced by new hires, or the number of employees you have at the end of the year divided by the number of employees you have at the beginning of the year. You can also use this rate to calculate employee retention with this following formula:
Reports usually express turnovers as a percentage. While you can measure it on a yearly basis, it’s possible to calculate this figure over various periods, such as monthly or quarterly. Turnover can be classified into two categories:
- Voluntary: When employees choose to leave the company. This can be for a variety of reasons such as career advancement, leaving a bad boss, pursuing better compensation, or other personal reasons.
- Involuntary: When employees are terminated by the company, they are not leaving on their own will. This can occur due to a layoff, performance issues, organizational restructuring, or other reasons.
Why Employee Retention Matters
Keeping employees around isn’t just a “nice-to-have”—it’s essential for a thriving business. Companies that are successful at retaining their teams tend to see a boost in workplace engagement, a stronger organizational culture, and more consistent customer service.
When employees leave, however, the effects ripple beyond simply filling a vacancy. There are significant direct costs, like recruitment and training expenses, but also indirect consequences, such as increased stress on remaining staff, dip in morale, and possible loss of valuable organizational knowledge. In fact, studies estimate that replacing an employee can cost about a third of their annual salary. Add to that the strain placed on current employees, and it’s clear that high turnover reaches far beyond the HR department.
In short, focusing on retention helps organizations save money, maintain momentum, and create a more motivated and cohesive workforce—all crucial components for long-term success.
National Average Employee Turnover Rates
According to recent YOY data from the U.S. Bureau of Labor Statistics, the national average employee turnover rate across all industries is 3.6%. However, this rate is different by industry and industry subcategories.
Average Employee Turnover Rate by Industry
- Healthcare: 20.7%
- Technology: 13.2-18.3%
- Public Education: 16%
- Aerospace 6.7%
- Arts & Entertainment: 6.4%
- Leisure, Hospitality, & Food: 6.3%
- Professional and Business: 4.7%
- Retail Trade: 4.5%
- Mining and logging: 4.2%
- Private Education and Health: 3.4%
- Construction: 3.9%
- Trade, Transport, and Utilities: 3.9%
- Manufacturing: 2.7%
- Information: 2.7%
- Finance & Insurance: 1.6%
- Government Jobs: 1.3%* (See Update on Government Job Turnover Rate: February 2025)
As you can see, certain industries are more likely to experience higher employee turnover than others. Stabilizing these rates should be top priority for businesses, as losing talent and onboarding new candidates costs a lot of time and money.
If you notice a higher-than-normal turnover rate, it’s important to evaluate your business practices and see if there are any ways you can improve your employees’ experience. Do they have adequate compensation? Is your work culture healthy? Are there common complaints that need to be addressed? Getting to the bottom of why people leave a place of employment will help you create an environment in which talent is most likely to stay.
How Healthcare Organizations Can Support Their Teams and Reduce Turnover
With healthcare turnover topping the charts, organizations in this sector face a unique set of hurdles. The emotional aftermath from difficult patient situations, high-stress environments, and long shifts can wear down even the most dedicated professionals. To keep their best people engaged, healthcare leaders must go beyond standard retention tactics.
Here are actionable steps for supporting and retaining your healthcare employees:
- Invest in Professional Development: Create clear pathways for advancement, ongoing training, and skill-building. Programs like clinical ladders or tuition reimbursement not only enhance team competency but also instill a sense of purpose and possibility.
- Prioritize Leadership Training: Equip supervisors and managers with the tools needed to recognize burnout, facilitate team support, and foster trust. The best leaders know how to listen and advocate for their staff.
- Open the Lines of Communication: Encourage honest, transparent conversations between staff and leadership. Regular town hall meetings, anonymous surveys, or open-door policies signal to employees that their voices matter—and that management is listening.
- Strengthen Employee Wellbeing Initiatives: Go beyond a generic benefits package. Consider mental health resources, counseling services, and resilience training. Partnerships with organizations like the American Nurses Association or Mental Health America can bring in specialized support.
- Create a Feedback-Driven Culture: Make it easy for employees to share their experiences. Regular pulse checks, stay interviews, and follow-up on feedback show that the organization is committed to continuous improvement.
The bottom line? When healthcare organizations put intentional support structures in place and demonstrate genuine care for their employees’ growth and wellbeing, they’re more likely to hold onto top talent—transforming high turnover from a chronic headache into a manageable challenge.
Prevent High Turnover by Offering Competitive Pay and Benefits
In our 2025 Recruitment Trends Report which is to be released later this year, we found that companies that offer desirable benefits make happier employees. Data pointed to younger generations desiring different types of employment perks compared to their predecessors. Here is a sample of the information you can find when we release our report later this year. Stay tuned for more insights that can aid your retention game!
Average Employee Turnover Rate by Industry
Understanding the average turnover rate in your industry provides valuable insights for both employers and employees. Industries with high turnover often reflect challenges such as job dissatisfaction, inadequate compensation, or intense work environments, while those with lower rates tend to benefit from more stable and engaging work conditions and good benefits.
By recognizing these patterns, organizations can develop targeted strategies to improve retention, enhance employee satisfaction, and ultimately foster a more productive and happy workforce.
Why Balancing Hiring and Retention Matters
While many organizations—nearly nine out of ten, according to recent surveys—plan to ramp up hiring to boost their teams, simply bringing in new faces isn’t enough to solve the turnover puzzle. High turnover isn’t just about filling empty desks; it also creates significant costs and drains valuable time and energy from your existing workforce.
That’s why it’s crucial to pay just as much attention to keeping your current employees engaged and satisfied as it is to recruiting new ones. Solid retention strategies—ranging from career development opportunities and competitive compensation to fostering a positive workplace culture—can help reduce the churn. In fact, companies that invest in retention often experience better morale, stronger productivity, and a healthier bottom line.
How Healthcare Organizations Can Support Their Teams and Reduce Turnover
With healthcare turnover topping the charts, organizations in this sector face a unique set of hurdles. The emotional aftermath from difficult patient situations, high-stress environments, and long shifts can wear down even the most dedicated professionals. To keep their best people engaged, healthcare leaders must go beyond standard retention tactics.
Here are actionable steps for supporting and retaining your healthcare employees:
- Invest in Professional Development: Create clear pathways for advancement, ongoing training, and skill-building. Programs like clinical ladders or tuition reimbursement not only enhance team competency but also instill a sense of purpose and possibility.
- Prioritize Leadership Training: Equip supervisors and managers with the tools needed to recognize burnout, facilitate team support, and foster trust. The best leaders know how to listen and advocate for their staff.
- Open the Lines of Communication: Encourage honest, transparent conversations between staff and leadership. Regular town hall meetings, anonymous surveys, or open-door policies signal to employees that their voices matter—and that management is listening.
- Strengthen Employee Wellbeing Initiatives: Go beyond a generic benefits package. Consider mental health resources, counseling services, and resilience training. Partnerships with organizations like the American Nurses Association can bring in specialized support.
- Create a Feedback-Driven Culture: Make it easy for employees to share their experiences. Regular pulse checks, stay interviews, and follow-up on feedback show that the organization is committed to continuous improvement.
The bottom line? When healthcare organizations put intentional support structures in place and demonstrate genuine care for their employees’ growth and wellbeing, they’re more likely to hold onto top talent—transforming high turnover from a chronic headache into a manageable challenge.
How Much Voluntary Employee Turnover Is Preventable?
It may come as a surprise, but research indicates that roughly 75% of voluntary employee turnover can actually be avoided. In other words, most employees who choose to leave are doing so for reasons that organizations have the opportunity to address—such as workplace culture, management practices, recognition, and professional growth. By taking proactive steps to understand and improve the employee experience, companies can significantly reduce the number of team members who voluntarily walk out the door.
Update on Government Job Turnover Rate: February 2025
As of February 25, 2025, approximately 30,000 United States federal civil service workers have been laid off since the start of Trump’s second presidency. This is in addition to about 75,000 employees who accepted the U.S. federal deferred resignation program.
The mass layoffs, which primarily targeted probationary employees with less than one year of federal service, have affected various agencies:
- Department of Veterans Affairs: Over 1,000 employees let go.
- Department of Health and Human Services: Approximately 5,200 employees, including 1,300 from the Centers for Disease Control and Prevention (CDC).
- Department of the Interior: ~2,300 employees.
- Department of Agriculture: ~4,600 employees across various divisions.
- Department of Energy: Between 1,200 to 2,000 employees.
These layoffs and deferred resignations have certainly increased the turnover rate in federal government employment. While an exact percentage is not available, it’s clear that the rate has risen well above our previously stated 1.3% figure.
It’s important to note that these changes are recent and ongoing, with some agencies still in the process of implementing layoffs. The full impact on the federal workforce and its long-term consequences are yet to be fully determined.
Average Turnover Rates by Industry
As the business landscape continues to evolve, staying informed about industry-specific turnover trends will be crucial for navigating the complexities of talent management and building resilient, high-performing teams.
Building a candidate pipeline can also keep you prepared for the inevitable turnover that occurs in all industries. Contact Corporate Navigators today to get started on future-proofing your organization with vetted and interested candidates!
