The HR Research Institute’s new study reveals a critical disconnect between retention priorities and execution. While retention is universally recognized as vital, few organizations are effectively keeping their workforce engaged and satisfied.
"... companies must focus on developing career paths, improving management training and technology, and enhancing the employee experience, especially as competition for top talent grows."
According to the findings, 56% of top leadership identify employee retention as one of their top three priorities—or even the top priority. This sentiment is echoed by line managers, senior leaders, and HR professionals alike. However, just 23% of organizations rate their retention strategies as "top-notch" or “advanced,” revealing a significant gap between intention and execution.
The study identifies several key factors that are undermining retention efforts in organizations:
Lack of well-defined career paths (60%)
Work overload (56%)
Lack of skilled managers (51%)
A significant portion of turnover is being driven by HR-related issues, including the lack of proper training for managers (64%) and a poor overall employee experience (50%). This points to the need for stronger leadership development and a more employee-centered approach to work culture.
One of the study’s most promising insights is how artificial intelligence (AI) can be leveraged to improve retention rates. AI’s potential lies in its ability to identify skill gaps quickly and recommend personalized learning paths, helping organizations retain talent by improving both career development and training programs.
Identifying skills gaps and recommending targeted training (49%)
Personalizing and enhancing learning and development (40%)
"These findings are a wake-up call for leaders," stated Debbie McGrath, Chief Instigator and CEO of HR.com. “To boost long-term retention, companies must focus on developing career paths, improving management training and technology, and enhancing the employee experience, especially as competition for top talent grows.”
The full research report, HR.com's State of Employee Retention 2024-25, is available for free download and offers a detailed look at retention challenges and recommendations for business leaders looking to improve their retention outcomes in the near future.
The recording of the research webcast presentation, Reducing the Brutal Costs of Unwanted Employee Turnover, is available for viewing 24/7 on demand.
About HR.com and the HR Research Institute
The HR Research Institute (HRRI) helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest HR community, the HRRI identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings. Among the most productive and respected HR research institutes globally, the HRRI publishes dozens of high-quality reports every year across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 250 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Visit hr.com/hrresearchinstitute to maximize your HR potential.
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