Employee turnover is one of the most important workforce metrics for any organization. It shows how often employees leave and need to be replaced, which directly affects costs, productivity, and team morale. Companies track turnover not only to understand their own workforce health but also to see how they compare with others in the same field.
Different industries have very different turnover patterns. While some sectors experience constant churn due to seasonal hiring or entry-level roles, others enjoy long-term stability thanks to career security and benefits. Looking at average turnover rates by industry provides valuable context for employers, HR teams, and business leaders who want to measure their performance against industry standards.
Average Turnover Rates by Industry
Average turnover doesn’t look the same across all sectors. Some industries naturally experience higher churn due to job demands, work environments, or pay structures, while others maintain more stability because of career security and long-term benefits. Below is a breakdown of how average turnover compares across major industries:
Hospitality and Food Services
This sector consistently ranks at the top for turnover, often exceeding 70% annually. Seasonal hiring, part-time roles, and entry-level positions make it difficult for employers to retain workers long-term. Many employees view these jobs as short-term opportunities, which adds to the high churn and drives the average turnover higher than any other sector.
Retail
Retail jobs see turnover rates averaging around 60%, making it one of the highest across industries. Low pay, inconsistent schedules, and limited career growth drive many employees to leave quickly. The holiday season brings in temporary staff, which further increases turnover levels.
Healthcare
Turnover in healthcare ranges from 20% to 30%, with nursing positions often exceeding those averages. Stress, long hours, and emotionally demanding work frequently lead to burnout. Employers in this industry also face high replacement costs due to the specialized training required.
Manufacturing
Manufacturing turnover usually falls between 15% and 20%, much lower than service-oriented industries. Predictable schedules, union protections, and stable employment help workers remain longer. However, younger employees are less likely to stay long-term compared to older generations.
Technology
The technology sector averages about 13% turnover, though this can shift depending on company size and role. Skilled employees are in high demand, so many leave for better salaries or benefits elsewhere. Startups often see higher churn compared to large established firms with more stability.
Finance and Insurance
Turnover in finance and insurance typically averages 10% to 15%, among the lowest rates. Higher pay, strong benefits, and clear career ladders contribute to long-term employee retention. Workers in this industry often view their roles as secure, long-term career paths.
Education
The education sector averages 16% turnover, though numbers vary widely by state and school system. Teacher shortages and burnout remain key reasons for staff exits, especially in public schools. Administrative and support staff generally have lower turnover compared to classroom teachers.
Government and Public Sector
Government jobs have the lowest turnover rates, often below 10% on average. Strong pensions, healthcare coverage, and long-term job security keep employees in place for years. This stability is a sharp contrast to high-turnover industries like hospitality or retail.
High vs. Low Turnover Industries
Not all industries face the same challenges when it comes to turnover. Some jobs attract short-term workers or seasonal employees, while others encourage long-term careers supported by stability and strong benefits. Understanding which sectors fall into high or low turnover categories helps employers benchmark their performance more accurately.
High Turnover Industries
Hospitality, retail, and certain healthcare roles are among the highest turnover industries. These jobs often come with demanding schedules, lower wages, and fewer advancement opportunities, which makes it harder to retain staff. Seasonal employment also adds to the churn, creating a cycle where businesses are constantly hiring and training new people.
Low Turnover Industries
On the other end of the spectrum, finance, education, and government positions usually have lower turnover rates. Higher salaries, retirement plans, and professional development programs encourage employees to commit for the long term. Public sector jobs, in particular, stand out for their strong job security and benefits that keep turnover consistently low.
Implications for Employers
Turnover rates carry serious weight for businesses, no matter the industry. High turnover can drive up recruitment costs, slow down productivity, and place extra stress on remaining staff. Even industries with traditionally lower turnover aren’t immune to challenges if they ignore employee satisfaction and engagement.
Benchmarking against industry averages allows employers to see if their own numbers are within a healthy range. If turnover is higher than the standard for their sector, it signals the need to re-evaluate pay, work conditions, or career development paths. For industries with historically high turnover, the focus often shifts toward building stronger support systems to reduce constant hiring cycles.
Companies that monitor turnover data regularly gain an edge in workforce planning. They can predict staffing needs more accurately, manage training resources effectively, and create retention strategies that address the real causes behind employee exits. Treating turnover rates as a diagnostic tool rather than just a statistic leads to smarter, long-term workforce decisions.
How to Improve Turnover in Any Industry
While turnover rates vary by sector, every employer can take steps to strengthen retention. Reducing employee exits doesn’t just protect the bottom line; it also builds a healthier, more productive workplace. The key is addressing the factors that consistently drive people to leave.
Employee Engagement and Recognition
Employees who feel valued are far less likely to look for other opportunities. Regular feedback, public acknowledgment of achievements, and meaningful rewards create stronger ties between staff and the organization. Even small gestures of recognition can have a significant impact on morale.
Competitive Compensation and Benefits
Pay and benefits remain major drivers of turnover. Employers that offer fair wages, health coverage, retirement plans, and flexible perks are more likely to hold onto their workforce. Staying aligned with industry standards ensures employees don’t leave simply for better offers.
Career Growth and Training Opportunities
Workers often leave when they feel stuck. Providing clear career paths, training programs, and skill development opportunities helps employees see a future with the company. Investment in professional growth encourages long-term commitment and loyalty.
Strong Onboarding and Support Systems
Turnover risk is highest within the first year of employment. A structured onboarding program helps new hires adjust faster, learn their responsibilities, and feel welcomed into the workplace culture. Pairing this with ongoing support reduces early exits and builds stronger teams.
Conclusion
Turnover rates reveal more than just how many people leave a company each year—they show the health of an industry’s workforce. High-churn fields like hospitality and retail face ongoing staffing challenges, while sectors such as government and finance benefit from stability and long-term careers. By understanding these differences, employers can set realistic benchmarks and create smarter workforce strategies.
Every organization has the ability to influence its average turnover. With the right focus on employee engagement, fair compensation, career growth, and strong onboarding, companies can move closer to or even outperform industry averages. Contact at Refered to see how we can help you reduce average turnover, improve retention, and build a stronger workforce for the future.
