Employee turnover reflects how often workers leave a company and need to be replaced, making it a key indicator of workplace stability. Certain industries consistently report high employee turnover due to factors like demanding schedules, limited growth opportunities, and high stress environments.
What Employee Turnover Really Means
Employee turnover refers to the rate at which employees leave an organization within a set timeframe, typically measured monthly or annually. This includes all departures – whether due to resignations, retirements, layoffs, or dismissals, and is usually shown as a percentage of the total workforce. A consistently high turnover rate often signals deeper workplace issues, such as low morale, poor management practices, or lack of career growth.
Turnover is generally categorized into two types: voluntary and involuntary. Voluntary turnover occurs when employees leave by choice, often for better pay, work-life balance, or career advancement. In contrast, involuntary turnover involves exits initiated by the employer, such as terminations or workforce reductions.
The True Cost Behind Turnover
Employee turnover carries both direct and indirect costs that can significantly impact a company’s bottom line. Direct costs include recruitment expenses, onboarding, and training new hires, which can amount to anywhere from 30% to over 100% of the departing employee’s annual salary. For specialized roles, the replacement cost can be even higher due to the time and resources required to find qualified candidates.
Indirect costs are often less visible but equally damaging. These include productivity loss, disrupted workflows, reduced team morale, and the loss of institutional knowledge. When employee turnover is frequent, it can also affect customer satisfaction and damage the company’s reputation, making it harder to attract and retain talent.
Industries with Notable Turnover Rates
Employee turnover affects industries differently, and some sectors consistently report higher rates than others. Below are key industries with notable turnover patterns based on recent data.
Retail & Wholesale
The retail and wholesale industry has a turnover rate of about 24.9%, one of the highest across sectors . This is largely due to part-time roles, inconsistent schedules, and seasonal employment cycles. Many retail jobs offer limited benefits and advancement opportunities, making them less appealing long term. Additionally, customer-facing roles in high-volume settings can lead to burnout. These conditions contribute to a constant need for new hires and ongoing training costs.
Healthcare
Hospitals report turnover rates around 20.7%, while nursing homes experience even higher attrition, sometimes exceeding 50%. Contributing factors include high stress, emotional labor, and staff shortages. Long shifts, demanding patient care, and limited administrative support further increase the pressure. The COVID-19 pandemic intensified these challenges, accelerating burnout and resignations. As a result, healthcare providers often face workforce instability and rising recruitment costs.
Technology
Employee turnover in the technology sector ranges from 13.2% to 18.3% depending on role and organization size. The fast-paced nature of tech work leads to frequent job changes and shifting career goals. Competitive salaries and remote opportunities make switching employers easier. Startups and fast-scaling companies often experience higher churn due to evolving work conditions. Knowledge loss and hiring delays can disrupt project timelines and innovation.
Travel & Hospitality
This industry regularly sees some of the highest turnover rates, peaking at 2.8% on a six-month rolling average. Many roles are seasonal, temporary, or part-time, with limited job security. Employees often face unpredictable hours, low wages, and high guest-facing stress. Burnout and a lack of advancement paths contribute to early exits. These dynamics make it difficult for employers to retain experienced staff.
BPO Industry (Philippines)
Business Process Outsourcing (BPO) companies in the Philippines report attrition rates between 30% and 40% annually . Factors driving this include night shifts aligned with global clients, mental fatigue, and repetitive tasks. Entry-level roles dominate the sector, offering minimal career mobility. Health-related issues tied to sedentary work and stress are also common. These conditions lead to high recruitment needs and operational strain across the industry.
Why These Sectors Face High Turnover
Employee turnover in industries like retail, hospitality, healthcare, and BPO stems from a mix of structural challenges. Below are five key contributors behind high turnover, each explained with real-world insights.
1. Low Pay and Inconsistent Compensation
Employees in frontline roles – especially in retail, hospitality, and call centers – often work for wages that leave little room for financial security. Research shows that low pay fuels a cycle of poor performance and unstable attendance, which further reinforces turnover patterns. When compensation doesn’t match the cost or stress of work, both morale and retention suffer.
This is especially visible in sectors like senior living, call centers, and retail, where turnover can exceed 100% annually.
2. Lack of Growth and Development
A persistent issue across industries is the absence of clear career progression. Work Institute data points out that a top reason for quitting is no apparent growth opportunities, with learning and development absence ranking highest year after year. Employees, particularly from younger generations, value professional growth highly and are more likely to leave stagnant roles. Without this, companies face constant hiring pressure and diminished employee motivation.
3. Poor Work Environment and Stress
Many jobs in hospitality, healthcare, and BPO involve high stress, emotional labor, and exhausting schedules. Studies on the hospitality sector highlight how unhealthy work conditions and poor communication contribute directly to turnover. In the tech sector, bullying and stressful project demands also raise turnover risks – a striking example of poor workplace culture driving churn.
4. Feeling Undervalued or Unrecognized
Employees who feel ignored or devalued are more likely to leave. A Gallup study found that a lack of respect and recognition contributed significantly to turnover risk – employees cited being treated with respect and seeing value in their work as key to staying. This disconnect between effort and acknowledgment can lead to disengagement and exits even in roles with adequate pay.
5. Poor Leadership and Management Practices
Weak leadership and inconsistent management are frequently cited as drivers of turnover. Employees often leave due to poor manager relationships, lack of support, or unethical behavior at the supervisory level. When leaders fail to engage or treat employees fairly, retention drops. This affects morale and fosters a workplace where departures become the norm rather than the exception.
Ways to Slow Turnover and Keep Teams Stronger
Reducing employee turnover requires more than just pay raises—it involves addressing the underlying reasons people leave. These strategies are supported by research and have shown measurable success across various industries.
1. Offer Flexible Work Arrangements
Flexible scheduling and remote work options help employees better balance personal and professional responsibilities. A growing number of companies report reduced turnover after adopting hybrid or remote models, especially post-pandemic. This is particularly effective for working parents, caregivers, and those in high-stress roles. Flexibility also signals trust, which boosts employee loyalty.
Pro tip: Offering even limited remote work can reduce attrition by as much as 50% in eligible roles.
2. Invest in Onboarding and Role Clarity
Effective onboarding is more than paperwork – it helps new hires understand their role and workplace culture. When employees are given a structured, face-to-face onboarding experience, they tend to stay longer and perform better. Confusion about expectations often leads to early exits, especially in fast-paced sectors like retail or call centers. Clear communication during the first 90 days is critical.
Pro tip: A strong onboarding process can improve new hire retention by up to 82%.
3. Encourage Career Growth and Development
Employees are more likely to stay when they see long-term potential with their employer. Providing access to training, mentorship, and internal promotions builds a sense of progression. Lack of advancement is a top reason for voluntary exits, especially among younger workers. Career planning conversations should happen regularly – not just during reviews.
Pro tip: Organizations that promote from within have 41% higher employee retention rates.
4. Use Strategic Task Sequencing
Research shows that how work is assigned impacts retention, especially in roles with repetitive or demanding tasks. When employees are given a balanced mix of easier and harder assignments, job satisfaction increases. Long stretches of difficult tasks without breaks can drive frustration and turnover. Reordering workloads to ease task flow can improve morale and engagement.
Pro tip: Strategic task sequencing has reduced quitting by up to 22% in controlled studies.
5. Provide Mental Health and Resilience Support
Mental health programs – like access to counseling, meditation apps, or resilience workshops – help employees manage stress more effectively. When staff feel emotionally supported, they’re more likely to stay and perform well. This is especially valuable in high-pressure sectors like healthcare and BPO. Employers benefit from fewer sick days and stronger overall morale.
Pro tip: Companies that invest in employee well-being report up to 28% less turnover.
6. Enhance Recognition and Inclusive Culture
Employees who feel seen and appreciated are more motivated to stay. Regular recognition – whether verbal, written, or public – boosts morale and connection to the company. Inclusive workplaces that respect all backgrounds create a stronger sense of belonging. These efforts directly correlate with better retention and performance.
Pro tip: Organizations with strong recognition cultures have 31% lower voluntary turnover.
Taking Action on Turnover Trends
High employee turnover isn’t just a statistic – it’s a signal that something needs to change. Whether it’s due to limited growth opportunities, inconsistent schedules, or lack of recognition, the reasons behind turnover are often within an employer’s control. Understanding which sectors are most affected and why allows companies to respond with practical, evidence-backed solutions.
Organizations that invest in flexibility, onboarding, career development, and employee well-being are better positioned to retain talent. These steps don’t just improve retention – they build stronger teams and healthier workplaces. For tailored guidance on improving your own workforce stability, contact Refered today.
