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Retention That Works

Retention is no longer a soft metric. With only 21% of workers engaged globally and preventable turnover still dominating exits, the business case for retention has never been stronger. [1][2]

Updated March 15, 2026 7 min read Retention strategy
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Executive summary

Work Institute reports that 63% of job exits in 2024 were preventable and that 40% of turnover happens within the first year. It also estimates that replacing an employee costs about 33% of base wages. At the same time, Gallup finds only 21% of the global workforce is engaged and estimates a $9.6 trillion productivity opportunity if engagement improves. [1][2]

What this means in 2026

Most turnover is preventable

With 63% of exits classified as preventable, retention plans should focus on managerial capability, role clarity, and growth pathways. [1]

First-year experience is decisive

Since 40% of turnover happens in the first year, onboarding and early feedback cycles must be designed like a retention program. [1]

Engagement is a growth lever

With global engagement at 21% and a $9.6 trillion productivity upside, engagement initiatives should be tracked like revenue drivers. [2]

Action plan for HR leaders

  1. Build first-year retention check-ins at 30, 60, and 90 days to reduce the 40% early turnover risk. [1]
  2. Prioritize manager coaching, role clarity, and career pathways to address the 63% preventable exits benchmark. [1]
  3. Quantify engagement goals in financial terms, given Gallup's $9.6 trillion global productivity opportunity. [2]
  4. Track retention ROI against the 33% base-wage replacement cost per exit to justify investment in employee experience. [1]
References

Sources

All statistics are sourced from the references below.

  1. Work Institute. 2025 Retention Report. (Turnover and cost benchmarks)
  2. Gallup. State of the Global Workplace 2025. (Engagement and productivity estimates)