A new study from the HR Research Institute reveals a critical mismatch between organizational priorities for employee retention and their actual implementation, creating workforce stability concerns across industries. The research shows that while 56% of top leadership rank employee retention among their top three priorities, only 23% of organizations rate their retention strategies as advanced. This gap between intention and execution highlights systemic challenges in current retention approaches.
Several key factors undermine retention initiatives, with lack of well-defined career paths leading at 60%, followed by work overload at 56%, and lack of skilled managers at 51%. These findings indicate organizations struggle to provide clear growth opportunities, manage workloads effectively, and develop competent leadership—all essential for maintaining committed workforces. The study further reveals that HR-related issues drive substantial turnover, with 64% attributed to inadequate manager training and 50% to poor overall employee experience, emphasizing the need for greater investment in leadership development and employee-centered workplace cultures.
In addressing these challenges, the research identifies artificial intelligence as a potential solution for improving retention rates. AI capabilities in identifying skill gaps and recommending personalized learning paths could enhance career development programs. The study found 49% of respondents believe AI can help identify skills gaps and recommend targeted training, while 40% see its potential in personalizing learning and development initiatives. As Debbie McGrath, CEO of HR.com, noted, these findings serve as a wake-up call for leaders to focus on developing career paths, improving management training and technology, and enhancing employee experience amid growing competition for talent.
The implications extend across all business sectors, with organizations failing to address retention challenges facing significant disadvantages. High turnover costs—including lost productivity, recruitment expenses, and onboarding time—can be substantial. To mitigate these issues, the study recommends prioritizing clear career progression paths, investing in comprehensive management training programs, and leveraging technology to enhance employee experience. Implementing AI-driven solutions for personalized career development represents another strategic approach.
For detailed insights, the full research report HR.com's State of Employee Retention 2024-25 is available for free download, offering in-depth analysis and recommendations. Additionally, a recording of the research webcast presentation Reducing the Brutal Costs of Unwanted Employee Turnover is available for on-demand viewing. As organizations navigate modern workplace complexities, addressing the disconnect between retention priorities and practices will be crucial for maintaining competitive advantage and fostering stable, engaged workforces. The study underscores that effective retention strategies require concrete action and commitment to environments where employees can thrive.
