New Study Reveals Critical Disconnect in Employee Retention Priorities

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. 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, including lack of well-defined career paths, work overload, and lack of skilled managers. A significant portion of turnover is being driven by HR-related issues, pointing 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 by identifying skill gaps quickly and recommending personalized learning paths. Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized the need for companies to focus on developing career paths, improving management training and technology, and enhancing the employee experience to boost long-term retention. 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.