goHappy, a leader in frontline employee engagement, has released its Q1 2025 State of the Frontline Worker Report, based on survey responses from 46,250 frontline workers across the US and Canada. The report establishes a clear link between employee engagement and business performance, proving that companies with highly engaged frontline employees experience significantly lower turnover rates than the industry average.
According to Shawn Boyer, Founder and CEO of goHappy:
“When frontline workers feel valued, connected, and supported, they not only help businesses combat high turnover rates, but they also drive productivity, customer satisfaction, and workplace culture.”
With the Society for Human Resource Management estimating that hiring a new employee costs $4,700, the financial impact of high turnover is substantial. However, goHappy’s data shows that organizations prioritizing employee engagement are seeing transformational improvements.
Findings from the Report
1. Engagement Directly Reduces Turnover
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Companies with engagement scores above 75% have a 12-month rolling turnover rate of 85%, which is a 14% improvement over the 99% turnover rate across all customers.
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Employers who actively invest in engagement strategies experience stronger retention and lower hiring costs.
2. The Cost of Disengagement
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Only 64% of frontline workers report being engaged.
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The result is a staggering 99% turnover rate, highlighting the urgency of improving engagement efforts.
3. Food Service Faces Unique Leadership Challenges
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Just 59% of food service employees believe their managers lead by example, compared to 72% in other industries.
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A lack of trust and leadership in frontline roles is a major contributor to high turnover.
4. Leadership Plays a Crucial Role
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Only 63% of frontline employees believe their manager fosters trust and leads by example.
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Frontline leaders directly shape employee experience, making leadership training a critical investment.
A Leadership Call to Action: How Companies Can Improve Engagement
The State of the Frontline Worker Report outlines key best practices to enhance engagement and reduce turnover:
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Fostering Open Communication: Creating a culture where employees feel heard and valued.
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Recognizing Employee Contributions: Regularly acknowledging and rewarding frontline efforts.
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Investing in Leadership Development: Training managers to lead by example and build trust-based workplaces.
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Leveraging Real-Time Feedback: Using tools like goHappy’s app-free engagement solutions to gather and act on frontline employee insights.
Real-World Success: Snooze, an A.M. Eatery
Jeremy Edmonds, Vice President of People and Culture at Snooze, shares how goHappy’s engagement tools helped the company reduce turnover:
“By leveraging goHappy to better understand our engagement score—above 75%—we enhanced our programs and reduced turnover to well below 85%.”
Final Thoughts: A Quarterly Look at Frontline Workforce Trends
goHappy’s State of the Frontline Worker Series is a quarterly report that provides valuable insights to help employers build stronger, more engaged teams. Each report focuses on key workforce challenges such as onboarding, benefits, turnover, and engagement.
The latest findings confirm: employee engagement isn’t just a perk—it’s a business necessity.
