According to new data released by Talentuch, a recruitment firm specializing in IT and tech talent, the annual employee turnover rate in the U.S. has climbed to 19.3%, with 13% leaving voluntarily. That’s a notable rise from the pre-2020 average of 17.8%, signaling what could become a long-term retention crisis.
The bottom line? Companies are bleeding talent—and cash. With the cost of replacing a single employee ranging from 50% to 200% of their annual salary, retention isn’t just an HR issue anymore—it’s a business continuity imperative.
Why People Are Really Quitting
While the “Great Resignation” headlines may have faded, the underlying drivers of voluntary attrition remain strong—and frustratingly familiar. Talentuch’s research highlights five primary reasons employees are choosing to leave:
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Better Pay (63%) – The majority of job-leavers are chasing larger paychecks.
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Career Stagnation (41%) – Lack of upward mobility remains a dealbreaker.
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Work-Life Balance (38%) – Flexibility and burnout mitigation are now non-negotiables.
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Bad Leadership (35%) – Employees don’t leave jobs; they leave managers.
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Insufficient Benefits (32%) – Poor healthcare and retirement options are pushing workers away.
These aren’t new complaints—but in a labor market still adjusting to hybrid work, inflation, and digital transformation, they’re more urgent than ever.
What Top Retainers Are Doing Right
It’s not all doom and churn. Talentuch’s report also spotlights strategies from companies that are successfully keeping their teams intact. Across high-retention employers, six priorities stand out:
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Fair Pay – Regular, market-aligned salary reviews.
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Clear Career Pathways – Roadmaps for advancement and internal mobility.
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Flexible Work Models – Remote and hybrid options that respect employees’ time.
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Leadership Development – Training managers to recognize, support, and retain talent.
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Robust Benefits – Mental health coverage, childcare assistance, and more.
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Proactive Analytics – Using AI and data insights to catch red flags before resignations happen.
The throughline? Empathy backed by action, powered by real-time intelligence—not guesswork.
The Cost of Inaction Is Rising
Voluntary attrition isn’t just an HR metric—it’s a strategic threat. In tech-driven industries especially, where institutional knowledge and specialized skills are hard to replace, churn can kneecap innovation and delay delivery cycles.
And the pressure’s on for leadership. While some firms continue to push for full in-office mandates and cost containment, employees are making their preferences clear: flexibility, purpose, and opportunity are worth more than perks and platitudes.
Free Retention Strategy Session: July 9, 2025
To help HR leaders and business executives navigate this shifting landscape, Talentuch is hosting a free virtual session on July 9, 2025. The session will unpack practical, data-backed strategies for employee retention, drawing on the firm’s deep expertise in IT and tech hiring.
With turnover trending upward and talent pipelines tightening, this may be the right moment for organizations to stop treating retention as a reactive tactic—and start treating it like the growth strategy it really is.
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