Employee Turnover Statistics

Turnover is costing Australian businesses more than ever — and the reasons employees are leaving go well beyond salary. 

This article pulls the sharpest, most recent data across industries, age groups, and company sizes to give you a clear picture of where retention stands in 2025–2026 and what's actually working to fix it.

Overall Turnover Rates

• The 12-month average employee turnover rate across Australian organisations is 16%. [1]
• 34% of Australian organisations report turnover at or above 20% — the highest proportion since records began. [1]
• 61% of Australian employees plan to change jobs in 2025. [4]
• 51% of U.S. employees are watching for or actively seeking new jobs — the highest self-reported turnover risk since 2015. [8]
• 42% of employee turnover is considered preventable. [9]

Size & Industry Variation

• Small Australian organisations (2–19 employees) average 11% annual turnover, compared to 15% for medium organisations (20–199) and 21% for large organisations (200+). [1]
• Of all Australian industries, construction has the highest average turnover rate at 21%; distribution has the lowest at 13%. [1]
• Retail and hospitality has the highest proportion of businesses with high turnover — 40% of organisations in these sectors experience turnover above 20%. [1]

Why Employees Leave

• Lack of competitive salary is cited by 60% of employees as a reason for considering a move. [4]
• Excessive workload is the most frequently identified departure reason among Australian employers, cited by 26%. [1]
• Inadequate recognition is a factor for 37% of employees considering leaving. [4]
• Lack of career progression influences 35% of employees. [4]
• Too few learning and development opportunities accounts for 19% of exits in Australia. [1]
• Only 23% of employees globally report feeling engaged at work. [5]

Age & Generational Trends

• Workers aged 15–24 in Australia have a job mobility rate of 11.5% — nearly double the national average of 7.7%. [2]
• 86% of Gen Z employees are looking for a new role in 2025, compared with just 29% of Baby Boomers. [4]
• Of the 2.4 million Australians who started a new job in the year to February 2025, 40% were aged 15–24. [2]
• Employees with two years or less of tenure are 38% more likely to search for a new job in the next 12 months. [10]

Cost of Turnover

• Each employee departure costs at least 50% of that employee's annual salary, rising to 150–200% for specialist or senior roles. [1]
• Deloitte estimates the cost of replacing a single employee ranges from 1.5 to 2 times their annual salary. [6]
• 22% of Australian employers cite high turnover itself as a direct cause of further skills gaps within their organisation. [1]
• 16% of employees across Australian organisations are perceived as not fully proficient in their roles. [1]

Burnout & Wellbeing

• 52% of Australian workers took at least one sick day in the past year despite not being physically unwell. [3]
• Of those taking non-physical sick days, 48% cited feeling mentally or emotionally burnt out as the reason. [3]
• 43% of Australian workers missed out on some of their annual leave entitlement; among workers aged 18–24, this rises to 55%. [3]
• 54% of Australian workers searched for a new job during 2025. [2]
• The proportion of departures driven by finding a better opportunity declined to 25% in 2025, down from 33% in 2022. [2]

Retention Strategies & Investment

• Learning and development, flexible working, and wellbeing support are the three most-used retention measures among Australian employers, each deployed by 36% of organisations. [1]
• 58% of Australian employers plan to increase training investment over the next 12 months, up from 37% in early 2024. [1]
• 93% of Australian organisations now maintain a dedicated training budget. [1]
• Companies offering flexible work arrangements report a 55% increase in employee loyalty. [7]
• Organisations that promote internally retain employees 41% longer than those that do not. [4]
• Employees who receive meaningful recognition are four times more likely to be engaged and five times more likely to stay with their employer. [5]
• Only 22% of employees feel consistently recognised at work. [4]

FAQs

Why are employees leaving at such high rates right now? 

Burnout, lack of recognition, and no clear path to grow are quietly building long before people actually resign.

Does company size affect retention?

Yes — smaller teams tend to retain better because employees feel more visible and issues get addressed faster.

Is it too late to act if turnover is already high?

No, but the longer it's left, the harder it is to break the cycle of skills gaps, heavier workloads, and further departures.

Is it all about salary? 

Not anymore. Flexibility, feeling valued, and seeing a future at the company now matter just as much.

References

[1] ScaleSuite — Australian Employee Turnover Statistics 2026 (AHRI)

[2] ScaleSuite — Australian Employee Turnover Statistics 2026 (Australian Bureau of Statistics)

[3] ScaleSuite — Australian Employee Turnover Statistics 2026 (Employment Hero)

[4] Perkbox — Beyond the Paycheck: Employee Retention 2025

[5] Perkbox — Beyond the Paycheck: Employee Retention 2025 (Gallup)

[6] Perkbox — Beyond the Paycheck: Employee Retention 2025 (Deloitte)

[7] Perkbox — Beyond the Paycheck: Employee Retention 2025 (Harvard Business Review)

[8] Paycor — 13 Employee Retention Statistics Employers Need to Know 2025 (Gallup)

[9] Paycor — 13 Employee Retention Statistics Employers Need to Know 2025

[10] Paycor — HR in 2025: Insights & Predictions

‍