Employee turnover is on the rise. In fact, 41% more Americans quit their job in 2022 than in 2020, with a total of over 50 million resignations last year alone. This increase in staff turnover over the last few years, sometimes referred to as the “Great Resignation,” has shed light on the importance of staff retention for organizations.  


Not only does finding and training new employees take a considerable amount of time, but it can cost organizations a considerable amount of money, too. According to the Association for the Development of Talent, organizations spend an average of $1,252 per employee on training and development.  


Why is Employee Turnover Increasing?


The American workforce is becoming increasingly younger as older workers retire and Gen Z enters it. Studies show that younger workers are more inclined to change jobs than their older colleagues, with a recent survey from LinkedIn finding that 72% of Gen Zers and 66% of Millennials are considering quitting their jobs this year, compared to 55% of Gen Xers and 30% of Baby Boomers. 


HR Professional Kelly Chan says younger generations put a premium on their mental well-being and work-life balance, and with the American workforce decreasing in median age, more emphasis needs to be put on retaining younger staff. 


As such, we’ve reached out to several HR experts to better understand what businesses can do to keep their Gen Z staff.  


HR Experts’ Tips for How to Reduce Employee Turnover


  1. Emphasize diversity and inclusion



A survey from Monster found 83% of Gen Z candidates believe that a company’s commitment to diversity and inclusion is important when choosing an employer. HR experts agree that aligning your company with the values of Gen Z employees goes a long way in retaining them.   


HR expert Kaymar K.S. said, “Gen Z workers look for a strong company culture that supports diversity, equity, and inclusion. They want to work for a company that not only talks about these values but also takes concrete actions to promote them. This includes hiring a diverse workforce, offering training and development programs to support diversity and inclusion, and creating a safe and welcoming workplace for all employees.” 


  1. Deploy green employee benefits


CEO Izzy Galicia, said, “For Gen Z and Millennials in the workplace, things like the environment and mental health are more important than for the older generations. Deploy greener employee benefits designed to inspire and engage the entire workforce.” Benefits Galicia recommends: 


  • Incentivize electric vehicles by providing office charging ports and offer to subsidize a percentage of the cost of home installations.   
  • Give extra vacation days to employees who choose carbon-friendly modes of travel instead of flying. 
  • Offer benefits to employees who come to the office during winter months to minimize energy-intensive residential heating. 
  • Consider a four-day work week, which allows more time for family and self-care while also cutting down on commute emissions. 


  1. Make room for pets



Many companies are now including pet insurance and on-site pet care as additional benefits for their employees. In fact, pet benefits play a major role in hiring and staff retention, especially for younger generations.  


  • 37% of Gen Z dog owners said they would take a pay cut to work for a pet-friendly company  
  • 64% of Gen Z would change jobs or reduce hours to spend more time with their pets 


Head of People, Piotr Sosnowski, said, “[Pets] are treated like family members, and your employees will most definitely want what’s best for their pets. So, if there are pet benefits available at your company, it is likely to increase employee job satisfaction, productivity, motivation, and overall happiness. This also means that talent acquisition and retention are more likely to have positive outcomes.” 


  1. Prioritize mental health


Mental health is increasingly becoming one of the biggest contributing factors to employee turnover, especially in young generations. “Gen-Z and Millennials prioritize work-life balance and their well-being far more than older generations,” says Kelly Chan. “If they feel that their current job does not allow them to achieve a healthy work-life balance, they may be more open to switching jobs in order to find a better fit that allows them to lead a more balanced life.” 


Lilian Chen, founder of Barr None Games, adds, “One of the most important things companies can do is to prioritize their employees’ mental health. Companies should provide resources and support to their employees to help them cope with the unique challenges associated with remote and hybrid teams.” 


  1. Be flexible on flexibility



One of the driving factors in retaining younger staff is flexibility on remote or hybrid work and working hours. CEO David Ciccarelli said, “Remote work and hybrid work are now table stakes. Employees know they can be productive at home and equally know that they can work for a company that’s headquartered anywhere.” 


Additionally, “Adequate vacation time will be appreciated, as well as other work-life balance initiatives. Many companies are starting to offer some version of ‘summer hours,’ where the company recognizes additional time off in the summer. We do ‘summer shut down days,’ where we shut down for an additional day on long weekends in the summer, making some 3-day weekends, 4 days.” 


Industries with the Best and Worst Staff Retention


In addition to understanding the steps businesses can take to limit employee turnover, we also wanted to look at which industries rank best and worst for staff retention.  


According to the Bureau of Labor Statistics, the federal government is the best at retaining employees, with just a 0.7% quit rate in 2022. On the other end of the spectrum is the accommodations and food services industry, which had a quit rate of 5.8% last year.  


The complete breakdown of the best and worst industries for staff retention is as follows: 








Total Employees


Voluntary Termination Rate


Number of Voluntary Terminations


Federal Government 








State and Local Government 








Finance & Insurance 
















Wholesale Trade 














Total Employees


Voluntary Termination Rate


Number of Voluntary Terminations


Accommodations & Food Services 








Retail Trade 








Professional & Business Services 








Arts & Entertainment 








Transportation, Warehousing, & Utilities









While prioritizing the needs of employees is the best way to improve staff retention, businesses also need to prioritize the needs of their customers. This includes providing customers with an easy way to contact your business, no matter where they or you are located in the world. Explore our range of virtual phone numbers to find a cost-effective solution to reaching global customers.