The U.S. employee turnover rate is continuing a downward trend after peaking in 2023.
That’s one of the findings of a survey conducted and recently released by a nonprofit employer association with Quad Cities ties.
MRA – The Management Association released new findings from its 2026 Turnover Survey, revealing that overall employee turnover was 21.7% in 2025, continuing a downward trend following the 2023 peak.
Headquartered in Waukesha, Wisconsin, MRA is the largest employer association in the nation, serving more than 5,000 organizations. For 125 years, it has provided HR expertise, compliance resources, training, and confidential peer forums that strengthen organizations and support leadership success. MRA has an office at 3800 Avenue of the Cities, Moline.
Some of the recent survey’s key finds include:
- Turnover slightly increased to 21.7%, reflecting continued improvement after the 2023 peak.
- Production, maintenance, service, and trades roles experience the highest turnover rate at 28.4%.
- Fastest-growing employer actions: manager training, interview skills training, career/succession planning, development, and communication improvements.
- For 2026, HR leaders prioritize future leader development (64%), training/upskilling (60%), and employee engagement improvements (57%).
- Hiring demand for 2026 remains driven by voluntary and involuntary turnover replacement.
“Turnover may be cooling, but employers can’t afford to lose momentum. The first two years of employment are where retention is won or lost,” said Kate Walker, vice president of Learning and Development at MRA. “Organizations are doubling down on manager development, stronger interviewing, and clearer growth paths because strong leaders build strong workplaces. In today’s environment, investing in people isn’t optional; it’s a competitive advantage.”
Demand for recruitment
According to the survey, despite this progress, employers nationwide face ongoing challenges with early tenure retention and skilled trades roles. The survey indicates that most hiring planned for 2026 will be driven by turnover replacement, with 87% of projected hiring tied to voluntary separations and 74% to involuntary separations — a sign that employers remain focused on improving recruiting quality and reducing avoidable turnover.
Across industries and regions, 65% of all employee separations occur within the first one to two years of service, signaling that early-career retention is a major national pressure point. Employers are responding by prioritizing leader capability, onboarding quality, and clearer development pathways to strengthen retention where it matters most.
In response to these trends, organizations are significantly increasing investment in their managers and people development strategies for 2026.
The survey also shows notable year-over-year increases in:
- Manager training (+15 points to 54%)
- Training managers to interview more effectively (+12 points to 38%)
- Career and succession planning (+12 points to 41%)
- Employee development initiatives (+8 points)
For more than 120 years, MRA has focused on delivering best-in-class HR services customized to meet the needs of businesses ranging from small- to medium-sized organizations to global corporations. To learn more about MRA, visit www.mranet.org.
