Turnover Rate Benchmarks by Industry 2026
Average turnover rates vary dramatically by industry. Comparing your rate against industry benchmarks tells you whether you have a retention problem worth addressing or whether you are already outperforming your peers.
Turnover Rates by Industry
| Industry | Average Turnover | Top Quartile | Cost per Departure |
|---|---|---|---|
Retail Low wages, seasonal hiring, part-time workforce, limited career paths | 55-65% | Under 30% | ~0.5x salary per departure (lower salary base) |
Hospitality and Food Service Seasonal demand, unsociable hours, tip dependency, physically demanding work | 70-80% | Under 40% | ~0.4x salary per departure |
Technology and Software High demand for talent, above-market competing offers, equity vesting cycles | 13-18% | Under 8% | ~1.5-2x salary per departure |
Financial Services and Banking Bonus cycles driving departure peaks, regulatory compliance burden, work intensity | 16-20% | Under 10% | ~1.5-2.5x salary per departure |
Healthcare Burnout, overtime, staff-to-patient ratios, demand exceeding supply for clinical staff | 18-25% | Under 12% | ~1x-1.5x salary per departure (plus patient care impact) |
Professional Services Up-or-out culture, client service intensity, better offers from clients directly | 15-20% | Under 10% | ~1.5x salary per departure |
Manufacturing Physical demands, shift work, limited advancement, competitive hourly labour market | 20-30% | Under 12% | ~0.5x-0.8x salary per departure |
Government and Public Sector Job security drives low voluntary turnover; retirements are planned attrition | 8-12% | Under 6% | ~1x salary per departure (training costs high, hiring slow) |
Education Pay compression, limited advancement, burnout in K-12, academic year disruption | 14-18% | Under 8% | ~0.6x-1x salary per departure |
E-commerce and Consumer Internet Growth-stage churn, equity lotteries, startup-to-startup movement | 20-30% | Under 15% | ~1x-1.5x salary per departure |
Departure Risk by Tenure
Under 1 year
HighestEarly-stage culture mismatch, hiring process misalignment
1 to 2 years
HighCliff vest trigger, compensation reality vs expectation gap
2 to 4 years
ModerateCareer progression stall, growth opportunity outside
4 to 7 years
LowEstablished relationships, meaningful equity, seniority
Over 7 years
Very Low (planned)Retirement planning, strategic change, restructuring
How to Use These Benchmarks
- Calculate your own annualised voluntary turnover rate (voluntary departures / average headcount x 100).
- Compare against your specific industry average, not a cross-industry average.
- If you are above the industry average, a retention problem exists and quantifying the cost is the first step.
- If you are at or below top-quartile, focus investment on early-tenure attrition (under 2 years) where the most value is typically at stake.
- Track voluntary vs. involuntary turnover separately. Involuntary turnover (dismissals) has different cost drivers.
- High-performer turnover is more damaging than average-performer turnover even at the same rate. Track separately if possible.