Retention Rates by Role: Trends Across North America

Retention rates can differ significantly across job titles, industries, and regions. Both Canada and the U.S. have unique challenges, but certain common trends highlight areas of concern.

In Canada, turnover rates are typically lower than in the U.S., with 11.9% being the average annual turnover rate as reported by Mercer’s 2024 Canadian Workforce Trends report. However, industries like retail, hospitality, and construction often see much higher turnover rates. For example, retail has one of the highest turnover rates in both countries, often exceeding 25% annually. This indicates the volatility and seasonal nature of these sectors.

In the U.S., the Bureau of Labor Statistics (BLS) reported a 60.3% annual employee turnover rate in the hospitality sector alone as of 2024. In contrast, industries such as technology and finance tend to have lower turnover rates, ranging from 10% to 15% annually. This suggests that high-stress roles or those requiring specialized skills tend to retain talent more effectively, but also face unique challenges in recruitment and retention.

Technology and IT Roles :

The demand for skilled professionals in technology, particularly in fields like cybersecurity, cloud computing, and AI, has driven job retention higher. According to a LinkedIn Workforce Survey, the tech sector in both Canada and the U.S. saw a 6.7% increase in retention over the past year, as organizations made more effort to offer development opportunities and foster inclusive cultures. However, the competitive nature of the industry means companies must be proactive in offering competitive compensation, flexible work arrangements, and career growth paths to keep top talent.

For example, a cybersecurity engineer in the U.S. might be more likely to stay with a company that invests in training programs, provides opportunities to work on cutting-edge projects, and offers remote work options, all of which boost job satisfaction and reduce the desire to seek new opportunities.

Healthcare :

In the healthcare sector, retention challenges are more pronounced, especially for frontline workers like nurses and health technicians. According to Statistics Canada, the healthcare industry faces a turnover rate of 18.3% annually, with hospitals and long-term care facilities experiencing even higher rates due to the physical and emotional toll of the job. On the U.S. side, the American Hospital Association reports that the nursing shortage is exacerbated by high turnover rates, driven by burnout, lack of work-life balance, and limited career advancement opportunities. As such, addressing retention in healthcare requires a holistic approach that includes improving workplace culture and providing emotional support for staff.

Video Game Industry :

The video game industry has a unique set of challenges when it comes to retention. Developers, designers, and engineers are in high demand, but the competitive landscape, long working hours (often referred to as “crunch time”), and job instability can all contribute to higher turnover rates. In fact, according to the International Game Developers Association (IGDA) Developer Satisfaction Survey, 47% of game developers reported feeling burnt out due to poor work-life balance, leading to an alarming turnover rate in the sector.

The U.S. video game industry is worth billions, but the labor force faces significant strain. The Entertainment Software Association (ESA) notes that game companies can struggle to keep employees because of project-based work, lack of clear career progression, and a highly competitive job market. In Canada, companies like BioWare (famous for titles like Mass Effect and Dragon Age) face the same pressures, and as a result, there have been increasing efforts to improve employee wellness and job security.

Example: To address these concerns, companies such as Naughty Dog (famous for titles like The Last of Us) have taken steps to improve their internal culture by limiting crunch time, offering flexible work schedules, and investing in employee wellness programs. Companies that can provide an environment where work-life balance is prioritized are more likely to retain employees in a highly competitive industry.

A critical factor in retention is the onboarding process. The way a new employee is introduced to an organization can have a lasting impact on their commitment to the role and company.

Effective Onboarding Strategies

Comprehensive Onboarding Programs :

According to Glassdoor, companies with strong onboarding programs experience 50% higher retention rates. In Canada, companies like Telus have set a benchmark for comprehensive onboarding by offering detailed training sessions, mentorship, and clear communication regarding company values and expectations. For tech companies in the U.S., Google and Facebook excel at creating onboarding programs that integrate new hires into the company culture, making them feel part of something larger from day one.

A structured onboarding program that extends beyond administrative tasks and includes regular check-ins with managers, detailed role-specific training, and introductions to key colleagues fosters a strong sense of belonging and purpose.

Personalized Onboarding :

Every department and role require a slightly different approach. For example, while a sales associate might need a quick introduction to store processes, a software engineer will require more technical training. Tailoring onboarding to the specific needs of each role and the employee’s background ensures a more engaging and effective experience, which is crucial for retention.

In Canada, Suncor Energy has successfully employed a personalized onboarding approach by customizing its onboarding program for each new hire’s role. This strategy has contributed to its success in retaining talent in the competitive energy sector.

Once an employee has been onboarded, the next critical step is ensuring continued engagement throughout their tenure with the company. Engaged employees are more likely to stay and contribute to the organization’s success.

Strategies to Boost Engagement

Career Development :

A key driver of engagement is the ability to grow and advance within the company. In technology and finance, career progression is particularly important. Providing employees with opportunities to upskill and move into leadership positions is essential for retention. A 2025 Deloitte survey found that 79% of employees value career growth opportunities and are more likely to remain with companies that offer training, mentorship, and clear career advancement paths.

Example: Shopify, a leading e-commerce company based in Ottawa, is known for its strong employee development programs, including mentorship and leadership training. This approach has led to higher employee satisfaction and a relatively low turnover rate compared to other Canadian tech companies.

Work-Life Balance :

Offering flexible work arrangements has become more important than ever, especially post-pandemic. In both Canada and the U.S., employees are prioritizing flexibility, and companies that provide options for remote work or flexible schedules tend to have higher retention rates.

For instance, Microsoft Canada has embraced remote work policies and flexible hours, which has not only enhanced employee satisfaction but also reduced turnover. Similarly, in the U.S., Salesforce has implemented flexible work-from-home policies, leading to a noticeable increase in employee retention in key departments like sales and marketing.

Recognition and Feedback :

Regular recognition and feedback are vital to keeping employees engaged. According to Gallup, employees who receive recognition for their work are 30% more likely to stay with their employer. In both Canadian and U.S. workplaces, a culture of feedback and recognition, whether through formal awards, bonuses, or informal praise, helps employees feel valued and appreciated.

In both Canada and the U.S., retention rates vary significantly by role, industry, and employee expectations. By understanding the root causes of turnover, whether they be related to compensation, career development opportunities, or workplace culture, organizations can implement strategies to address these challenges effectively.

The key to improving retention lies in a combination of effective onboarding, ongoing employee engagement, and a commitment to career development. Companies that invest in these areas are not only more likely to retain their talent but will also foster a more committed, satisfied workforce that drives organizational success.

By leveraging these insights, organizations across North America can better navigate the complex landscape of talent retention and create work environments that attract, engage, and retain top talent.