U.S. Employers See Turnover Hold Steady as Early Tenure and Skilled Trades Challenges Persist
New data shows turnover rates at 21.7%, while 65% of separations occur within the first two years of employment.
February 16, 2026 — MRA – The Management Association released new findings from its 2026 Turnover Survey, revealing that overall turnover slightly increased to 21.7%, reflecting continued improvement after the 2023 peak. Despite this progress, employers nationwide face ongoing challenges with early tenure retention and skilled trades roles, where turnover remains the highest at 28.4% of employees.
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 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)
- Stronger internal communication and stay interview efforts
These priorities mirror broader HR trends for 2026, where leaders report plans to increase training for managerial and professional staff (64%), improve onboarding processes (54%), and conduct engagement surveys (36%) to support long-term workforce health.
“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 & Development at MRA. “Organizations are doubling down on manger 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.”
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.
Key Findings at a Glance:
- Turnover slightly increased to 21.7%, reflecting continued improvement after the 2023 peak.
- Production, maintenance, service, and trades roles experience the highest turnover at 28.4%.
- 65% of all separations occur at 1–2 years of service.
- Fastest-growing employer actions: manager training, interview skills training, career/succession planning, development, and communication improvements.
- HR leaders prioritize future leader development (64%), training/upskilling (60%), and employee engagement improvements (57%) for 2026.
- Hiring demand for 2026 remains driven by voluntary and involuntary turnover replacement.
For more information or to request a full summary of the findings, please contact:
Lesley Weiss
Marketing Director
[email protected]
262.696.3334
