In 2025, retaining employees has become the main focus of permanent recruitment. According to the Work Institute’s 2025 Retention Report, about 63% of employee exits in 2024 could have been avoided. Why do people leave? Often, it is because of poor management, no career growth, or weak work-life balance. Hiring new people again and again is expensive. Replacing an employee can cost up to 200% of their yearly salary. That’s why retention is not just about people, it’s also about saving money.
Moreover, employee needs have also changed. Today, workers care about career growth, flexibility, and well-being just as much as pay. They want clear opportunities and a healthy work-life balance. If they don’t get these, they leave, and companies end up restarting the hiring process, wasting time and resources.
Because of this, retention is now a key part of permanent hiring.This blog will explain why retention matters so much today, how high turnover affects business costs, and why employers should focus on long-term strategies instead of quick fixes. It will also show how Fortray helps employers improve retention through culture-fit hiring, ongoing engagement, and post-hire support.
Why Retention Now Matters More Than Ever
If we take a look at 2025, retention has officially taken centre stage, not just in HR meetings but in boardrooms too. The numbers tell a story that no business can afford to ignore. The Work Institute’s 2025 Retention Report reveals that a striking 63% of employee exits last year were preventable. That means most people didn’t leave for better salaries; they left because a few important things, like career growth, purpose, or balance, were missing. Every resignation now carries a heavy price tag. Replacing an employee can cost up to 200% of their annual salary and months of lost productivity.
When a skilled employee walks out, they take with them knowledge, client trust, and team momentum. As per stats, around 40% of new hires quit within their first year, which shows that hiring alone doesn’t build stability. That’s why retention has evolved from a support function into a strategic pillar of permanent recruitment.
Why Employers Must Move from Reactive to Strategic Retention
For a long time, companies only thought about retention after employees quit. They tried fixing the problem with exit interviews or team activities, but by then, it was too late. But today, this approach doesn’t work. Employees have more options and higher expectations than ever before.
Reports show that most people leave jobs because of poor management, no career growth, or lack of flexibility. Yet, many companies still spend more money hiring new people instead of keeping the ones they already have. This leads to high costs and lower productivity.
The only solution to this problem is strategic retention. It means acting before employees decide to leave. It’s about knowing what motivates them, spotting early warning signs, and creating a workplace they enjoy. Companies that make retention part of their recruitment strategy build stronger teams, better performance, and a trusted brand. When employers stop reacting to resignations and start preventing them, retention becomes their biggest strength.
Recommended Reading: From Panic Hiring to Strategic Recruitment: IT Hiring Reimagined
The Gap: High Attrition, High Cost, and Low Productivity
Even though many companies spend a lot on hiring, they still struggle to keep good employees. This gap between hiring and retention has become costly. When skilled people leave, work slows down, team spirit drops, and clients notice the difference. Replacing one employee can cost up to 200% of their yearly salary, which eats up money that could be used for growth or innovation.
The biggest loss, however, is productivity. Every time someone leaves, managers have to start the hiring process again, train new people, and deal with low team morale. Frequent employee turnover also makes it hard for new hires to connect with the company culture, leading to shorter job tenures and lower engagement. In short, high attrition creates a never-ending cycle of hiring and training and that’s where most companies lose both time and money.
How Fortray Fills That Gap
Fortray understands that retention doesn’t begin after hiring. In fact, it starts with hiring the right people. Our focus is completely on culture-fit assessments, which ensure that every candidate aligns with the company’s values and long-term goals. This helps employers build teams that not only perform well but also stay committed.
Moreover, we also prioritise continuous engagement throughout. From candidate experience to post-placement follow-ups, our consultants maintain open communication to ensure smooth onboarding and satisfaction on both sides. This proactive engagement reduces early attrition and strengthens the bond between employer and employee.
However, through post-hire support, we help employers monitor new hire performance, address early-stage challenges, and gather insights to improve retention strategies over time. In a nutshell, Fortray bridges the gap between hiring and retention by combining smart recruitment practices with human understanding.
