2026 Employee Retention Trends Affecting Your Workforce

Talent attraction and retention remain major topics of discussion in the American workforce. Various surveys report that 75-81% of companies struggle to hire talent, which means retaining the current workforce is more important than ever.

Struggles with hiring are also felt in York County. Many employers contact the York County Development Corporation (YCDC) to ask for assistance in finding team members as the regional workforce shifts.  

“At YCDC, we work year-round to strengthen the talent pipeline—through career awareness, employer storytelling, and community-wide talent attraction,” says Lisa Hurley, Executive Director of YCDC. “But long-term retention happens when communities and employers work together. When local companies invest in culture, growth, and connection, it reinforces York County as a place where people choose to build their careers and their lives.”

Commit to talent attraction and retention this year. The research below reflects trends at the national and local levels. See how investing in your workforce can support your talent goals and make your organization a leader in York County and beyond.  

51% of Employees Are Open to Leaving Their Jobs 

According to a November 2025 Gallup survey, half of employees are watching for or actively seeking a new job. However, only 28% of employees feel that now is a good time to find a job, the lowest level since 2013. Confidence when entering the job market has plummeted over the past few years, after peaking at 70% in June 2022.

This data is relevant because it shows that employees want to leave, even though they aren’t confident they can easily find work right now. This could lead to a rise in quiet quitting, where employees disengage and do only the bare minimum, focusing their efforts on finding work elsewhere – or becoming frustrated if they can’t find another job. 

The Quit Rate is Also on the Decline

The Quit Rate is a national economic indicator that measures the number of people who voluntarily leave their jobs (as opposed to leaving due to layoffs or termination). When the Quit Rate is high, Americans feel confident in their ability to find work in the open market. When it is low, confidence in finding a job is low.

The Quit Rate has also been dropping since 2022, reflecting the trends in Gallup’s survey. This means employees who are disengaged are more likely to stay put in their roles.  

A lack of turnover among unhappy employees will hurt companies in the long run. It is better for disengaged employees to leave so that excited ones can fill their roles, bringing fresh ideas and energy. The reduced productivity from disengaged employees will outweigh the short-term pain of a vacancy in the long run. 

Younger Workers Seek Employers Who Invest in Them

Money and work-life balance are key drivers of employment, but Deloitte found that younger employees (Millennials and Gen Z) ranked learning and development as the third-most important factor when choosing an employer. A survey of 23,482 workers from those generations found 70% of Gen Z and 59% of Millennials seek opportunities to advance their skills at least once a week. Furthermore, 67% of Gen Z workers invest in professional development outside of work.

Combined, the cohort of Millennials and Gen Z workers represents employees born between 1983 and 2006 – a 43-year range. These two generations make up an increasingly large percentage of the modern workplace.  

Employees want to work for companies that invest in them. This means employers that focus on developing employees can reduce turnover while also attracting more and better candidates. 

42% of Americans Are Interested in Upskilling

According to the McKinsey American Opportunity Survey, Americans changed occupations three times more than Europeans in recent years. As a whole, the American workforce is willing to shift careers if better opportunities become available. Furthermore, 42% of workers are interested in growing their skills or actively seeking new skills, especially if it means stepping into new roles.

Individuals face multiple barriers to upskilling. McKinsey found that the time commitment and the cost of education were the two biggest factors preventing people from developing their own skills. They highlight the role that companies play in developing workers. If companies want employees with specific skills, they need to make it possible for those workers to develop them.

This data is good news: companies could have full control over what employees learn and how they are trained. A company willing to invest in its workers can attract talent more easily and ensure that new hires' skills align with the operation's needs. 

Companies That Invest in Development Retain More Employees 

There is a direct business case for investing in learning and development within your organization. LinkedIn found that companies with a strong learning culture reported a 57% retention rate, compared to 27% for companies that only had a moderate learning culture. When employees were surveyed, 70% said learning increases their sense of connection to an organization.

The LinkedIn report also found that employees were more likely to spend time developing their skills when they were directly tied to career goals. Learning a mass-developed curriculum was less valuable than identifying specific skills for each employee. This means companies should consider every employee's future and how developing their skills can make them more effective in their careers.  

Employees Recommend Companies That Invest in Them

Not only can investing in employees support retention, but it can also help with attraction. Happy employees tell their colleagues about their employers and want to bring them in. In a survey for Fortune World’s Best Workplaces™ List, researchers found that companies can build better workplaces by involving employees in decisions that affect them, having engaged managers, and connecting employees to meaningful work. Investing in employees makes them significantly more likely to recommend their workplaces to others.

Investing in employees will have tangible costs. Some employees will not be able to afford extra training on their own and will become frustrated if their company expects them to pay for it. Use this checklist to determine when your organization should cover the cost of training and treat the employee like they are on the clock while in the learning environment:

• The conference or training session is required. 
• There is an employer-paid workshop related to the employee’s role.
• The training improves performance in the employee’s current job.
• The employee represents the organization at a conference or trade show. 
• There are required webinars, even if outside traditional work hours.

That said, employers and employees can work together to determine what training opportunities are fair. While it’s reasonable for an employer to cover the costs of attending a conference to help a worker learn new skills, both parties can identify relevant conferences based on location, cost, and relevance.  

Development Will Drive Attraction and Retention in 2026

Employers want to manage an engaged and skilled workforce, but employees don’t feel their companies are invested in them. Economic uncertainty can prevent people from quitting, but it won’t stop them from disengaging and doing the bare minimum.

In 2026, development is key to retaining employees and hiring new ones. The data above shows that employees want clear career paths and will actively seek opportunities to learn. They need employers to invest in their training if they are going to succeed, because the cost and time commitments are too high.

Employers can’t have their cake and eat it, too. They can’t ask for skilled, loyal employees without creating opportunities for team members to grow. Failing to invest in development can cause people to leave, while making it harder to find prospective candidates.

Consider how your company is investing in training and employee education in 2026. Development does more than increase productivity; it also supports retention in the long run. 

YCDC Can Assist With Workforce Development

YCDC offers several programs to help companies invest in their employees. Businesses can sponsor team members who participate in the 17-County Leadership Program, attend a Lunch & Learn, or enroll them (or yourself) in the Dale Carnegie Training.

If you aren’t sure where to start with workforce development, contact our team at YCDC. We can help you develop a path to invest in your staff.