Businesses with highly engaged frontline workers see less turnover than others, and that leads to quantifiable savings for employers, according to the results of a new report based on a large survey.
The Q1 2025 State of the Frontline Worker report, released Tuesday by goHappy, is based on responses from 46,250 frontline workers across the United States and Canada.
“When frontline workers feel valued, connected and supported, they not only help businesses combat high turnover rates; they’re also more productive and drive stronger customer satisfaction and workplace culture,” stated Shawn Boyer, founder and CEO of goHappy. The report, he added, “quantitatively confirms that employee engagement isn’t just a nice-to-have; it’s a business necessity.”
The opposite also is true. Disengagement corresponds to high turnover. According to the survey, 64% of participants said they felt engaged on the job last year, which contributed to a 99% turnover rate on a rolling 12-month basis, according to the report. But employers with engagement scores of more than 75% saw 85% turnover on a rolling 12-month rolling basis, and that 14% reduction represents savings for employers.
“Organizations that prioritize employee engagement are seeing transformational results, with lower turnover, higher productivity and fewer missed shifts,” goHappy noted.
SHRM (formerly the Society for Human Resource Management) estimates that it costs approximately $4,700 to bring a new employee on board, according to goHappy. For a company with 500 employees, 14% lower turnover equals a savings of $329,000 in a year. For a company with 4,000 employees, that annual savings skyrockets to $2.6 million.
Best practices for employers to engage workers, according to the report, are to lead by example, foster open communication, recognize employees’ efforts and achievements, and provide opportunities for skills development and career progression.
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