Employees may be holding on to their jobs with grand determination, but without sufficient care, employers could lose at least $1.3 trillion to attrition in 2026. The Achievers Workforce Institute’s annual Employee Engagement and Retention Report recently took a closer look at the state of work and the undercurrents that are currently passing unseen. Fewer employees see long-term careers with their current employers, and around 34% are hoping to switch jobs next year, despite being certain of the fact that the job hunt could take months to turn up a fruitful alternative.
The report estimates that if such a percentage of full-time workers in the US choose to switch jobs, employee turnover costs in 2026 could rack up somewhere between $1.3 trillion and $5.1 trillion. This is without considering part-time workers or those who change their minds and begin to hunt for work next year. The numbers serve as a reminder that investing in employee benefits and engagement strategies should always be a business priority.
US employers could lose at least $1.3 trillion to attrition in 2026 if employees continue to feel overlooked and disconnected from the workplace. (Image: Pexels)
US Employers Could Face $1.3 Trillion in Attrition Losses in 2026: Workforce Retention Insights
In 2025, the tides have rolled in favor of employers, revealing just how much of the deciding power lies in their hands. With the waves of layoffs, AI investments, RTO policies, increased surveillance strategies, and other similar changes crashing against the stability of the workplace, many employees have found themselves struggling to make it to the surface. With the need for employees reportedly decreasing thanks to AI, many workers remain confused about their careers, feeling a sense of disconnection from the workplace.
The AWI study’s estimate of a possible $1.3 trillion attrition loss shows that, despite being wary of the job market, many employees may still choose to take their talent elsewhere. The report also took a closer look at these workers who felt they were losing control over their careers to find out why. Only 25% of employees report feeling appreciated and engaged at work, while the 75% feel overlooked.
The numbers are slightly better among HR professionals, 34% of whom report feeling appreciated at work, but these numbers are also alarming. A previous report from earlier in the year found that 30% of employers are considering replacing their HR teams with AI, which might be part of the reason for this trend among HR.
Why Employee Appreciation Matters
Employees who feel valued within the workplace are 12 times more likely to see their work as meaningful, and 17 times more likely to see themselves building a long-term career in their industry. Throw weekly recognition from managers into the mix, and employees are 2.8 times more likely to experience a sense of connection to their organization. Not only could employers benefit from investing in direct strategies to engage workers, but they could also choose to reduce attrition by relying on managers to build solid bridges with employees.
The employee engagement data makes it clear that employees stay where they feel valued and appreciated, and there are many methods of appreciation to consider here as well. AWI also found that employees who feel they are paid fairly are 2.5 times more likely to be engaged. The finding isn’t new; many businesses retain talent solely on the basis of the pay packages they offer, but the work doesn’t stop there.
Other forms of monetary and pay benefits can go a long way towards rewarding and retaining employees, giving them clear evidence of their work being appreciated by the organization. From reward marketplaces to clearly customized benefits tailor-made for a workforce, there are many ways to show employees appreciation.
Relying on Connection and Networks to Address the Workforce’s Career Uncertainty
Employees feel a greater sense of connection and belongingness when they have friends in the workplace. AWI found that employees who feel connected to their colleagues are 4.7 times more likely to be engaged, 3 times as likely to envision a long career at their company, and 5.4 times more likely to feel a strong sense of belonging.
Despite having many benefits to offer, remote work has disrupted the bonds that employees previously formed at work. Working distantly from colleagues has also reduced some of the strain that comes with working around difficult, unpleasant coworkers, but the lack of reliable bonds at work is something that businesses should consider addressing.
The U.S. employers’ attrition report serves as a reminder to prioritize engagement in 2026
While employers work with their HR teams to plan out how to comply with changing state and federal regulations, it is also important to take a closer look at the employee experience. Workers who are under constant strain of losing control of their careers are unlikely to feel at ease when they come into work. Constant internal debates over finding a new job or staying where they feel unwelcome leave little room for workers to perform at their best and engage more thoroughly with their work.
“What the data makes clear is that recognition, rewards, and connection remain the most powerful predictors of retention and performance, and managers are the linchpin for all three,” Hannah Yardley, Chief People and Culture Officer at Achievers, said in the report. “The opportunity now is for HR to take a science-backed approach to prioritizing these factors, and for the C-suite to fully embrace the hard ROI behind the seemingly soft drivers of friendship, belonging, and appreciation.”
As startling as the predictions of $1.3 trillion in attrition losses are, the data with regard to disengagement should serve as a greater cause for alarm. While there are a considerable number of responsibilities and duties to prioritize in 2026, taking a closer look at this employee engagement data to create a gameplan for the labor force is a task that cannot be ignored.
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