The Retention Paradox: A Key Workplace Mental Health Trend for 2025
Retention metrics don’t tell the whole story. Discover how stagnant retention impacts employee mental health and organizational success—and what leaders can do to foster engagement and purpose in 2025.
Retention has long been seen as a hallmark of workplace success. Companies that keep their talent enjoy the benefits of loyalty, institutional knowledge, and reduced hiring costs—or so the story goes. But today’s workplace tells a more complicated tale. As we look to 2025, it’s clear that retention on its own is no longer enough to ensure organizational success.
Enter The Retention Paradox: a growing phenomenon where employees stay in their roles, but not for the right reasons. They’re not thriving—they’re stuck. And it’s costing businesses dearly.
The Hidden Costs of Disengagement
Retention metrics can paint a misleading picture. Voluntary job exits among higher-paying employees have dropped to their lowest levels since 2020, but many of those staying behind feel disengaged, dissatisfied, and disconnected from their work.
The consequences for organizations are stark:
- Lost Productivity: Gallup estimates that disengaged employees cost the global economy $8.8 trillion annually in lost productivity.
- Increased Turnover Risks: When employees feel stuck, dissatisfaction festers, making them far more likely to leave when the opportunity arises.
- Burnout and Well-Being Declines: Stagnation can lead to stress, disengagement, and burnout, further reducing productivity and morale.
Turning Stagnation into Engagement
The solution lies in shifting focus from retention metrics alone to fostering purposeful retention. Organizations that address the root causes of disengagement—by embedding mental health support, meaningful career development, and a sense of purpose—can create a thriving, engaged workforce.
Key strategies include:
- Investing in Mental Health: Employees who feel supported are more engaged, productive, and loyal. Mental health benefits are an investment that drives business results, including 18% higher productivity and 43% lower turnover.
- Redefining Retention Metrics: Instead of simply measuring who stays, ask why employees stay. Are they motivated, or do they feel they have no other choice?
- Designing for Purpose: Foster environments where employees see how their work contributes to organizational goals. Purpose drives engagement and satisfaction.
Why This Matters in 2025
The Retention Paradox is a wake-up call for leaders. It’s not just about holding onto employees—it’s about creating conditions where employees want to stay and can thrive.
This is just the first trend in our 2025 Workplace Mental Health Trends series, which will explore emerging insights shaping the future of work. From empathetic leadership to leveraging AI responsibly, we’ll dive into actionable strategies to help organizations navigate a rapidly changing workplace.
Stay tuned for more insights, and in the meantime, consider how your organization can tackle The Retention Paradox today.
Modern Health
Modern Health is the comprehensive mental wellness platform that combines the WHO well-being assessment, self-service wellness kits, an international network of certified coaches, and licensed therapists available in 35 languages all in a single app. Modern Health empowers employers to lead the charge in acknowledging that mental health is just as important as physical health, de-stigmatizing the conversation, and increasing accessibility of mental health services for all.
