A survey, Q1 2025 State of the Frontline Worker report by goHappy, which received responses from 46,250 frontline workers across the US and Canada, found a direct correlation between employee engagement and business performance. The report reveals that businesses with highly engaged frontline employees experience a turnover rate that is significantly lower than the overall average across all industries.
“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,” said Shawn Boyer, Founder and CEO of goHappy, in a statement. “Our State of the Frontline Worker report quantitatively confirms that employee engagement isn’t just a nice-to-have, it’s a business necessity.”
The Society for Human Resource Management (SHRM) estimates the cost of hiring a new employee to be $4,700, a financial impact that scales dramatically when considering a business’s annual turnover.
The survey data shows that organizations that prioritize employee engagement are seeing transformational results that could reducing hiring costs. Employers with engagement scores exceeding 75% saw a 12-month rolling turnover rate of just 85%, a 14% improvement compared to the 99% turnover rate observed across all customers.
Other key findings from the report include:
- The Cost of Disengagement: Only 64% of frontline workers report being engaged, contributing to a staggering 99% turnover rate.
- Food Service Faces Unique Challenges: Just 59% of food service workers believe their managers lead by example, compared to 72% in other industries.
- Leadership Matters: While frontline leaders shape the employee experience, only 63% of employees believe their manager leads by example and creates a trusting workplace.
