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Hiring is hard. Losing good people is even harder.
Here’s the truth most companies don’t want to admit: if you’re spending more time recruiting than retaining, you’re losing money.
In 2025, with budgets tight and skilled talent scarce, recruiting your way out of a turnover problem isn’t sustainable.
Replacing an employee now costs anywhere from 50% to 200% of their annual salary, depending on role and seniority. (HR Morning) And that’s before factoring in productivity loss, team disruption, and the impact on culture.
Retention isn’t the “soft side” of HR anymore—it’s a strategic advantage. Companies that get this right are winning. Those that don’t are running on a very expensive treadmill.
Why the Retention Crisis Is Getting Worse
1. Hiring Costs Are Rising
Between employer branding, recruiting fees, and extended time-to-fill, the price of hiring in 2025 is higher than ever. According to LinkedIn’s Future of Recruiting report, average hiring time has increased by 22% over the past year.
Every delay equals lost productivity—and often, lost candidates.
2. The Market Has Shifted
Top performers have options. Hybrid and flexible work are no longer perks—they’re expectations. A rigid culture or slow decision-making process sends talent running.
3. Burnout Is the Silent Turnover Driver
Employees aren’t leaving just for money—they’re leaving for sanity. Companies that ignore workload, recognition, and work-life balance are bleeding talent in slow motion.
MomUp perspective:
We see this constantly. Companies that build a strong, inclusive, flexible culture don’t just attract talent—they keep it. Flexibility isn’t about hours. It’s about trust.
The Real Cost of Turnover
Let’s put some numbers behind it.
- Entry-level role: 30%–50% of salary to replace.
- Mid-level: 100%–150%.
- Senior/Leadership: Up to 400%. (Work Institute 2025 Retention Report)
Add the ripple effects:
- Decline in morale among remaining staff
- Training time for replacements
- Lost institutional knowledge
- Impact on client relationships
Retention isn’t just about keeping people. It’s about preserving momentum.
Why Recruiting Alone Doesn’t Fix the Problem
Recruiting gets attention because it feels active. You can post, interview, hire. But if your underlying culture isn’t working, you’re filling a leaky bucket.
Here’s what happens when companies focus only on recruiting:
- Reactive hiring. Positions sit vacant until urgency pushes poor fits.
- Team fatigue. Constant onboarding drains your existing staff.
- Higher costs. Each new search adds agency fees, ads, and management time.
- Culture erosion. High turnover breeds disengagement and distrust.
Recruiting feels like growth. But if your retention rate is sliding, you’re not growing—you’re replacing.
What Smart Companies Are Doing Instead
1. Making Retention a KPI
If your leadership team tracks time-to-fill but not time-to-stay, you’re missing the point.
Set retention goals for key roles, measure turnover by segment (parents, women in leadership, new hires), and act on the insights.
2. Investing in Career Development
Employees stay where they see a path forward.
Offer learning stipends, mentorship programs, and cross-department mobility. When you invest in their growth, they invest in your mission.
3. Designing for Flexibility
Flexibility is the #1 factor driving retention for working parents and caregivers.
It’s not about remote vs. office—it’s about choice. Define clear outcomes, not arbitrary seat time.
4. Training Managers to Lead, Not Manage
A recent Gallup report found that 70% of engagement is driven by the manager relationship. (Gallup)
Yet many managers never receive leadership training. The fix? Teach empathy, feedback, and clarity.
5. Building Community and Recognition
People don’t leave companies—they leave invisibility.
Small moments of recognition, consistent communication, and connection to purpose have measurable ROI.
The Retention Advantage for Companies That Hire Through MomUp
When companies partner with MomUp, they’re not just hiring—they’re building sustainable teams.
Here’s what our clients are doing differently:
- Hiring for fit and flexibility. We match based on culture and career-stage alignment, not just skills.
- Integrating returners. Women re-entering the workforce bring loyalty, perspective, and drive—and they stay longer when supported.
- Creating feedback loops. Our client partners get insights on engagement, retention, and post-placement success, not just résumés.
Retention isn’t a side benefit. It’s the entire point of hiring right.
The Business Case: Retention Is Your Hidden ROI
Let’s break it down:
- A company retaining just 5% more employees can increase profits by up to 25%, according to Bain & Company.
- Strong retention boosts employer brand, accelerates recruiting, and creates internal advocates.
- Lower turnover translates directly to stability—especially when building inclusive, flexible teams.
So yes, recruiting matters. But retention wins the long game.
The MomUp Take
Recruiting is exciting. Retention is quiet.
But quiet strength is where your real success comes from.
At MomUp, we help you hire smarter and keep your people longer—through culture-fit placements, flexible structures, and data-driven retention strategies.
Because in 2025, the companies that keep their best people aren’t just saving money—they’re building the future.
