As leaders finalize 2027 budgets, most have a clear idea of how many people they plan to hire. But how many of those openings will support growth, and how many will simply replace employees who leave?
When the same positions keep reopening, additional recruiting activity may provide short-term relief while the underlying issue continues. A manager stretched too thin to support new hires, an employee who sees no opportunity to advance, or a role that differs from what was advertised can all contribute to the cycle.
Before committing to another hiring plan, employers have an opportunity to learn from 2026 and build employee retention strategies around what their businesses will need next.
The challenge is widespread. SHRM’s 2026 Talent Trends research found that 42% of HR professionals had difficulty retaining full-time employees, while 68% struggled to recruit them. The U.S. Bureau of Labor Statistics reported 7.1 million job openings and 3.1 million quits in August 2026.
Recruiting and retention have to be considered together. An organization may be retaining more employees, but that does not necessarily mean those employees are engaged, developing, or prepared for the business’s next needs.
Can Your Current Workforce Support Your 2027 Business Goals?
A workforce plan should begin with the business plan. If an organization expects to add a production shift, expand into another market, or increase service capacity, leaders need to know which skills and experienced employees are essential to achieving those goals.
Consider the consequences if two experienced supervisors left during a planned expansion. Replacing their headcount might be possible, but rebuilding their institutional knowledge and getting new leaders up to speed could delay the work those growth plans depend on.
Turnover also creates costs that rarely appear as a single line in a budget, such as recruiting time and lost productivity. Incipio’s Cost of Turnover Worksheet can help leaders give those expenses more attention during planning.
What Do Your 2026 Turnover Patterns Reveal?
A companywide turnover percentage is a starting point, but it rarely tells the whole story. Two organizations with similar rates may face very different risks if one is losing new employees during onboarding while the other is losing experienced leaders.
Review turnover by role, department, location, manager, and length of service. Pay particular attention to regrettable turnover: departures of high performers or employees whose skills would be difficult to replace. Then compare the data with what employees have shared in exit and stay interviews, as well as in regular conversations.
Year-End Workforce Retention Checklist
Before approving the 2027 hiring budget, ask:
- Which positions did we refill more than once in 2026?
- Why did employees leave, and which departures might have been prevented?
- Where is turnover concentrated, and what do those teams have in common?
- Which employees or skills would be hardest to replace next year?
- Do people see a realistic path to grow within our organization?
The goal is to identify patterns that leadership can act on, rather than assume every departure calls for a replacement hire.
How Do Managers Affect Employee Retention?
Employees experience company culture through everyday interactions with their managers. Clear expectations and reasonable workloads can strengthen their confidence in the organization. Inconsistent direction or limited support can gradually erode it.
If one department repeatedly loses new hires while another retains people in similar roles, look closely at differences in onboarding, communication, scheduling, and supervision. Those observations may reveal a more useful intervention than increasing the recruiting budget.
Managers also need support. Training and accountability for developing team members should be part of the retention discussion. Incipio’s Workforce Alignment solutions help organizations examine team dynamics, leadership communication, and performance expectations to address gaps that affect engagement and retention.
Does the Employee Experience Match What You Promise Candidates?
An employer brand sets expectations before someone accepts a job. Employees then decide whether those expectations match the work they experience: the schedule, opportunities for development, leadership support, and day-to-day demands.
When reality differs, a business can end up replacing people who were excited to join only months earlier. That makes retention an important part of employer branding, not just a concern after someone resigns.
Gartner’s 2026 future-of-work research describes “regrettable retention,” in which disengaged employees remain in their roles. A lower resignation rate, by itself, does not prove a healthy workplace.
Employers should compare recruiting messages with employee feedback and review whether onboarding, policies, and employee relations practices support the experience promised. Incipio’s HR services can help identify weaknesses in those day-to-day processes.
Before Recruiting Externally, Look at the Talent Already Inside
Some of the skills needed in 2027 may already exist within the organization. SHRM’s 2026 research found that 41% of HR professionals train existing employees for hard-to-fill positions, highlighting an option businesses can consider alongside external recruiting.
Review upcoming skills requirements against the capabilities of current employees. Could a strong frontline employee become a shift lead with the right coaching? Are there experienced team members who could mentor newer hires? Does a high performer know what advancement could look like over the next year?
Internal development will not eliminate the need to hire. It can, however, make applicant recruiting more targeted toward the gaps that truly require outside talent.
How Do You Build an Employee Retention Strategy for 2027?
Start with a clear baseline, then connect each retention priority to a business outcome. A manufacturer preparing to expand might focus on turnover during the first 90 days and readiness among shift supervisors. A growing services organization might prioritize succession plans for client-facing leaders.
Choose a manageable number of issues to address first. Give leaders ownership, establish measures such as early-tenure turnover, regrettable departures, internal promotions, and employee feedback, and review progress throughout 2027. A strategy is more useful when leaders can see whether the changes are working.
For a closer look at why recurring vacancies require a broader perspective, read Incipio’s article on the difference between a staffing agency and a workforce partner. You can also explore its manufacturing workforce case study for an example of how recruiting and retention support is applied in practice.
Know Where Your Workforce Stands Before 2027
The best time to address a recurring workforce problem is before it becomes another urgent vacancy. Incipio’s Workforce Stability Scorecard offers a starting point for examining strain in your organization and identifying where stronger alignment may be needed.
If your 2026 turnover patterns raise questions about next year’s readiness, schedule a Workforce Strategy Conversation with Incipio. The right 2027 hiring plan begins with understanding the people you have today.