By Senyo M. ADJABENG
The workplace is evolving at an unprecedented pace, driven by technological advancements, shifting societal values, and economic pressures. As we look ahead in 2025, it’s clear that employee retention will remain a critical challenge for organizations worldwide.
A growing body of research and trends suggests that employees are more likely to leave their jobs in 2025 than in previous years. This article explores the key reasons behind this phenomenon and offers insights into how businesses can adapt to retain top talent.
Rise of the Gig economy and remote work
The gig economy and remote work have redefined how people view employment. By 2025, the gig economy is expected to grow even further, with platforms like Upwork, Fiverr, and others enabling workers to take control of their careers.
Employees are no longer tied to traditional 9-to-5 jobs and are increasingly seeking flexibility, autonomy, and diverse income streams. According to a report by McKinsey & Company (2022), 36% of employed respondents in the U.S. identified as independent workers, and this number is expected to rise. Remote work, which became mainstream during the COVID-19 pandemic, has also shifted employee expectations.
Workers now prioritize jobs that offer location independence, and companies that fail to provide this flexibility risk losing talent to competitors that do. While the gig economy is growing, overtaking regular employment in Africa is unlikely in the near future. However, it could become a significant complement to traditional jobs. Here’s why.
Africa’s economy is heavily reliant on the informal sector, which accounts for 85% of employment, according to the International Labour Organization (ILO). Many gig jobs fall under the informal sector, meaning they lack the stability, benefits, and protections of formal employment. For the gig economy to overtake regular jobs, it would need to formalize and provide similar security, which is a significant challenge.
While the gig economy may not overtake regular employment, it has the potential to transform Africa’s labor market in several ways. For one, it can create millions of jobs, particularly for young people and women. For example, ride-hailing platforms like Uber and Bolt have employed thousands of drivers across Africa, while freelance platforms like Fiverr and Upwork enable Africans to access global opportunities.
The gig economy can provide income opportunities for marginalized groups, such as women and rural populations, who may face barriers to traditional employment. For instance, platforms like Jumia allow small-scale farmers and artisans to sell their products online. Gig work can also help workers develop valuable skills, such as digital literacy, customer service, and time management, which can enhance their employability in the long term.
The gig economy is unlikely to overtake regular employment in Africa, but it will play an increasingly important role in the continent’s labor market. By 2030, the gig economy could account for a significant share of employment, particularly in urban areas and among young people. These are reasons why employees in 2025 may find gig work as the flexible option they can pursue and proceed to leave their regular jobs.
Burnout and mental health concerns
Mental health is another key factor that may drive employees away from workplaces in 2025. Employee burnout has reached alarming levels in recent years, and this trend shows no signs of slowing down.
A 2023 study by Deloitte found that 77% of employees have experienced burnout at their current job, with many citing excessive workloads, lack of work-life balance, and insufficient support from employers as key contributors. In 2025, mental health will be a top priority for employees.
Those who feel overworked and undervalued are likely to seek employers that prioritize well-being, offer mental health resources, and foster a supportive work environment. And Companies that ignore these needs will face higher turnover rates.
Mental health is a critical yet often overlooked aspect of public health in Africa, including Ghana. Despite growing awareness, mental health issues remain stigmatized, underfunded, and poorly integrated into healthcare systems.
Depression and anxiety for example are among the most common mental health disorders in Africa. In Ghana, studies indicate that approximately 13% of the population suffers from depression, while anxiety disorders are also widespread. Economic hardships, unemployment, and social inequalities exacerbate these conditions, particularly among vulnerable groups such as women, youth, and the elderly.
The COVID-19 pandemic further intensified these issues, with lockdowns, job losses, and social isolation contributing to a surge in mental health challenges. According to the World Health Organization (WHO), the pandemic led to a 25% increase in anxiety and depression globally, and Africa was no exception.
Access to mental health services is severely limited across Africa. Ghana, for instance, has only three psychiatric hospitals and fewer than 50 psychiatrists serving a population of over 30 million. This shortage of mental health professionals, coupled with inadequate funding, leaves many individuals without access to care.
Rural areas are particularly affected, as mental health services are concentrated in urban centers. The WHO reports that African countries allocate less than 1% of their health budgets to mental health, far below the global average. Generally, many mental health issues especially in Africa stem from drug and substance abuse especially by the youth.
Substance abuse is a growing mental health concern in Africa, including Ghana. In recent times, the working class have become known for the use of drugs and other banned substances. The misuse of alcohol, cannabis, and illicit drugs is on the rise, particularly among young people.
According to the Ghana Mental Health Authority, substance abuse accounts for 30% of mental health cases reported in the country. The availability of cheap, unregulated drugs exacerbates the problem. Substance abuse not only affects mental health but also leads to social and economic consequences, such as crime and unemployment.
Conflict, violence, and natural disasters have left many Africans, including Ghanaians, grappling with PTSD and trauma. In regions affected by armed conflict or political instability, the prevalence of PTSD is particularly high. Even in relatively stable countries like Ghana, domestic violence, road accidents, and other traumatic events contribute to mental health challenges.
A 2020 report by the African Journal of Trauma highlighted that trauma-related mental health issues are often underdiagnosed and untreated due to limited awareness and resources.
Employees are constantly working under more stressful conditions. Some employees suffer PTSDs and Trauma from work related incidents. Addressing these concerns requires a multi-faceted approach that combines awareness, investment, and policy reform. Organisations must consider mental health interventions as a critical part of employee relations and provide the necessary budget to intervene in tackling the issue.
By tackling stigma, improving access to care, and prioritizing mental health in their workplaces, organisations can pave the way for a healthier, more resilient workforce. The absence of this however may be seen as neglect by an uncaring employer and may cause employees to leave.
The demand for purpose-driven work
Millennials and Gen Z now make up a significant portion of the workforce, and these generations prioritize purpose over paycheck. A 2023 survey by PwC revealed that 83% of employees want to work for organizations that align with their values.
By 2025, this demand for purpose-driven work will intensify, with employees seeking roles that contribute to societal good, environmental sustainability, and ethical business practices.
Organizations that fail to articulate a clear mission or demonstrate social responsibility risk losing talent to companies that do. Employees are increasingly willing to leave jobs that feel meaningless or misaligned with their personal values.
The rapid pace of technological change is creating skill gaps across industries. Employees are aware that staying relevant in the job market requires continuous learning and upskilling. A 2023 report by LinkedIn Learning found that 94% of employees would stay longer at a company if it invested in their career development. In 2025, employees will expect employers to provide robust training programs, mentorship opportunities, and clear career progression paths.
These remain traditional expectations of employees for a long time and such expectations continue to rise with the ever changing and challenging workspace. Companies that fail to invest in their workforce’s growth will struggle to retain talent, as employees will seek out organizations that prioritize their professional development.
While non-monetary factors like purpose and flexibility are important, compensation remains a critical driver of employee retention. Inflation and rising costs of living are putting pressure on workers to seek higher wages. A 2023 survey by Glassdoor found that 45% of employees consider salary the top factor when deciding whether to stay at a job.
In 2025, employees will demand competitive pay, comprehensive benefits, and innovative perks such as student loan repayment assistance, childcare support, and wellness stipends. Companies that fail to offer attractive compensation packages will lose talent to competitors that do.
The rise of artificial intelligence (AI) and automation is reshaping the workforce. While these technologies can enhance productivity, they also create uncertainty for employees. A 2023 report by the World Economic Forum estimated that 85 million jobs could be displaced by AI and automation by 2025.
Employees in roles vulnerable to automation may feel insecure about their job stability and seek opportunities in more future-proof industries. Additionally, workers may leave companies that implement AI without transparent communication or reskilling initiatives.
How employers can adapt
To mitigate the risk of losing talent in 2025, employers must take proactive steps to address these emerging trends. Here are a few strategies. Employers should embrace remote work and flexible schedules to meet employee demands for autonomy.
Fexiwork should no longer be the exception but the rule and employees who can benefit from it should be allowed and in fact encouraged to use flexiwork schemes to balance their personal lives for a less stressful professional life. Employers shroud invest in mental health resources and foster a culture that values work-life balance.
Also, Employers should clearly communicate the company’s mission and values, and demonstrate a commitment to social and environmental responsibility. They must provide opportunities for upskilling and career advancement to keep employees engaged and future-ready.
A clear path for growth is a key motivation for employee retention. They should ensure that their pay and benefits packages are competitive and reflect the cost of living. Organisations should address concerns about AI and automation by involving employees in the transition process of change management, and offer reskilling programs for the benefit of all employees.
By understanding and addressing the factors driving employee turnover, businesses can position themselves as employers of choice in 2025 and beyond.
For further reading:
- McKinsey & Company. (2022). Independent Work: Choice, Necessity, and the Gig Economy.
- (2023). Workplace Burnout Survey.
- (2023). Global Workforce Hopes and Fears Survey.
- LinkedIn Learning. (2023). Workplace Learning Report.
- (2023). Employee Compensation Survey.
- World Economic Forum. (2023). The Future of Jobs Report.
