With an ever changing labor market, it remains vital for employers to hang onto their top employees. Turnover is unavoidable, though there are steps you can take to prevent voluntary turnover and keep your employees engaged. Understanding the root of turnover is the first step to effective recruiting and employee retention.
Read on to learn 38 impactful employee turnover statistics, and how each can be used to reduce your employee turnover rate.
General Employee Turnover Statistics
1. The U.S. Average Annual Turnover Rate Is 47 Percent
The total separations rate of U.S. jobs is 47.2 percent as of 2021, according to the U.S. Bureau of Labor Statistics. This estimate represents all turnover — voluntary and involuntary.
Turnover rates vary greatly by industry and even more from company to company, making it important to regularly calculate your turnover rate to keep tabs on how you’re doing.
2. 70 Percent of All U.S. Employee Turnover Is Voluntary
Quits accounted for 70 percent of all U.S. job separations in 2022, the highest annual level recorded by the BLS JOLTS program. Additionally, quits composed 2.8 percent of the annual average separations rate of 3.9 percent in 2022.
3. Over 4 Million U.S. Employees Leave Their Job Each Month
In 2022, 50.6 million U.S. employees quit their jobs, an average of 4.2 million each month. This equates to around 2.5 percent of the entire U.S. workforce (totaling 166.1 million in 2021) turning over monthly.
While turnover is unavoidable on a company basis, being turned over each month means employers need to get serious about their retention strategy.
4. 1 in 3 Employees Who Quit Didn’t Have a Job Lined Up in 2021
Job seekers are increasingly taking risks, as 36 percent of employees who had quit within a six-month period in 2021 did so without having a new job lined up. In the same survey, among employees who said they were at least somewhat likely to quit within the next six months, 64 percent said they would do so without lining up a new job.
5. Voluntary U.S. Turnover Doubled Between 2011 and 2021
The voluntary turnover rate for U.S. employees doubled within a ten-year timespan, averaging from around 25 million quits in 2011 to almost 50 million quits in 2021, according to Work Institute.
Collecting and incorporating employee feedback is vital to creating an effective action plan that reduces turnover and increases employee retention rate.
Employee Turnover Cost Statistics
6. Replacing an Employee Costs Up to 2 Times of Their Annual Salary
The cost of replacing a singular employee ranges from one half to two times that employee’s annual salary, according to Gallup. In a 100-person organization that offers an average salary of $50,000, it can expect turnover costs of up to $2.6 million per year.
7. Lower Employee Turnover Correlates With Higher Business Profitability
Lower staff turnover was found to be reflected in higher profitability of business units, according to a study by The London School of Economics and Political Science (LSE).
8. Lower Employee Turnover Correlates With Higher Employee Satisfaction and Productivity
In the same study by LSE, employee satisfaction was found to have a strong negative correlation with staff turnover, thus also affecting employee productivity and customer loyalty.
9. Higher Employee Turnover Correlates With Increased Product Failure
An increase in weekly turnover rates for manufacturing workers increased product failure by a rate between 0.74 and 0.79 percent, according to research from the University of Pennsylvania. Additionally, failure was 10.2 percent more common for devices produced in high-turnover weeks following payday, in comparison to the lowest-turnover weeks immediately before payday.
10. On Average, It Takes 1 to 2 Years for an Employee to Be Fully Productive in a Role
It generally takes one to two years for a new employee to become “fully productive” in their role, leading to possible delayed productivity in comparison to a previous employee.
Think about how many projects could be finalized, products that could be launched and profits that could be brought in during that time. Losing top performers due to voluntary turnover directly impacts the bottom line long after you hire a replacement.
Employee Engagement and Turnover Statistics
11. Less Than 1 in 3 U.S. Employees Are Engaged at Work
Thirty-two percent of full-time and part-time employees working for organizations felt engaged at work in 2022, with 18 percent feeling actively disengaged. This marks the lowest ratio of engaged to actively disengaged employees in the U.S. since 2013, at a 1.8 to 1 ratio.
12. Almost 3 in 4 Disengaged Employees Looked for a New Job in 2021
The highest quit rates are among employees who are actively disengaged or not engaged at work. A 2021 Gallup survey found that 74 percent of actively disengaged employees and 55 percent of not engaged employees were looking for a new job, while only 30 percent of engaged employees were.
13. Turnover Increases 18 to 43 Percent in Low-Engagement Teams
The less engaged teams are, the more likely its employees are to actively seek out other job opportunities — and vice versa. From research by Gallup, teams with low employee engagement tend to see turnover rates 18 to 43 percent higher than teams with high employee engagement.
Management, Leadership and Turnover Statistics
14. 79 Percent of Employees Believe Empathetic Leadership Decreases Turnover
Empathetic leaders — those who are understanding, care about their employees and promote flexibility — are the kind of managers people want to work for. It should come as no surprise that 79 percent of respondents in an EY Consulting survey factor empathetic leadership into decisions to stay at a company, and 88 percent felt that empathetic leadership creates loyalty among employees toward leaders.
15. Managers Account for 70 Percent of Variance in Team Engagement
Managers are one of the most influential factors toward team engagement and performance, with 70 percent of variance in team engagement being determined solely by management.
If the relationship between employees and managers is positive, employees are more likely to be engaged in their role and loyal to the company for longer.
16. Implementing Regular Employee Feedback Results in 14.9 Percent Lower Turnover
For companies that implemented regular employee feedback, they saw 14.9 percent lower turnover rates.
Establishing a consistent cadence of employee feedback sessions can improve the quality of communication between managers and their direct reports. Ultimately, this helps to strengthen the employee-manager relationship, which can effectively reduce turnover and its associated costs. Additionally, conduct regular stay interviews and implement an exit interview program to understand what your employees value and what’s driving them away.
17. Employees Are Twice as Likely to be Disengaged When Ignored by Managers
Alternatively, a poor relationship with the direct manager will drive an employee toward disengagement. Employees are twice as likely to be actively disengaged if they’re ignored by their manager.
18. 82 Percent of Employees Would Quit Due to a Bad Manager
In a survey by GoodHire, 82 percent of full-time U.S. employees said they would potentially quit their job due to a bad manager. Plus, only 32 percent of respondents felt their managers really care about their career progression.
19. 52 Percent of Quitting Employees Say Manager or Organization Could Have Done Something to Prevent Them Leaving
According to Gallup research, 52 percent of voluntarily exiting employees said their manager or organization could have done something to prevent them from leaving their job. Additionally, 51 percent of the leaving employees said neither their manager nor other leaders spoke to them about job satisfaction within the three months before they left.
Company Culture’s Impact on Turnover Statistics
20. 34 Percent of New Hires Quit Within First 90 Days Due to Company Culture
Thirty-four percent of respondents who quit within the first 90 days of their new job cited company culture as a reason for leaving, in a survey by Jobvite.
A toxic company culture is easy to suss out. The way you do business, treat your employees and how they treat one another are all obvious elements of your office culture. Keep in mind that some onboarding programs can take upward of 90 days, which means new hires won’t even be fully acclimated before they decide to hit the road.
21. Toxic Company Culture 10.4 Times More Likely to Contribute to Turnover Than Salary
In comparison to compensation, toxic company culture is the most likely reason to contribute to turnover. In fact, it’s 10.4 times more powerful than compensation in predicting a company’s attrition rate within its industry.
While hiring solely for culture fit will lead to a culture of carbon-copy employees, you must look out for the warning signs that indicate a prospective employee would not agree with your type of organizational culture. During the interview process, confirm that they share your core values, believe in your company mission and are passionate about the role.
22. 3 in 4 Job Seekers Consider Company Culture Before Applying to Jobs
Seventy-seven percent of adults said they would consider a company’s culture before applying to a job, according to a Glassdoor survey.
Your company culture is a key part of your employer brand, and it’s one of the first things job seekers consider when scoping out your open roles.
23. Over Half of Job Seekers Value Company Culture Over Salary
Employers must be prepared to negotiate salary with top candidates. Fifty-six percent of Glassdoor survey respondents said company culture is more important than salary when it comes to job satisfaction.
Still, be mindful of the fact that for over half of employees, culture trumps compensation. Dedicating resources to build a strong company culture can help you attract top talent and minimize added payroll expenses.
Employee Recognition, Wellbeing and Turnover Statistics
24. 54 Percent of Quits Are From Lack of Feeling Valued
The top reason employees cite quitting in a McKinsey survey, at 54 percent of respondents, is due to not feeling valued at their organization. This is followed by not feeling valued by their managers (52 percent) and not feeling a sense of belonging at work (51 percent).
25. 79 Percent of Quits Are From Lack of Appreciation From Employer
Seventy-nine percent of employees who quit their jobs claimed a lack of appreciation from their employer was a major reason for leaving.
In addition to a competitive salary and exciting benefits package, highlighting employee achievements is a great way to show your appreciation. Employees want to know their efforts aren’t going unnoticed and that their contribution is valued; it’s also a critical aspect of employee engagement. Failing to recognize employees could drive them out the door and toward a more supportive employer.
26. Formal Recognition Programs Reduce Voluntary Turnover by 31 Percent
Organizations that implement formal recognition programs have 31 percent less voluntary turnover than organizations with no programs.
Keep in mind, however, that not every employee is going to respond well to public recognition. Consider acknowledging your employees during one-on-one meetings, in employee spotlights, via anonymous shoutouts or through a company-wide communication channel as well.
27. 54 Percent of Unappreciated Employees Felt They Couldn’t Handle Work Stress
Employee appreciation and burnout are closely linked, as underappreciated employees are more likely to burn out and quit. Fifty-four percent of unappreciated employees report that the amount of stress they deal with at work is more than they can handle, in comparison to only 13 percent of appreciated employees.
28. 3 in 4 Employees Experience Burnout at Some Point
According to Gallup, 76 percent of employees reported feeling burned out at least sometimes at work. Gallup also noted burned out employees result in higher turnover and lower productivity.
When turnover occurs, this puts a company at risk for additional turnover. When one employee leaves, their responsibilities fall to their teammates which, if the workload is too large, can drive them to look for other jobs.
Professional Development Importance and Turnover Statistics
29. 88 Percent of Job Seekers Want Career Development Prioritized
Before they’re even in the door, job seekers are scouting your learning and development opportunities. In a survey by Amazon and Workplace Intelligence, 88 percent of respondents said an abundance of career advancement opportunities offered by a potential employer was important when looking for a new job.
This is particularly relevant for young professionals, including Gen Z and Millennial employees, who are eager to grow and successfully launch their careers.
30. 66 Percent of Quits Are Due to Lack of Career and Skill Development
In 2 of 3 employees planning to quit within a year’s time span, 66 percent said this is due to lack of career advancement, and 64 percent said it’s due to lack of skill development opportunities.
From these respondents, Gen Z and Millennial employees were the most likely populations to leave their jobs due to lack of development and skill-building, with 74 percent ready to quit for these reasons.
31. Internal Mobility Increases Likelihood of Staying at a Company by 19 Percent
LinkedIn found that at the two-year mark of an employee’s time at a company, those who had made an internal move within had a 75 percent likelihood of staying at the company, while those with no internal move had a 56 percent likelihood of staying.
Just as a lackluster employee development strategy is a driver of turnover, creating growth opportunities positively influences retention.
Onboarding Effects and Turnover Statistics
32. 1 in 3 Employees Leave a Job Within the First 90 Days
Thirty percent of new employees have reported leaving a job within the first 90 days of starting. Plus, 41 percent of these employees cited leaving due to the day-to-day role not being what they expected.
Effective onboarding is crucial to ensuring employees have the tools and resources to succeed in their role, including carefully reviewing responsibilities, expectations and office policies.
33. Poor Onboarding Makes Employees 8 Times More Likely to Be Disengaged
New hires who have a poor onboarding experience are eight times more likely to be disengaged, with 40 percent of these employees feeling disengagement after just three months.
Along with covering responsibilities, you should also introduce employees to elements of your company culture and make them feel like part of a team. The emotional connection employees feel to their organization influences their productivity, happiness and desire to stay.
34. Positive Onboarding Make Employees 2.6 Times as Likely to Feel Workplace Satisfaction
Employees who felt they had an exceptional onboarding experience are 2.6 times as likely to be extremely satisfied with their workplace. Seventy percent of these employees also said they had the “best possible job,” all aspects that make them more likely to stay.
Perks, Benefits and Turnover Statistics
35. 56 Percent of Employees Would Leave a Job for Higher Pay
Pay still plays an important role in retention, as 56 percent of employees in 2022 cited pay as their top reason for looking at a job with a different employer. From these employees, 41 percent also would leave for just a five percent increase.
36. 45 Percent of Employees Leave Their Job Due to Lack of Work Flexibility
Forty-five percent of U.S. employees said they left a job in 2021 due to not having enough flexibility to choose when to put in work hours, according to a Pew Research survey. Also, 24 percent of these responses marked this aspect as a major reason for leaving.
37. 43 Percent of Employees Leave Their Job Due to Poor Benefits
Forty-three percent of U.S. employees said they left a job in 2021 due to benefits, like provided health insurance and paid time off, not being good. Of these responses, 23 percent said this aspect was a major reason for leaving.
Happy and healthy individuals are more engaged as employees. Including wellness offerings in your benefits package shows that you value your people and care about their overall health and happiness.
38. Companies Highly Rated on Compensation and Benefits See 56 Percent Lower Attrition
Companies that rated highly on compensation and benefits saw 56 percent lower attrition compared to companies rated poorly by the same attribute. Additionally, companies rated highly on flexible work arrangements saw a 137 percent higher headcount growth in comparison to poorly rated companies.
Source link
All Materials on this website/blog are only for Learning & Educational purposes. It is strictly recommended to buy the products from the original owner/publisher of these products. Our intention is not to infringe any copyright policy. If you are the copyright holder of any of the content uploaded on this site and don’t want it to be here. Instead of taking any other action, please contact us. Your complaint would be honored, and the highlighted content will be removed instantly.