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Employee Turnover Statistics

Last updated 27th Jun 2022
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The employee turnover statistics on this page offer an insight into the rate at which companies change workers. You can dispel stereotypes and myths by accessing the most up-to-date information on the topic. You will learn about the industries that do a good job of retaining employees and those that do not.

General Employee Turnover Statistics

This section reveals the general turnover statistics that enable you to learn more about the rate that companies change employees. These stats can help you find out what number of employees are likely to leave a company over a year.

Businesses can expect to lose about 6% of their staff because of involuntary turnover

Involuntary turnover occurs when there is a reduction in force or employees have to be fired because of poor performance. This is generally deemed as unavoidable and it occurs at a rate of 6%. Reducing this number includes hiring better employees to avoid reducing the number of poor workers.

Source: Society For Human Resource Management

The number of employees that have accepted a job only to discover they are a bad fit is at 66%

It is unavoidable for some employees to leave their jobs because they feel the position does not match their abilities. That is because you need to work at a role before appreciating the true demands. However, to reduce this statistic, employers could choose the new employees more carefully by explaining the role's demands.

Source: Careerbuilder

The average employee turnover rate is around 18%

Companies are not sure what employee turnover rate is healthy. It will be a different figure for all businesses, but the statistics show that it is around 18%. This figure might vary between industries. Also, the top performing companies might have lower turnover numbers compared with the ones at the bottom. In any case, corporations should expect to turnover around a 5th of their workforce annually.

Source: Society For Human Resource Management

The number of workers that leave voluntarily in the service, maintenance and manufacturing industries is 62%

This indicates that many employees are not happy with the work conditions in these industries. This might be the nature of these industries, but improvements in work conditions need to be made to keep employee turnover down. Case by case assessment can help figure out the specific reason employees are quitting a job voluntarily.

Source: Financesonline

The attrition rate is lowered by 49% at companies that have a clear mission

Statistics show that employee retention is higher if there is a specific mission and corporate culture. This indicates that employees need to get behind a company goal to feel like they have something to stay for. Therefore, companies need to figure out their mission statement to offer customers and employees alike a way of getting behind the brand.

Source: Linkedin

Demographics of Employee Turnover

Now let us turn our attention to the type of employees that are more likely to leave their jobs. This perhaps can reveal more about the causes behind employee turnover numbers. You will notice that the younger population is more likely to leave since there are so many opportunities and the culture towards work is shifting.

47% of millennials are planning to leave their jobs within 2 years and Gen Zers report a comparable number

This shows employers that almost half of millennials and Gen Zers are not working in positions they feel can lead to a career. Perhaps climbing the corporate ladder nowadays is not as important as getting a favorable work arrangement, which includes remote work positions.

Source: Business Insider

Employees that are burnt out are 2x more likely to convince others to leave alongside with them

Employees that are fed up because of tough work conditions may feel passionate about leaving their position and pitch the same idea to others around them. This negative outlook on the company can rub off on others and cause them to think about their own work position. Therefore, companies that want to avoid a chain reaction of employees leaning their company should consider avoiding burnout.

Source: Limeade

10% of employees aged 30-34 stayed with their company for the last 10 years and the figure for 60-64 year olds is 54%

Employees that are close to retirement age are more likely to stay with their companies. It is unsurprising that the older population is more likely to stay with a company for longer. That is because they have had more time to figure out what they want and establish a career they are happy with. Whereas the younger population is still trying different options to find a fit. It means companies that want to enjoy lower employee turnover numbers should hire from the older population.

Source: BLS.org

38% of employees share that they have met a co-worker who has pitched them the idea of leaving their work position

This statistic indicates that a large section of the population has faced pressure or ideas to leave work positions from other employees. This shows that a chain reaction of several employees leaving a company is possible. Corporations that want to avoid massive walkouts need to avoid burnout and other negative work conditions that can lead to this type of behavior.

Source: Limeade

The employees who are most likely to seek out new jobs because of burnout include Millennials (88%) and Gen Zers (94%)

These findings reveal that young employees might not be enthusiastic about working in a job where the demands are too high. They would rather explore other jobs or career options instead of sticking it out. Companies that want to keep highly skilled young talent need to provide favorable work conditions to avoid this employee turnover. However, this must be balanced with productivity and meeting project deadlines on time.

Source: Limeade

Negative Impact of Employee Turnover

In this section, we will reveal the statistics that should motivate employers to keep employee turnover low. In any industry some employee turnover is unavoidable and there are advantages as mentioned at the start of this page. However, when the number of employees leaving gets out of control, then it can have significant negative consequences. You can learn more by reading our guide on motivation theory and leadership.

It can cost companies an average of $160,000 when they lose employees with a salary of $80,000

This revealing statistic indicates that companies do not save money by getting rid of employees in all cases. That is because they lose productivity, which leads to a loss in sales and profitability. Therefore, companies need to retain employees to retain profitability – even if they earn towards the top of the pay ladder. You need money to make money and this statistic is an example of that.

Source: Gallup

It can cost 0.5 to 2 times employee compensation to replace an employee

The cost of replacing employees is high and not worth the resources in many situations. Therefore, unless getting rid of an employee is beneficial to a company, efforts should be made to keep them. Otherwise, companies are losing money because of employee turnover. This is especially true when one employee is exchanged for another with comparable skills. During the process, nothing is gained and money is lost. An employee's skills can be:

  • Social skills

  • Interpersonal skills

  • Stress management

  • Transferable skill

Also, there exists the term skillset, which is used to combine different abilities. In the following table, we mention the different categories of skill-sets:

Type of SkillExampleSoft skillsLeadership, teamwork, flexibility and conflict resolutionHard skillsSoftware applications, strategic planning and manipulating spreadsheetsFunctional SkillsFinancial planning and analysis, research and development

Source: Gallup

Company Culture Impact on Employee Turnover

Now let us turn our attention to employee turnover statistics that are related to company culture. Understanding the type of culture employees thrive in is important for boosting productivity and reducing the number of employees that want to leave. Shifts in company culture can have dramatic effects on employee satisfaction and their interest in staying loyal for the long term.

Noticing rudeness among co-workers is one of the primary reasons employee overlook a company

Naturally, employees want to work in a friendly environment, so rudeness among the workforce is a big-turnoff. Companies that want to keep their employees for the long-term should pay attention to the behavior of employees and avoid hostile work environments. Setting a good example from the top is a good strategy. Also, holding employees accountable sets the tone for others to follow instead of letting things slide.

Source: SHRM

The quality of the recruiter’s communication skills significantly contributes to the company’s image say 40% of candidates

Many companies choose to use recruitment firms for hiring employees or managing their human resources. This is productive since recruiters can seek out the best talent for the job. However, they are the interface that candidates face when figuring out if they should accept a job. Therefore, the recruiter must portray an accurate image of what the company is about. Otherwise, employees may accept a job under false pretenses and leave shortly after, which increases turnover statistics.

Source: Jobvite

The number of employees that share working 8-12 hours every day is 40%

This statistic indicates that many employees work long hours, which is one of the biggest factors for burnout. This could be unsustainable and lead to unhappy employees who want to leave their work position and encourage others to move on. Employers should offer work schedules that allow workers to enjoy a good life-work balance to reduce employee turnover.

Source: Skyelearning

Around 50% of employees that were not happy with the fit mentioned a hostile work culture as a reason

The large portion of employees that are not happy with work culture conditions means that many companies must make strides to improve the work environment for employees. Hostile work cultures are not only important for lower employee turnover, but it can also lead to better productivity and higher job satisfaction for long-term employees.

Source: Careerbuilder

Firms have lost around $223 billion over the last 5 years because of culture-related employee turnover

This revealing number indicates that companies lose large sums of money because of neglecting their culture. Massively improving company profits might include keeping their employees happy by implementing better work conditions. Hiring specialists that can look at company culture and suggest room for improvement could be an investment that provides a positive return on the bottom line.

Source: SHRM

Employees that left within the first 90 days and 28% of workers who declined work did so because of bad company culture

These statistics indicate that companies need to work harder to keep employees during the first few months by improving their work culture. Also, almost a third of employees leave job opportunities because of bad culture, which is a significant problem among many companies. It is losing companies money because they need to hire a new manager or a new employee who may also leave for the same reasons.

Source: Jobvite

Employee Onboarding Statistics

The process of onboarding employees can cause them to hit the ground running or leave for another work position if it is too slow. The statistics in this section reveal the state of the onboarding process for many companies and its effect on employee turnover.

40% of new employees shared that it took too long for HR to provide an answer

Companies that want to avoid missing out on valuable talent need to spend up the hiring process. This means HR needs to process applications faster and provide an answer to potential new hires. The top talent might have job offers from multiple companies. This is especially true in industries where there is a lack of workers to fill key positions.

Source: Docs.wixstatic

69% of employees who receive a good onboarding process are likely to stay at a company for 3+ years

This indicates that setting a good first impression for new employees allows them to stay for longer. Therefore, companies should invest in a fast and informative onboarding process that gets employees updated compared with the rest of the workforce. A better onboarding process also decreases the time it takes for them to become productive.

Source: Octanner

Frequently Asked Questions

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References

Our content quality team consulted the following expert sources to maximise the value and accuracy of this page:

  1. Careerbuilder
  2. FinancesOnline
  3. Linkedin
  4. Business Insider
  5. Limeade
  6. BLS.org
  7. Gallup
  8. SHRM
  9. Jobvite
  10. Skyelearning
Keith Hodges

Keith Hodges