In this blog post, we will introduce 7 most interesting facts about employee turnover that every employer and HR professional should know. Knowing these facts and statistics will help you prevent and tackle this serious and costly HR problem.
7 Interesting Facts About Employee Turnover
Employee turnover - a critical HR statistic
Employee turnover is one of the most important HR statistics.
When your employees leave, you need to replace them, which sets in progress a time consuming and costly full cycle recruiting process.
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Employee turnover can also have a wider negative effect on your company’s bottom line because of the loss of productivity and the negative morale in your team. It can also have a negative impact on your client relationships.
In order to help you successfully tackle and prevent employee turnover, we gathered some of the most interesting and useful employee turnover facts and statistics.
Top 7 employee turnover facts you need to know
Here is the list of the most important employee turnover questions, facts and statistics every employer and HR professional should know, followed by expert tips on how to successfully tackle these challenging employee turnover facts.
Fact #1: Employee turnover is a serious problem
Question: Is employee turnover really such an important issue? Is the so called the"pain of turnover" something employers really feel?
- 51% of employees are considering a new job.
Job market has changed. With unemployment rate lower than ever, candidates are now in the position to choose where they want to work.
Make sure you present a great employee value proposition to attract top talent and deliver on your promise in order to keep your best employees and avoid having them consider a new job.
Fact #2: Employee turnover is a costly problem
Question: How much does it cost to replace an employee?
- A direct replacement costs can reach as high as 50% - 60% of an employee’s annual salary.
Source: The Society for Human Resource Management (SHRM)
Keep in mind that direct costs are just a part of the total cost of employee replacement.
Total costs associated with a turnover range from 90% to 200% of an employee’s annual salary. A report from the Center for American Progress found that turnover can cost organizations anywhere from 16% to 213% of the lost employee’s salary.
Fact #3: Employers are aware of the turnover problem
Question: Are employers aware of the turnover problem?
- 87% of employers said that improving retention is a critical priority for their organization.
Source: Future Workplace and Kronos
While most employers are aware of how serious problem a high turnover is, many of them admit that they don’t have the time or resources to tackle it.
Make lowering your turnover rate your goal and commit to it! There are many simple and low-cost actions you can take in order to keep your best employees.
Fact #4: Turnover rate is the highest in the first employment year
Question: What is a critical period for employee turnover?
- Companies lose 25% of all new employees within the first year.
Source: Allied Workforce Mobility Survey
Pay special attention to your newly hired employees. Conduct an employee onboarding survey at the end of the first, third and sixth month of the new employee’s time at your company.
That way, you can identify your new employees’ concerns and frustrations early on and take action in order to eliminate them on time.
Fact #5: There is a simple way to prevent early turnover rate
Question: How can employers prevent high employee turnover?
- 69% of employees are more likely to stay with a company for three years if they experienced great onboarding.
Source: Society For Human Resources Management (SHRM)
Do you have a structured, consistent, well-organized employee onboarding system that lasts for a whole year? If you don’t, you should create one ASAP! Check out our comprehensive guide which will ensure that you successfully onboard your new employees.
If you already have an employee onboarding program, enrichen it with creative employee onboarding ideas!
Fact #6: Employees don’t leave because of money
Question: Why do employees leave?
- 72% of candidates are driven by career advancement opportunities which are the number one reason why people change jobs.
One of the best ways to nurture and engage your talent to stop them from leaving is providing them with an opportunity for career growth and development.
Make sure your best employees know that they have a chance to learn and grow in your company. Offer them modern employee training opportunities and open the discussion about the possibilities of their career advancement at your company.
Fact #7: Benefits can improve your retention rate
Question: Which benefits can improve retention rates?
- Companies that offer remote work experience 25% lower employee turnover rate.
Source: OWL Labs
Offer your employees a possibility of occasional remote work. Many employers hesitate to offer remote work opportunities to their employees, especially if they are used to being able to watch their employees at work.
However, this shouldn’t be a concern for you if you follow effective and proven tips to ensure that your remote employees are productive.
Employee turnover statistics [INFOGRAPHIC]
Here is the infographic with the top 7 employee turnover statistics:
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