19 Employee Retention Statistics That Will Surprise you 2023

Let’s start with 2020’s turnover rate, back when the pandemic was disrupting every aspect of business and life. No matter how much data you collect, you won’t improve retention and turnover unless you do something. While tracking employee turnover and retention is the first step, the real work begins when you assess these rates in relation to your industry and identify what needs to be done to improve your retention strategies. Over the next five years, 87% of respondents surveyed by Kronos consider improved employee retention a high or critical priority. An analysis of 34,000 responses to the Work Institute’s 2017 Retention Report found that 75% of the reasons for employee turnover can be prevented. Let’s take a look at the industries with the best employee retention rates and worst employee retention rates.

CFOs themselves corroborate that employee retention statistics are concerning. Being in executive positions, they report witnessing the loss of productivity and company morale, all due to high turnover rates. When it comes to turnover costs, these professionals agree that the lost productivity represents a higher cost with low job retention rates. An employee retention rate is the percentage of employees who stayed on-staff from the beginning of a specific time period to the end of that same time period.

79 Percent of Quits Are From Lack of Appreciation From Employer

This generation of workers is unfortunately at risk of burning out at work, with 38% of them feeling stressed out all the time. On the other hand, 40% of Gen Zers intend to leave their jobs in the upcoming two-year period, and 46% of them feel stressed out all or most of the time. The millennial segment of the population largely contributes to a low employment retention rate. That said, the percentage of millennials who said they would likely leave their job within two years fell considerably in comparison to 2019 when it stood at 49%.

• If you can’t increase base rate, consider offering competitive benefits packages, instead.
• These types of learning opportunities not only create more skilled and confident employees, they also show your workforce that you care about their continued improvement and success.
• Conducting technical interviews with your chosen candidates either on-site or remotely is a good tactic for hiring the right talent and as a  consequence reducing the attrition rate in tech.
• This is because an employee’s feelings about their job, their feelings of belonging, and the sense that their voice is heard and valued all play a major role in employee retention.
• Voluntary turnover is any instance in which an employee actively chooses to leave.

According to Robert Cialdini, we frequently base our decisions on other people’s actions., We treat it as social proof which constitutes a shortcut to decide how to act. This is feedback gathered from engagement surveys, employee focus groups, but also from exit interviews. It’s essential to act on engagement surveys, as a lack of action can cause employee resentment and dissatisfaction and also a generally negative attitude towards engagement surveys going forward. So, you might calculate the time period of the pandemic period ( e.g., 1 Jan 2020 – June 2021), which is 17 months. Then, to make a comparison, you might want to calculate another period of 17 months prior to the pandemic (e.g., 1 Jan 2018 – June 2019).

Investigating why people leave

For instance, I have one colleague who now spends her mornings journaling and meditating — which greatly outweighs her old mornings of being stuck in traffic on her commute to work. For better or worse, the pandemic permanently shifted people’s mindsets when it comes to what they value. And one of the biggest value shifts is a newfound prioritization of time.

That’s why you should focus on developing your employees’ skills and competencies and chart clear career paths for them. Most of the time, organizations invest heavily in learning and development opportunities and resources; however, when reviewing the stats from learner management systems, usage can be quite low. Learning and development opportunities, therefore, need to be purposeful and just-in-time.

The Cost Of Low Employee Retention

However, without clear expectations and a deadline, it’s hard to recognize and reward employees’ work down the line. The interviewed HR managers have emphasized a lack of funding in many companies, outdated and manual technology, and the lack of executive support in reducing turnover. As part of the 2022 Job Seeker Nation Report survey, more than 1,500 US employees were interviewed, the results showing that 45% are searching for a new position or planning to do so in the upcoming year. Book a demo with one of our retention experts to see how Praisidio can help you solve turnover 6 months before it happens. We can help you build a program that’s easy to manage and that employees will love on our employee rewards and recognition platform.

For some, the COVID pandemic meant they’d have an easier time balancing the two thanks to their new home office environment. For others, the balance tipped the opposite direction due to more hours and less vacation time. If you want to boost employee retention with the best employee retention strategies, What Is The Average Employee Retention Rate by Industry? you have to listen to what your team wants. A great onboarding experience is quick, informative, and teaches about more than just daily tasks and industry practices. They should also tell new hires about the company’s culture and how they can both contribute to it and thrive within it.