If a business wants to grow and cultivate a culture of productivity, experience, and knowledge, it needs to retain staff members. Focusing on employee retention is the only way to keep staff members who make your organization great. With a high rate of turnover among your staff, you’ll lose valuable employees, which will cost you in productivity, the re-hiring process, and re-training a new person.
The best way to keep staff members is to hire the best people on the first try, pay a fair wage, understand their needs, and be a company worth working for. In these fascinating employee retention statistics, you will be able to see what works for businesses and what doesn’t when it comes to keeping the best employees.
So take a moment to sit back and read through these statistics on employee turnover and retention.
The Top Ten Staff Retention Statistics
- 47% of people experience burnout that can lead to them having to resign from their jobs.
- 79% of people who resign say that it’s because they felt unappreciated by their managers at work.
- People are 16% more likely to quit their job if they can’t give feedback to their managers.
- 25% of people surveyed said that they would move companies for a 20% increase in their income.
- It can cost around 33% of an employee’s annual income to replace them, which explains employee retention benefits.
- 80% or more say that they’re either looking for a new job or would consider a new job.
- Men who don’t receive a promotion are more likely to quit than women in the same position.
- 59% of Millennials have been in their current jobs for three years or longer.
- In 2018, the turnover rate for employment in hospitals was 19.1%.
- It is estimated that the cost of employee turnover in healthcare is around $27 million.
General Employee Turnover Statistics
1. In 2019, around 3.5 million people resigned in the United States every month.
This shocking statistic only shows people who left their employment willingly and doesn’t include data on people who were retrenched or fired.
2. According to a report by TINYpulse, employees who don’t believe their boss is doing a good job are 4 times more likely to resign.
Employee retention statistics also showed that 40% of people who believed their manager is performing badly had been to a job interview in the previous three months. In contrast, only 10% of those who valued their manager’s performance had been job searching.
3. People are 23% less likely to leave the company if they fully understand their job and what is expected of them.
This is why onboarding programs or guides are so important when bringing on new employees. It helps them acquaint themselves with the job and be more invested in their future at the company.
4. Studies show that 47% of people experience burnout during their careers.
5. 95% of leaders in HR agree that employee burnout is a factor in staff turnover rates.
In addition to this, almost 10% say that it has caused upwards of half of the annual employee turnover. The top three issues causing the burnout included unfair compensation, unreasonable workload, and poor management.
6. Employees who feel overlooked when it comes to praise are twice as likely to be looking for a new position elsewhere.
According to the statistics, 21.5% of employees who didn’t feel valued had been job hunting, compared to 12.4% who said they got positive validation for their good work. Managers who give their team members more positive feedback can keep more staff members.
7. Employees are more happy at workplaces where they can give feedback to their superiors.
Employee retention statistics from 2019 show that if people think they can’t honestly give feedback to their superiors, they’re 16% more likely to leave their company. Open communication is key to mutual understanding between employees and managers.
8. Almost 60% of people living in the United States would choose a position they enjoy rather than a position they dislike, even if it’s financially less rewarding.
This is true even when the preferred position pays 50% of what the other position paid. This just goes to show how important job satisfaction is.
9. 79% of employees who resign claim that it’s because they didn’t feel their efforts were appreciated.
(O.C. Tanner, Robert Half)
This is a good example of why employees quit in statistics. People who feel they aren’t appreciated at work are 34% less likely to keep their jobs for the remainder of the year.
10. Out of a thousand people interviewed, 31% said they’ve resigned from a job after only being at the company for less than half a year.
Almost a third of the people interviewed had worked at a company for six months or less. This means that people have started at a job and then left in less than half a year, according to employee retention rate statistics.
11. 80% or more of people with full-time jobs are either looking for a new job or would be happy to consider a new job.
(Cision PR Newswire)
This shows just how easy it would be to lose an employee if they were offered a position elsewhere with better benefits or pay. Therefore, employers need to up their game when it comes to creating the perfect working conditions for their top performers.
12. A quarter of the workforce will only move to a new company if it comes with at least a 20% increase in income.
25% of employed people say that they’d need to earn significantly more money to make the move from one employer to another. Moreover, 50% of the correspondents revealed they are looking to stay at their current job for another five years.
Cost of Employee Retention
13. Replacing an employee could cost as much as a third of their yearly income.
The costs involved in looking for a new hire can amount to 33% of the original employee’s annual income. These costs come from lost institutional knowledge, the time spent on finding a replacement, and the time it takes for the new employee to be fully productive.
14. Businesses in the United States are making a loss of around $1 trillion annually because of employees leaving.
The unemployment rate is at its lowest since the late 1960s. Due to this, it’s more difficult to fill an empty position at a company, and employers are struggling to replace employees who have left the business.
15. Employee retention can save businesses more money than they might think.
(M4 Workforce Solutions)
The cost of replacing an employee includes interviewing, training, and onboarding, as well as the time it takes to identify candidates who are right for the job.
Employment Retention Rates by Gender
16. Only 55% of women say that a boss has taken an interest in their career plans.
This statistic is a lot higher for men, with 70% of them saying that a boss has taken an interest in their career plans. Moreover, 66% of men meet with their managers every month, while only 55% of women do the same.
17. Men who don’t receive a promotion are more likely to quit than women in the same position.
One study on Millennial job retention rates reveals that men who are stuck in the same position quit their jobs at a rate of 1.7% above the average. With women, it’s only 0.7% above the average.
18. 6% of employees have quit their job due to a failed office romance.
(Cision PR Newswire)
This statistic is higher for women at 9% and lower for their male counterparts at 3%. To navigate workplace romances, employees need to check the company rules, keep their personal life out of the office, and prevent the romance from impacting their work relationships.
19. In the retail and consumer goods industry, the rate of turnover is far higher for women.
(Network of Executive Women)
The rate of turnover for women in retail and consumer goods is 31%, while for men, it’s only 24%. According to statistics, we are far from reaching gender parity, as women feel isolated in company cultures and not supported in new roles.
Employment Retention Rate Among Millennials
20. 44% of Millennials say that they want a flexible work environment.
Additionally, 30% say they want to have the opportunity to work from anywhere for the entire work week and not go into an office.
21. Millennials have the largest numbers in the workforce.
In 2017, it was reported that 56 million Millennials were looking to enter the workforce. Generation X follows that with 53 million people in the workforce and baby boomers had 41 million people in the US workforce.
22. Employee engagement statistics from 2018 show that 59% of Millennials in the workplace had been in their jobs for three years or longer.
As long as career growth and education are offered, Millennials are happy to be loyal to a company that is loyal to them. 42% of Millennials say that being able to grow and learn with the help of their employer is the most important thing to them.
23. Millennials quit their jobs more often than any other generation.
In the space of a year, Millennials resigned at a rate of 29.1%, as opposed to the resignation rate of other generations, which is as low as 9.2%. However, by taking tenure into account, the study reveals that Millennials resign two times as often as other generations.
Job Retention Rates in Healthcare
24. In 2018, the healthcare profession staff turnover rate had increased by 5% since 2010.
In 2017, the total turnover rate for hospital jobs for the year was 18.2%, which was considered to be a low point.
25. Certified Nursing Assistants had a high turnover of 27.7% in 2017.
According to the National Healthcare Retention & RN Staffing Report, the turnover rate for Certified Nursing Assistants in 2017 was the highest in healthcare positions. Patient Care Techs had a turnover rate of 19.3%, bedside registered nurses had a turnover of 16.8%, and Physician Assistants had a 14.2% turnover rate.
26. According to employee retention statistics from 2018, the hospital turnover rate was 19.1%.
(NSI Nursing Solutions)
That’s an increase of 0.9% from the previous year. Hospitals need to manage the cost of turnover as it has a huge impact on their diminishing margin.
27. From 2014 to 2019, 87.8% of the workforce of the average hospital left and was replaced by new employees.
(NSI Nursing Solutions)
Employee retention statistics reveal that this massive staff turnover rate is the highest in over 10 years. Hospitals need to think of clever ways to increase job satisfaction levels so they can retain their employees.
28. Industry consolidation, more competition in the market, and retiring executives are among some of the reasons why the turnover rate is so high in the healthcare industry.
Other employee retention factors that played a part in this turnover rate include more people considering going into consulting, people looking at short-term prospects, and the changing requirements and expectations of the employees.
29. It is estimated that the total cost of employee turnover in the healthcare industry is $27 million.
(Healthcare Finance News)
In order to reduce this high number, healthcare employers need to find sustainable ways to retain employees.
30. In 2016, the staff turnover rate for registered nurses was as high as 14.5%.
(Becker’s Hospital Review)
The cost to replace a registered nurse can be as high as $104,440. This number is based on all factors related to the cost of losing an employee and hiring a new one.
What is a good employee retention rate?
A good rate for employee retention is 90% or, on the flip side of that, a rate of 10% staff turnover. The more employees a business retains, the less they have to spend on re-hiring and re-training new employees. However, having a slight turnover rate for staff is not a bad thing as it brings in new perspectives and fresh energy.
What are the employee turnover rates by industry?
Globally, technology and software have the highest turnover rate per industry at 13.2%. In second place is retail and consumer goods at 13%. And third place goes to media and entertainment at a staff turnover rate of 11.4%.
Why is employee retention important?
Employee retention is important for several reasons. The cost of replacing an employee can be as high as 33% of their annual income. That cost includes the hiring process, re-training the individual, and loss of productivity. Other reasons include the difficulty of growing a business if there is a revolving door of employees, people leaving a business with the knowledge and ideas they’ve learned while working there, and the culture of the company suffering due to a constantly changing workforce.
What is the definition of employee retention?
The definition of employee retention is creating a sustainable way to ensure that a business’s best employees stay with them. It means retaining the current staff for a decent period of time. A high staff turnover rate is indicative that a business is not managing to keep its employees happy and fulfilled. High staff turnover can be costly. Retaining staff can save the business on a whole host of costs involved with re-hiring and re-training employees on a regular basis.
How do you ensure employee retention?
One way to ensure that your business retains employees is to hire the right people in the beginning. That way, they won’t be likely to resign because the job will be a good fit for them. You should also offer employees fair compensation and decent benefits. Creating a working environment that values work/life balance is also a good idea. Good leadership is an influencing factor in whether or not employees stay at a company. Finally, be a company that people want to work for.
Employee retention statistics are fascinating as they help you understand why people leave their jobs, how often they leave, who is more likely to leave, and how to get people to stay. For example, the healthcare industry has a high turnover rate among employees for a number of factors, including consolidation, more competition in the job market, and retiring executives.
- AMN Healthcare
- Becker’s Hospital Review
- Cision PR Newswire
- Cision PR Newswire
- Healthcare Finance News
- Lexington Law
- M4 Workforce Solutions
- Network of Executive Women
- NSI Nursing Solutions
- O.C. Tanner
- Robert Half
- West Monroe
- When I Work