100 Employee Turnover Statistics and How to Leverage Them in 2024
Employee turnover quantifies how many staff leave a company, whether by choice or circumstance, balanced against total workforce numbers. Tracking these rates sheds light on organizational health and workforce satisfaction.
For 2024, the landscape of employee turnover shows significant patterns:
Resignation rates remain high, influenced by a demanding job market.
Younger workforce segments, particularly millennials, exhibit the highest turnover rates.
This article delves into these dynamics, offering a snapshot of where businesses stand and where they might head in terms of staff retention.
Current Employee Turnover Statistics
General Turnover Statistics
Over one-third of employees are expected to leave their jobs voluntarily by the end of 2023.
70% of executives leave their company voluntarily.
The annual employee turnover rate in the US is approximately 6,058.
The average unemployment rate in the US is 3.9%.
Over 5.5 million employee departures occurred, including resignations, layoffs, retirements, transfers, and dismissals.
18.9 million Americans exit the labor market or switch professions annually.
The US has a quit rate of 2.3%.
The discharge rate is 1.2% in the US.
The annual voluntary employee turnover rate in the US is 13%.
Involuntary turnover in the US stands at 6%.
Voluntary employee turnover has increased by two million annually over the past four years.
Approximately 3% of top-performing employees resign each year.
41 million employees opted to leave their jobs voluntarily.
2.86 million Americans resigned from their positions.
The production and maintenance fields saw 62% of workers leave voluntarily.
27% of Canadian hiring decision-makers view employee turnover as a significant challenge.
Median Tenure Statistics
The typical duration of employment for the average employee is 8 years.
The median tenure for wage and salary workers is 4.1 years.
29% of male wage and salary workers have been with their current employer for over 10 years.
27% of female wage and salary workers have been with their current employer for over 10 years.
Public agency workers have a median tenure of 6.5 years.
Private sector employees have a median tenure of 3.7 years.
Federal employees have the highest median tenure at 8.2 years among public sector workers.
Local government employees have a median tenure of 6.6 years.
State employees have a median tenure of 5.6 years.
Employees in management and legal occupations have a median tenure of 5.8 years.
Service occupation employees have the shortest median tenure at 2.9 years.
Turnover Reasons Statistics
66% of workers have accepted a job only to find it a poor fit.
Just 33% of people want to remain in their current positions.
Financial reasons are cited by 66% of individuals as the main motive for quitting.
64% of workers have considered leaving their jobs.
13% of employees constantly think about quitting.
51% of people actively seek new job opportunities regardless of the time.
40% of workers resigned at least once based on an impulsive decision.
73% of workers want to investigate new career paths.
33.1% of people are actively searching for a new employer.
63% of employees with a decade of service are open to new opportunities.
52% of employees planned to find new job opportunities in 2023. In 2022, that number was 37%.
47% of millennials and Gen Zers anticipate leaving their current company soon.
Employees who experience burnout are twice as likely to encourage colleagues to resign as well.
38% of employees have been tempted by coworkers to leave their jobs.
60% of employees cite poor working conditions and lack of supportive leadership as reasons for resignation.
44% of employees experiencing burnout consistently resent their employers.
One in three employees leaves due to feeling unappreciated and unsupported.
One in four employees resigns due to perceived lack of respect from company leaders.
38% of those who resigned did so intending to retire.
22% of people leave their jobs for career development.
7% of US citizens leave workplaces where they don’t get promoted.
Global and Regional Turnover Rates
Global Average Turnover Rate: 47% in 2022.
US Average Turnover Rate: 47.2%.
Brazil: 3.61% in 2024.
Italy: Average tenure of 12.2 years with an employer.
France: Average tenure of 10.8 years with an employer.
Germany: Average tenure of 10.2 years with an employer.
Spain: Average tenure of 10 years with an employer.
Sweden: Average tenure of 8.1 years with an employer.
UK: Average tenure of 8 years with an employer.
Denmark: Average tenure of 7.2 years with an employer.
South Korea: Average tenure of 5.9 years with an employer.
Industry-Specific Turnover Rates
Leisure and Hospitality: 85%.
Professional and Business Services: 64%.
Trade, Transportation, and Utilities: 55%.
Construction: 57%.
Manufacturing: 40%.
Education and Health Services: 37%.
Information: 39%.
Financial Activities: 29%.
Government: 18%.
Occupations with the highest separation rates include lobby attendants (24.3%) and ushers (24.1%).
28.4% of turnovers come from production, maintenance, service, and trades employees.
Office and technical employees account for 19.5% of turnovers.
Managerial and professional employees make up 14.3% of turnovers.
Executives constitute 7.7% of turnovers.
Retail and ecommerce industries have the highest churn rates at 30.7%.
Gaming, entertainment, and media industries have a churn rate of 22.6%.
The technology sector has a churn rate of 21.3%.
Life science and medical devices industries have a churn rate of 20.6%.
The retail industry turnover rate is 1.5 times higher than the general industry's.
Turnover Rates by Employee Demographics
Gen Z: 40% intend to leave their job within the next 2 years.
Millennials: 25% intend to leave their job within the next 2 years.
Gen Z in Consumer Roles: 49% want to quit in the next two years.
Gen Z in Retail: 48% want to quit in the next two years.
Gen Z in Energy/Mining: 46% want to quit in the next two years.
Gen Z in Education: 42% want to quit in the next two years.
Gen Z in Health Care/Life Science: 41% want to quit in the next two years.
Employee Tenure for Women in the US: Median of 3.8 years.
Employee Tenure for Men in the US: Median of 4.3 years.
Employees Aged 55-64: Median tenure of 9.8 years.
Employees Aged 25-34: Median tenure of 2.8 years.
Turnover within the First 6 Months: 31% of employees leave.
Turnover within the First 3 Months: 68% of employees leave.
Turnover within the First 12 Months: 37.9% of new hires resign within the first year of employment.
Cost Implications
Employee turnover in the US has an economic impact exceeding $630 billion.
The cost of replacing an employee is typically one-third of their annual salary.
In Canada, replacement costs vary between 75% to 200% of the individual’s annual income.
Expected talent shortages by 2030 could cost the US $435.7 billion.
Prolonged job vacancies adversely affect 81% of companies.
Hiring a new person costs up to 25% of their annual salary.
Training and development for a new employee typically cost around $1,000 and 25 hours.
For higher-level executives, replacement costs are over 213% of their annual salary.
These statistics provide a comprehensive overview of employee turnover across various regions, industries, and demographics, helping you understand current trends and areas needing attention for retention strategies.
Causes of Employee Turnover
Poor Management and Leadership Practices
Poor management significantly affects employee turnover.
Here’s how:
Lack of Support: Employees need support from leaders. Absence of this leads to frustration and, then, increased turnover.
Poor Communication: Clear instructions prevent mistakes, while miscommunication increases turnover.
Inconsistent Feedback: Regular feedback boosts morale. Inconsistency breeds dissatisfaction among employees.
Lack of Recognition: Recognizing achievements motivates employees. Neglect fosters disengagement, so people are likelier to have high job dissatisfaction rates.
Micromanagement: Trusting employees empowers them, but micromanagement stifles innovation and fosters disengagement.
Lack of Vision: Clear goals align efforts. A clear lack of vision causes confusion and affects productivity. As such, your employees are likelier to feel dissatisfied and confused.
Poor Conflict Resolution: Addressing issues promptly maintains harmony. Ignoring them escalates tensions.
These factors drive employees to seek better opportunities elsewhere.
Improved management practices reduce turnover, increasing retention and satisfaction. Proper leadership training can mitigate these issues, fostering a healthier work environment.
Effective managers understand their employees' needs and address them promptly. This results in a more committed workforce and reduced turnover rates.
Lack of Career Development and Advancement Opportunities
Lack of progression impacts turnover. Consider this:
Stagnation Demotivates: When you stagnate, your job satisfaction plummets.
Skills Underutilized: If you don’t use your hard-trained skills, your work-related engagement declines.
Career Goals Thwarted: If your employees have no clear advancement path, their frustration grows.
Competitor Offers Entice: When better opportunities arise from other workplaces, your employees are tempted to move on.
Mentorship Absence Noted: If you don’t give your new employees any guidance or mentorship, their professional growth stalls, and their unhappiness increases.
Innovation Stifled: Growth fosters innovation, while stagnation suppresses it. And career stagnation leads directly to job exit.
When you perceive no future in your current role, the logical step is to seek opportunities elsewhere. Effective organizations should implement robust development programs to foster employee growth, satisfaction, and retention.
Work-Life Balance Issues and Flexible Work Arrangements
Work-life balance shapes turnover significantly. Here's how:
Overwork Leads to Burnout: Excessive hours erode your health. It has been proven that rigid schedules heighten stress levels.
Personal Life Suffers: Without much time for personal life, dissatisfaction surges. Your employees feel they’re missing out on their lives’ most important moments. Limited remote work options deter retention.
Burnout Spurs Exits: Chronic stress prompts you to quit. Even worse, competitors offering flexibility attract your employees’ interest faster than during usual conditions.
When your work demands infringe consistently on life outside the office, staying becomes untenable. Modern workforces expect flexible working conditions that accommodate their lifestyle needs. Organizations that recognize and act on these expectations enhance employee retention and overall job satisfaction.
Compensation and Benefits Dissatisfaction
Compensation issues significantly drive turnover for several reasons:
Pay Falls Below Industry Standard: When your pay is below industry standards, you feel undervalued and underappreciated. This leads to a natural inclination to seek better offers elsewhere, where your skills and contributions are more adequately compensated.
Benefits Package Lacks Competitiveness: Insufficient benefits can significantly reduce job satisfaction. Comprehensive benefits, including health insurance, paid time off, and retirement plans, are essential for maintaining a positive work-life balance and overall well-being. A lack of competitive benefits makes the job less appealing.
Pay Raises Stall: Stagnant wages are a major demotivator. When there is no progression in your pay, you feel as though your efforts and loyalty are not being rewarded, which discourages long-term commitment to the company.
Bonus Expectations Unmet: Missed bonuses can be particularly disheartening, especially if they were expected as part of your compensation package. When bonus expectations are not met, you may reconsider your options and look for employers who honor their promises.
Healthcare Options Inadequate: Poor health benefits can be a deal-breaker. Adequate healthcare is crucial for you and your family’s well-being. Inadequate healthcare options push you to look for employers who offer better support.
Retirement Contributions Minimal: Inadequate retirement support signals a lack of investment in your long-term future. If you feel that your employer is not helping you secure your financial future, you may seek better opportunities elsewhere.
High Turnover Ensues: When compensation is inadequate, it propels you and your colleagues to exit the company. This high turnover can create a vicious cycle, where the company struggles to retain talent, leading to further dissatisfaction among remaining employees.
When your salary and benefits don't meet your expectations or industry norms, the incentive to remain loyal diminishes. Employers that proactively review and adjust compensation structures foster higher retention rates. Offering a competitive salary and comprehensive benefits package is critical to keeping you engaged and committed to your role.
Impact of the COVID-19 Pandemic on Turnover Intentions
COVID-19 has reshaped turnover trends, particularly among specific groups:
Working Parents Face Challenges: Childcare closures and remote learning have disrupted your work-life balance. The increased demand to juggle work and family responsibilities has made it challenging for working parents to stay in their current roles without flexible working arrangements.
Senior-Level Women Consider Exits: The pandemic has disproportionately affected women, particularly at senior levels. Burnout from increased home and work responsibilities has led to higher turnover intentions among senior-level women.
Remote Work Expectations Shift: The pandemic has shifted your expectations towards remote work. You now seek permanent flexibility rather than temporary solutions, and companies that fail to offer this may see higher turnover rates.
Stress Levels Impact Decisions: Increased responsibilities and stress levels at home influence your job choices. The pandemic has highlighted the need for better work-life balance and support from employers.
Career Reevaluation Common: You may have reconsidered your priorities during the pandemic, leading to a potential change in career paths. This period of reflection has caused many to seek roles that better align with their personal values and goals.
Support Systems Tested: The lack of employer support during the pandemic prompts your departure. Employers who failed to provide adequate support during this crisis are likely to see higher turnover rates.
Turnover Rates Increase: The strains of the pandemic have exacerbated existing workplace issues, leading to increased turnover rates as employees seek better working conditions and support elsewhere.
The pandemic intensified existing work-life challenges, especially for working parents and senior-level women, pushing them towards reevaluating their employment situations. Employers that adapt to these changing needs through supportive policies are more likely to retain their workforce. Enhanced flexibility and understanding are key to maintaining a stable team in uncertain times.
Financial Impact of Employee Turnover
Direct costs of turnover impact your bottom line in several ways:
Recruitment Expenses Accumulate: The process of recruiting new employees involves significant costs, including advertising job postings, conducting interviews, and screening candidates. These expenses can quickly add up.
Hiring Investments Rise: Administrative tasks and background checks required during the hiring process increase overall costs. These investments are necessary to ensure that the right candidates are hired but can be financially burdensome.
Training Expenditures Mount: Onboarding new hires demands resources and time. Training new employees to get them up to speed with company processes and expectations can be costly.
Severance Payments Add Up: Terminating contracts often involves severance payouts, which can be substantial depending on the employee's tenure and contract terms.
Administrative Burdens Grow: Processing exits and new hires strains your administrative resources. The additional workload on HR and administrative teams can lead to inefficiencies and increased costs.
Productivity Loss Hits Hard: Vacancies mean lost work until replacements are onboarded and fully trained. This gap in productivity can impact project timelines and overall company performance.
Knowledge Transfer Slows Down: Departing employees take valuable expertise with them, leading to a loss of institutional knowledge. This can slow down projects and affect the quality of work produced.
Each departure incurs significant recruitment, hiring, and training expenses, alongside severance and administrative costs, which you must manage carefully. High turnover rates can lead to escalating costs as continuous hiring and training cycles prevent financial stability and operational efficiency. Investing in retention strategies can reduce these direct costs and enhance your organizational resilience.
Indirect costs of turnover also affect your operations:
Productivity Dips Initially: New hires take time to reach full productivity. During this period, the overall productivity of the team may dip, affecting project outcomes and timelines.
Expertise Loss Impacts Output: Departing staff take valuable knowledge and expertise with them, which can impact the quality and efficiency of work produced by the remaining team.
Team Morale Suffers: High turnover rates can strain the morale of remaining employees. Constant changes in team composition can lead to feelings of instability and decreased job satisfaction.
Training Others Takes Time: Existing team members often need to spend time training newcomers, reducing their own output and affecting overall team productivity.
Client Relationships Weaken: Consistency loss due to staff changes can affect client satisfaction. Clients value stable relationships and may feel less confident in a company with high turnover rates.
Project Delays Occur: Staff changes can disrupt ongoing projects, leading to delays and potential missed deadlines. This can affect the company's reputation and client trust.
Cultural Continuity Disrupts: Rebuilding team dynamics takes effort and time. High turnover can disrupt the established company culture, making it challenging to maintain a cohesive and productive work environment.
These factors contribute to the hidden costs of turnover, affecting not just the financials but the overall health of your organization. Loss of productivity and expertise, along with weakened team morale and client relationships, can significantly disrupt business continuity. Addressing these indirect costs requires a strategic approach to retention, emphasizing a stable and engaged workforce to maintain operational efficiency and client trust.
Strategies to Reduce Employee Turnover
1. Improving management practices and leadership training
Conduct regular leadership assessments: Evaluate skills annually and identify improvement areas.
Develop personalized training programs: Tailor programs to individual needs. Remember to address specific weaknesses.
Encourage open communication: Foster transparency. That’s how you build trust within your team.
Implement feedback loops: Regularly solicit employee feedback and adjust management approaches accordingly.
Promote continuous learning: Provide ongoing educational opportunities. Even better, enhance leadership competencies.
Set clear expectations: Define roles and responsibilities. And ensure everyone understands their tasks.
Foster a supportive environment: Offer mentorship programs for employees. Remember to also guide managers in supporting employees.
Recognize and reward performance: Celebrate achievements. It’s extremely important to motivate through acknowledgment.
Adapt to changing needs: Stay agile and adjust strategies based on team dynamics. That’s why you should always measure training outcomes and refine your practices for better results.
Insider tip:
Invest in scenario-based training for your managers. It preps them for real-world challenges, enhancing adaptability. Prioritize developing emotional intelligence; it's key for handling interpersonal dynamics effectively. Regularly update your training content to reflect the latest industry trends and management best practices.
2. Enhancing Career Development Programs
Assess individual career goals: Take the time to identify each employee's career aspirations. Align these goals with the company’s strategic needs to ensure mutual growth and satisfaction.
Create clear development paths: Define clear steps for career progression. Provide employees with achievable milestones to help them track their progress and stay motivated.
Offer targeted training opportunities: Address specific skill gaps through targeted training programs. Ensure these programs are aligned with relevant industry standards to maintain competitiveness.
Implement mentorship programs: Pair employees with experienced mentors to foster professional growth. Mentorship programs help employees gain valuable insights and develop essential skills.
Regularly review progress: Conduct quarterly check-ins to review progress. Use these reviews to adjust development plans as needed and keep employees on track.
Promote from within: Prioritize internal candidates for promotions to boost morale and loyalty. Recognizing and rewarding existing employees’ efforts encourages long-term commitment.
Provide resources for learning: Offer access to online courses, workshops, and other educational resources to encourage continuous learning and development.
Insider tip:
Leverage industry-specific certifications in your development programs. This not only boosts your team’s expertise but also signals your commitment to their growth. Establish a clear timeline for achieving these certifications, making it a tangible goal that both motivates and retains your staff.
3. Offering Competitive Compensation and Benefits
Conduct market research: Regularly analyze industry salary trends to ensure your compensation packages are competitive. Benchmark your offerings against competitors to attract and retain top talent.
Adjust salaries regularly: Review and adjust salaries annually to ensure they reflect current market rates and maintain employee satisfaction.
Offer performance-based bonuses: Implement a bonus system that rewards exceptional work. This motivates high achievers and encourages others to strive for excellence.
Provide comprehensive benefits: Include health, dental, and vision coverage in your benefits package to address the diverse needs of employees.
Implement retirement plans: Offer retirement plans such as 401(k) options with company-matching contributions to help employees plan for their future.
Introduce flexible spending accounts (FSAs): FSAs can be used to cover dependent care and assist with medical expenses, supporting employees’ financial and personal well-being.
Support wellness programs: Offer wellness programs and gym memberships to promote healthy lifestyles and improve overall employee well-being.
Communicate benefits clearly: Ensure employees fully understand their benefits packages by clearly communicating the details and highlighting unique offerings.
Solicit employee feedback: Regularly survey employees to gauge their satisfaction with benefits. Use this feedback to make necessary adjustments and improvements.
Insider tip:
Consider linking compensation directly to business outcomes and employee impact. Introduce profit-sharing plans that reflect your team's contributions to business success. This aligns their achievements with company performance, directly incentivizing and retaining key talent by making their financial growth a mirror of your company's success.
4. Implementing Flexible Work Arrangements
Evaluate team roles: Assess which positions are suitable for flexible work arrangements. Adjust job descriptions accordingly to reflect these options.
Define flexible options: Offer clear choices for remote, hybrid, or compressed workweeks to accommodate different employee needs and preferences.
Set communication standards: Establish clear communication standards to ensure team availability and collaboration. Respect time zones to facilitate effective communication across remote teams.
Train managers: Provide training for managers to effectively lead and support remote teams, ensuring productivity and engagement remain high.
Monitor performance: Focus on tracking outcomes and results rather than just activity. This helps maintain accountability and performance standards.
Gather employee input: Solicit employee preferences and feedback on work arrangements. Use this input to adapt policies and create a more supportive work environment.
Communicate benefits: Explain the advantages of flexible work arrangements to your team, emphasizing improvements in work-life balance and overall job satisfaction.
Insider tip:
Explore asynchronous work methods, especially for teams spread across different time zones. This allows you to maintain continuous workflow without compromising on the quality of life for your employees. Regularly reassess how these methods impact project timelines and team synergy to fine-tune your approach.
5. Fostering a Positive Work Environment and Employee Engagement
Promote open communication: Encourage honest and transparent dialogue to create a feedback-friendly culture where employees feel heard and valued.
Recognize achievements: Regularly celebrate individual and team successes to boost morale and motivation. Recognition fosters a sense of accomplishment and appreciation.
Encourage collaboration: Facilitate teamwork and collaboration by breaking down departmental silos. This strengthens relationships and improves overall productivity.
Provide growth opportunities: Offer training and advancement opportunities to invest in employees’ futures. Supporting their career development leads to greater job satisfaction and retention.
Support work-life balance: Respect employees' personal time and promote flexible scheduling to help them maintain a healthy work-life balance.
Create a safe workspace: Address any workplace concerns promptly to ensure a healthy and safe environment for all employees.
Involve employees in decisions: Solicit input on policies and decisions to increase ownership and commitment. Involving employees in the decision-making process fosters a sense of belonging and loyalty.
Organize team-building activities: Foster camaraderie and strengthen interpersonal relationships through regular team-building activities.
Show appreciation: Express gratitude often to build a culture of respect and appreciation. Acknowledging employees' efforts and contributions fosters a positive work environment.
Regularly assess morale: Conduct surveys to regularly assess employee morale. Use the feedback to implement meaningful changes that enhance the work environment and employee satisfaction.
Insider tip:
Implement stay interviews to uncover hidden issues before they lead to turnover. Ask employees what keeps them engaged and what might prompt them to leave. Use this feedback proactively to address concerns and reinforce positive aspects of your work environment, ensuring higher retention rates.
Utilization of Turnover Statistics
Using Turnover Data to Improve Retention
Analyze turnover patterns: Identify trends in employee departures to pinpoint high-risk periods. This helps in understanding when employees are most likely to leave and why.
Segment data by demographics: Understand which groups are more prone to leaving. Tailor retention strategies to address the specific needs and concerns of these groups.
Correlate with performance data: See if top performers are among those leaving. Investigate the underlying causes to address issues that may be driving valuable employees away.
Adjust retention programs: Use the insights gained from turnover data to refine and improve retention initiatives. Focus on areas that will have the most significant impact on keeping employees.
Importance of Exit Interviews and Employee Surveys
Conduct thorough exit interviews: Gather honest feedback from departing employees to understand their reasons for leaving. This information is crucial for identifying and addressing underlying issues.
Use structured surveys: Standardize questions in employee surveys to ensure consistent data collection. This helps in comparing responses over time and identifying trends.
Analyze responses promptly: Quickly identify common themes in survey and interview responses. Address systemic issues to improve the overall work environment.
Share insights with leadership: Inform decision-makers about the findings from exit interviews and surveys. Use these insights to drive strategic changes that enhance retention.
Track improvement over time: Compare past and present data to measure the impact of interventions. Regularly tracking improvements helps in evaluating the effectiveness of retention strategies.
Benchmarking Against Industry Standards
Compare turnover rates: Evaluate your company's turnover rates against industry norms to determine if you are above or below average. This comparison helps in understanding your competitive position.
Examine specific metrics: Focus on key areas such as turnover by role and department. Analyzing these metrics provides a detailed understanding of where turnover is most problematic.
Learn from best practices: Study successful competitors to understand their effective retention strategies. Adapt these strategies to suit your company’s needs and improve retention.
Set realistic targets: Establish achievable goals for reducing turnover. Aim for continuous improvement by setting incremental targets.
Regularly update benchmarks: Stay current with industry changes and trends. Regularly updating your benchmarks ensures that your comparisons remain relevant and accurate.
Ensuring Organizational Success: Proactive Measures to Combat Employee Turnover
Employee turnover reflects deep-seated organizational issues and opportunities.
Tracking turnover rates highlights areas needing improvement and those excelling in employee retention.
2024 showcases a continuation of high turnover in sectors like healthcare and retail, driven by factors such as poor management, inadequate compensation, and insufficient career advancement opportunities.
Proactive strategies are imperative. These include refining management practices, offering competitive salaries, and implementing flexible work arrangements.
Looking forward, adapting these strategies will be crucial as the workforce continues to evolve. So, implement the strategies we discussed in this article to reduce turnover and enhance organizational stability.