These departures can be voluntary, such as when employees resign for better opportunities or career growth, or involuntary, including layoffs because of restructuring or terminations based on performance. Companies with high turnover often face increased recruitment and training expenses, interruptions in productivity, and challenges in maintaining positive morale among remaining staff. It’s interesting to note that the factors that would make employees leave and what would make them stay are not the same.

The average employee exit costs 16% to 213% of their annual salary depending on their pay. (Source)

For some employers, these frequently overlooked turnover costs can total hundreds of thousands of dollars annually. Therefore, companies that fail to recognize or track them may face poor financial results. Gallup’s employee retention and attraction indicators show that one in two U.S. employees have been watching for or actively seeking new jobs in 2024, the highest percentage in the last ten years. Another 26% quit because the job did not match their expectations set by the interview.

Frequent and meaningful work recognition impacts job commitment

۴۰% rated the relationship excellent, while the other 40% said they had a good relationship with their manager. On the more negative side, 14% of employees had a neutral relationship with their managers and 6% had a negative relationship. The success of a business is closely tied to the success of its people, as one could not survive without the other. To make this happen, keep an eye out for key employee retention statistics at all times, see how you can overcome obstacles to employee happiness, and listen to your workforce. This translates to an employee turnover rate of 10% or less if you don’t factor in dismissals and retirements. Employees are at the bottom of success for any company, which is not only measured in profits, growth, and customer satisfaction.

More thought leadership

The remaining simply feel they have climbed as high as they could up the ladder and there is nowhere else to go but out. Robie Ann Ferrer is an HR expert writer at Fit Small Business, focusing on small business HR and payroll software content. She has over eight years of content writing experience, handling different topics. Robie also worked as an HR specialist for 10 years where she managed various facets of HR—from payroll and benefits to employee services and HR systems.

Those in the $75-100K a year range require only a 1-10% salary increase to consider quitting their current jobs. Remote work statistics show that employees rate remote work and flexible schedules among the most desired benefits. With the global pandemic, employees expect remote and flexible work whenever possible. One in three workers is ready to look for another job if asked to return to the office full-time. Staggered work shifts are also on the rise, indicating that employers must offer more flexible benefits or they’d face employee retention problems. The top 5 Industries with lower average employee turnover rates include Mining and Logging, Information, Finance and Insurance, Real Estate and Rental and Leasing.

The indirect effects of employee commitment and achievement-striving ability between workplace environment of employees and their performance are also evaluated in this study. Two criteria were used to assess the model fitness, namely, the coefficient of determination (R2) and effect size (f2). Table 5 illustrates the quality criteria based on coefficient of determination. Similarly, 10% change is observed in achievement-striving ability and 8% change in employee commitment as a result of the workplace environment. Figure 2 also illustrates the coefficient of determination, and it can be assumed that these values of coefficient of determination are satisfactory (60). All the effect sizes have been found satisfactory and depict good quality criteria (52).

High performing employees are more inclined to search for other job opportunities, as they know that their skills can be coveted and appreciated by other employers. If they feel like they could get better work conditions, benefits and recognition elsewhere, it makes perfect employee retention statistics sense that they would be on the lookout for opportunities on job search apps. Although the Great Resignation has fizzled out in most industries, employee turnover remains high in many organizations.

Poor management skills make employees four times more likely to leave their job.

• Read our list to discover the most essential employee retention statistics.
• Too much pressure and work, combined with not enough hours in the day, leaves employees feeling unsatisfied and dejected.
• Employee retention is affected by a lot of factors that you can control—your company’s culture, employee engagement, and your overall onboarding process.
• Culture and connection to purpose remain imperatives for managers, with the added challenge of engaging an increasingly remote workforce.
• Despite the previous information we shared, this statistic shows that turnover can be avoided if employers focus their efforts and energy on understanding employee expectations and act accordingly.
• Since implementing Payactiv, JAE has seen a significant increase in employee retention and estimates that about 50% of the users are staying longer.

Exactly 44% of employees quit to take a better-paid job without thinking twice. Of all the employee retention factors, money is the strongest for it drives employees and often leaves employers with very few cards to play to retain them. 51.7% of employees resign on a voluntary basis and 35% are so unhappy with their jobs that they are job hunting around-the-clock.

In 2024, 51% answered “actively” – matching the same response for 2014 (the two highest data points over a decade) – ۲۱% more than in 2018 (the strongest loyalty indicator within the research window). When one in every two employees seriously considers job skipping, it’s a flashing alert signal that HR value propositions are faltering. Fluctuating economic scenarios, including inflation and cost-of-living, often influence employees’ decisions to seek higher-paying opportunities elsewhere. Furthermore, 77% of new hires with official onboarding programs hit their first performance milestone.9 One tool you can use to manage onboarding effectively is employee management software. All the study constructs possess greater AVE values (≥۰٫۵۰) which indicate that the convergent validity has been established (63) as illustrated through Table 1. Keeping turnover and attrition in check starts with having a solid plan—and a people-first mindset.

• They think it improved their work-life balance and mental health and helped them grow in their careers.
• Consider conducting team-building activities and games to bring more human connection.
• The more you’re replacing employees who resign, the more you’ll divert HR’s time and energy towards posting job openings, sorting through resumes, interviewing applicants, and onboarding new hires.
• Also, studying retention data and tracking metrics can help you get the bigger picture in terms of why exactly you’re having a retention issue.
• In both cases, employers should step up if they want to retain top talent and focus on critical areas like improving workplace culture, offering better benefits, and supporting career development.
• “HR leaders’ optimism is waning as recession remains on the horizon to start 2024.

It’s Time to Reimagine Employee Retention

Before approaching the academic teaching staff for data collection, we sought formal approval from the administration. The performance of employees is a popular issue, and this is influenced in a range of ways by the workplace. Behavioral and physical features of a typical working environment are critical.

Hive’s State of Employee Retention report reveals that businesses prioritizing talent attraction and retention within their HR strategies see increased retention rates. This targeted approach keeps talent in-house and helps companies build a loyal, committed workforce that drives organizational growth. Although HR departments play a key role in keeping employees in the company by using retention strategies and taking care of employees, they are not the only ones managing employee retention. Many workers quit within the first year, so employee retention statistics suggest that management — both mid- and C-level — bear responsibility as well. Employees who feel they belong and are valued within your organization are less likely to leave. Highly engaged employees are 3.4 times less likely to say they are seeking new jobs compared with their disengaged counterparts.

For additional perspectives, please check out our companion article on employee experience lessons from 2024 that can help burnout-proof your business this year. In addition to EWA, Payactiv provides companies with a means to put their employees on the path to financial stability and security. With our budgeting, savings, and debt support tools—all in the Payactiv app2—your people are empowered to control their financial futures.