Employee retention is a goal of any organization to keep talented employees on board and build a positive work atmosphere in the company.
In today’s job market, the main power lies in the hands of the employees, and leaders must address the problems their employees face to retain their workforce.
Employee retention is the number of employees a company manages to keep in a specific period. When it comes to companies, employee retention is hard to earn but inevitable to business success.
Here are 22 eye-opening employee retention statistics that will help you understand what matters to the employees most, what makes them quit their jobs, and what makes them stay. Let’s jump right in!
Key Employee Retention Statistics
Let us have a look at 22 Eye-opening Employee Retention Statistics.
- 31% of the employees have resigned from their jobs within the first six months.
- Three million people in the US quit their jobs monthly.
- 65% of employees believe that they would find a better job somewhere else.
- 22% of the employees quit their jobs for professional development.
- More than 50% of organizations face difficulty retaining their valued employee groups.
- In March 2020, employee retention rates hit the record low in history.
- 87% of HR experts consider employee retention among the top priorities.
- Good employee retention can help organizations maximize their revenue up to 4 times.
- Companies with remote work options have a 25% lower turnover.
- By 2030, low employee retention will cost America $430 billion annually.
1. 31% of the workers reported quitting a job during the first six months
According to a survey conducted on 1,000 Americans at Bamboo HR, nearly 31% of the employees left a job before crossing the half-year mark.
During the initial job days, employees assess their workplace culture and rules to decide whether they want to keep working at the job.
To retain the new hires, it is important to make them feel a part of the company by defining their roles clearly and introducing them to their co-workers and higher management.
2. Over 3 million people in America quit their jobs each month
Data from the US Bureau of Labor Statistics shows that three and a half million employees have quit their jobs every month since January 2019, equivalent to the combined populations of Washington DC, Alaska, Wyoming, North Dakota, and Vermont.
These statistics show the magnitude of the retention issue many organizations are facing.
However, people may have different reasons to quit their jobs, and by recognizing them, companies can keep talented new hires longer.
3. More than 50% of the employees believe that they can find a better job within the first six months
Among many other contributing factors that are making employee retention more and more challenging, one is the underlying belief of the employees that they will find another job.
More than 50% of the employees think that they can find a better job within six months if the company lays them off, which says a lot about their confidence and drive.
4. An effective onboarding process can reduce new employee retention by 82%
The onboarding process is the company’s first introduction to the new hires. By setting a good first impression, you can build an effective employee-management relationship that can go a long way.
An effective onboarding process is more than just hiring and also includes letting your employees know more about your company’s history, culture, and values.
A study shows that a modern and in-depth orientation and setting the goals and objectives early enables employees to clarify their duties and reduce employee retention by up to 82%.
5. On average, an employee has a tenure of 4.2 years
How long does an employee stay loyal to their organization? Well, there are certain limitations to one’s expression of loyalty in the professional world.
According to employee loyalty statistics, an employee stays with the company for 4.2 years, on average.
The tenure rate may vary depending on the industry and position, such as managers usually having the highest tenure of up to 6.4 years.
6. Only 25% of employees identify with the company’s mission
Another shocking employee retention statistic says that only 25% of employees feel connected to their organization’s mission.
When employees feel connected with their company’s goals and objectives, they feel more passionate and push their boundaries to work harder to fulfill those goals.
Making employees feel needed is something companies need t work on to retain employees.
7. Replacing a trained employee can cost a company 200% of their pay
With an increase in the average turnover rate, the cost of turnover has also increased.
Research by SHRM shows that replacing an employee can cost as much as 50% to 60%, with the entire cost ranging from 900% to 200%.
The replacement cost of a trained employee can cost a company 200% of its salary. According to the 2019 data on employee turnover, the cost of turnover in executive positions and gone up to 213%
8. 80% of employees feel more engaged if their work is consistent with the company’s mission and values
Among the heaps of employee retention statistics, this one is quite interesting to know! Your company’s mission and core values are the foundation and heart of the company’s culture.
When the company’s vision is conveyed in a fathomable and conversational manner, it can help employees know what they need to do, and they feel more engaged and work harder to achieve their goals.
9. Employees are 4-times more likely to quit due to ineffective management skills
A report from TINYpulse Employee Retention says that nearly 40% of employees that expressed dissatisfaction with their supervisor’s performance have quit the job, compared to those who rate their supervisor’s performance highly.
More than 60% of the managers lack managerial training and fail to maintain a high standard at their jobs, which results in a higher turnover rate.
10.Employee burnout can lead to 50% of the annual turnover
Experts in HR report that employee burnout is the prime reason behind at last 50% of the annual turnover.
More than half of the employees in America feel overworked, regardless of the salary, benefits, or admiration they receive from their employer.
11. Companies with remote work options have a 25% lower turnover
After the pandemic, remote jobs have increased tremendously, and most people consider work flexibility as a make or breakpoint while looking for a job.
A report published by Owl Labs reveals that companies that provide the remote work option have 25% lower employer turnover than full-time jobs.
Hybrid workplaces and staggered work shifts are also one of the most popular employee retention ideas companies can work on.
12.16% of the Millennials and Gen Z employees quit their jobs due to inadequate technology
As we all know, Millennials and Gen Z are more tech-savvy. As a result, they have certain technological expectations from their workplace.
Younger employees are more comfortable with the technology and can work on jobs with old tech.
Statistics show that 16% of the younger employees have left their jobs because they felt the technology provided by their employer was inadequate.
13. 35% of the employees quit if they don’t get a raise
A survey conducted by Glassdoor on 900 workers showed that 35% of the workers say that they will quit the job if they don’t get a raise.
Employees under 35 and those making less than $50,000 a year are most likely to quit for better opportunities. Many of them said they feel underpaid or unsatisfied with the company’s benefits policy.
14. 8 in 10 employees would find a new job after one bad day
Among many reasons for the employee departure, lack of respect and toxic culture can push away top talent, despite the perks of the job. 81% of the job seekers cited dissatisfaction with the work environment as the main reason for seeking another job.
This behavior is more prominent in Gen Z and millennial employees, and 93% of them leave their jobs voluntarily.
15. 22% of the employees left their jobs for a professional development
Professional development is the top priority of every employee. LinkedIn’s 2018 Workforce Report shows that 93% of employees would stay at a company longer if they saw scope for professional development.
22% of the employees say that they have quit their company for professional development. Investing in the employee’s professional development and providing them with the necessary resources to stay aware of the latest trends and technologies is one of the most effective ways to increase employee retention.
16. Employee happiness is 23.3% more dependent on co-workers
A happy worker is a good worker. According to recent studies on employee retention, an employee’s happiness is 23.3% more associated with their co-workers than with managers or supervisors, and toxic company culture can lead to a high turnover.
Companies should pay extra attention to the everyday work culture and morale to maintain a healthy employee retention rate.
17. 90% of the employees are more likely to stay at the company that acts on feedback
When a company frequently asks workers for their feedback on work-related matters, it makes them feel valued and increases employee performance and retention.
A proactive approach to collecting employees’ thoughts about their workplace and experience shows that you respect their input, plus you can get some great ideas to improve your business and retain employees.
18. Improved management transparency can maximize employee retention by up to 30%
Transparency is one of the major qualities an employee seeks while selecting or staying at a company.
Employees value work ethics, and when a company shows transparency toward its workers, they feel more emotionally connected to the company’s goals.
Studies show that by improving management transparency, companies can secure a higher employer retention rate of up to 30%.
19. Only 77% of companies focus on the employee experience to increase retention
The success of any business depends majorly on its workforce. Employee experience plays a vital role in attracting and retaining key employees as well as reducing turnover.
Employee retention statistics show that 96% of the employees feel that the employee experience is a crucial part of their work-life and makes them feel happy and motivated at work.
Employ experience is what companies do for their employees to improve their experience at work and make them feel that the company is good enough for them.
20. 87% of HR leaders consider employee retention a primary concern
Research by Kronos has revealed that 87% of the HR leaders are well aware of the significance of employee retention and have made it a critical priority for the next five years.20% of the HR leaders face difficulty in maintaining focus on this priority because many factors distract their attention and budgets.
Most organizations nowadays have been thwarted by a lack of resources and competing priorities and are more interested in searching for new talent than keeping old employees.
Lack of process automation tooling, technology debt, organizational vision, and inadequate executive support are considered major obstructions in employee retention.
21. A high Retention rate can maximize the company’s profit by up to 4 times
Statistics on good employee retention show that higher employee retention can help companies maximize their profit up to 4 times.
It is important to remember that employee retention is not just about the number of employees being laid off or quitting and also means focusing on what type of employees are staying in the company.
Older employees who have been with the company for a while have better knowledge of the processes and perform better than new hires.
22. By 2030, America will lose $430 billion annually due to low employee retention
Current employee retention statistics indicate that the US will have to deal with the largest increase in turnover costs.
Based on the employee turnover rate by country in 2018, experts predict that by 2030, America is going to lose $430 million annually due to low talent retention.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.