Employee Turnover Statistics: How to Retain Employees in 2022

Turnover is inevitable. If workers decide to leave their workplace, a manager is unlikely to persuade them to stay. Employee turnover statistics recognize four types of turnover rate—positive and negative, voluntary and involuntary. Though it might be a bit nerve-racking, healthy turnover is necessary to keep a company’s balance.

Although staff changes may bring a company new and refreshed energy, turnover shouldn’t be taken lightly. High rates may be costly to the extent that they can harm a company’s objectives and mission. Besides the fact that the cost of replacing an employee can prove to be too high for a company, turnover is also time-consuming, as it takes about three months for a new worker to adapt and reach the optimum output.

Top Employee Turnover Stats and Facts: Editor’s Choice

  • Turnover costs may amount to 16%-213% of a lost worker’s pay.
  • 4.4 million Americans resigned from their jobs in February 2022.
  • 72% of employees leave their jobs to advance in their careers.
  • The average employment turnout rate in America is 19%.
  • Businesses lose 25% of their workers in the first year.
  • Over 50% of businesses find it challenging to keep their most precious workers.
  • 51% of workers think about looking for a new job.
  • Companies that offer remote work face a 25% lower turnover rate.

How Much Does It Cost to Replace an Employee?

The real power seems to be in the hands of employees. In case workers notice they aren’t appreciated enough, they don’t hesitate to leave the company. Likewise, they might choose to quit to pursue a different career path.

Whatever the cause, employee turnover costs by industry can be very high. Thus, owners and managers need to learn how to retain their staff. It might be challenging to earn employees’ trust, but, in the long run, doing so is the key to a company’s success.

1. 59% of employees are indifferent to their jobs.

Workplace motivation is on a downtrend. Employee retention statistics reveal that the motivation of nearly two-thirds of employees is tepid.

A study from last year shows that almost 60% of respondents stated they were “somewhat satisfied” or “neither satisfied nor dissatisfied” with their jobs. What’s more, 22.2% said they were “dissatisfied” or “very dissatisfied” with their roles. Only 17.9% said they were delighted with their positions.

2. 51.7% of workers resigned voluntarily.

Most employees aren’t afraid to resign if they find their jobs unfulfilling. According to employee turnover statistics, over 50% of employees voluntarily left their jobs in the previous several years.

35% of people acknowledged they were looking for a new job while at work, with 28% of them willing to remain in their current positions for less than 12 months.

3. Turnover expenses can range from 16% to 213% of an employee’s pay.

The more employees leave the company, the greater the consequences can be. Losing a well-trained and experienced worker may be rather expensive, as the employee turnover cost is relatively high and may amount to 16%-213% of a worker’s salary.

When an employee voluntarily leaves the organization, talent is lost but also vast sums of money. The organization has to spend staggering sums on advertising, recruitment, interviews, and, eventually, hiring. Thus, the average employee turnover costs amount to 33% of their annual payment.

4. The overall expenses of voluntary turnover in the US amount to $617 billion.

Replacement expenses, training, disengagement, and lost productivity make it quite expensive to lose or dismiss an employee. Overall, employee turnover costs exceed $600 billion.

Considering that the average expenses are 33% of a median income of $45,000 a year, it turns out that they amount to $15,000 per employee in America.

5. It would cost $213,000 to replace a CEO.

The cost of employee turnover differs depending on an employee’s wage and position. It takes 16% of a yearly payment to supplant low-paying roles (less than $30,000). For instance, it would cost $3,328 to replace a retail employee earning $10 per hour.

On the other hand, replacing midrange jobs ($30,000-$50,000 annually) costs 20% of a yearly payment. By analogy, the supplant expenses of a manager earning $40,000 would amount to $8,000.

Cost of employee turnover statistics reveal a colossal 213% expense to supplant highly educated executives with over $100,000 annual salary. Therefore, replacing a CEO earning $100,000 per year would cost $213,000.

6. 21.5% of workers who don’t feel appreciated or recognized are twice as likely to look for a new job.

Employees want their leaders and managers to recognize their efforts and the work they’re doing. Moreover, they tend to show more loyalty when validated. The lack of validation, however, may result in a worker’s resignation. 

In other words, as employee retention stats indicate, over 20% of workers who don’t feel appreciated enough after an exquisitely carried out assignment are twice as likely to seek a new role, as opposed to 12.4% of those who feel appreciated. 

7. 79% of employees state that the lack of recognition is the main reason for their resignation.

Studies on employee turnover highlight the importance of employee recognition and appreciation. Nearly 80% of workers who quit their jobs cited the lack of appreciation as the primary reason for their resignation.

The logic behind this is quite straightforward: employees want their superiors to recognize their hard work. When managers fail to appreciate the time and effort they invested, it’s not much of a surprise that employees decide to seek validation elsewhere.

8. 4.4 million US workers left their jobs just in February 2022.

Employment turnover statistics uncover that over 4 million American employees voluntarily resigned from their jobs in February 2022. Considering that the figure has reached a new high, it’s not a secret that the number of quitting workers is expected to rise.

9. 72% of employees resigned from their jobs to boost their careers.

Employees want to advance their careers. Therefore, it’s not surprising that they want to know what the future holds at a specific company. According to employee retention statistics, roughly three-quarters of workers that belong to the so-called high-retention-risk group decide to leave because they can’t see any opportunities to progress.

10. 49% of millennials admitted they would resign if they had an alternative.

Young employees are ready to find another job if they have a better choice. According to training and employee retention statistics, millennials are nearly half as likely to leave their current positions if they have the chance to do so. The primary reasons for departure include:

  • The lack of satisfaction with pay and benefits (43%).
  • The lack of adequate advancement prospects (35%).
  • The lack of training and development (28%).

Gen Z also tends to quit within two years for the same reasons. This is yet another point for companies to consider as far as average employee turnover cost by industry is concerned.

11. 54% of workers would consider accepting a new job at an organization for a 20% raise.

Salary is the primary incentive among employees. Over 54% would leave their current company and move to another that offers a pay raise of 20% or even less.

Employee Turnover Rate Stats and Facts

Turnover is unavoidable, but an overly high rate isn’t good for your business. Employees continually coming and leaving might indicate that something doesn’t work well. Understanding the essence of turnover is crucial to realize what might be wrong with the company’s structure and operation.

12. The average turnover rate per year amounts to 19% in the US.

The national average employee turnover rate for all industries amounts to 12%-15% annually. Everything above that percentage is considered high. Though rates may vary from one industry to another (even between companies), the figures of nearly 20% are somewhat alarming, taking into account employee replacement costs.

These average employee turnover rates are proof enough that it’s much better to invest in efforts that entice employees to stay rather than waste time and money on frequent recruitment and hiring procedures.

13. The national average turnover rate for all industries amounts to 12%–15%.

The US median turnover rate is somewhat higher than 10%. However, it’s not the same for all industries or companies. The employee turnover rate by industry goes as follows:

  • All government: 24.2%
  • Financial activities: 31.3%
  • Manufacture: 44.3%
  • Education and health services: 44.8%
  • Information: 44.8%
  • Trade, transportation, and utilities: 60.5%
  • All private: 63.3%
  • Mining and logging: 54.3%
  • Building and construction: 68.6%
  • Professional and business services: 69.2%
  • Leisure and hospitality: 130.5%

The worldwide employee turnover rate amounts to 10.9%.

14. 63% of financial officers have reported growth in employee turnover.

With over two-thirds of CFOs disclosing a rise in turnover, organizations are highly likely to obtain overachievers, employee turnover statistics suggest. But this would imply that other companies lose such exquisite professionals. 

To fight the growing trend of employee turnover, a business should keep their present workers engaged and committed and advance their employer brand to gain new talents.

15. Organizations lose 25% of their new workforce in the first year.

Turnover statistics show that organizations lose one-quarter of their staff in the first year. This figure is vital since 90% of companies know that workers decide to stay or leave the company during their first 12 months of employment.

Therefore, organizations may expect to retain 65%-75% of newly hired professionals during the first year.

16. Wrong hiring decisions lead to 80% of employee turnover.

Even though there may be an urgency to fill a vacancy, wrong hiring decisions and choices may result in high long-term costs. 80% of employee turnover rate is the outcome of wrong hiring.

Therefore, recruiters and HR managers should take time and be cautious while making final decisions on candidates. Also, companies should train their HR staff on how to source and evaluate candidates. In other words, it’s better to take a bit longer to choose the best applicant than to rush things.

17. Around three million US workers resign every month.

Different reasons may make employees leave their workplace. Employee turnover stats reveal that nearly three million Americans voluntarily quit each month.

For the sake of illustration, it would be as though the combined residents of Washington DC, Vermont, Alaska, Wyoming, and North Dakota resigned every month.

Such a large voluntary turnover reflects the seriousness of retention problems that many companies encounter. The more aware of employee turnover rates by industry, the greater their chances of retaining their employees.

In 2021, this number reached over 4 million workers per month, a trend that has been dubbed the Great Resignation.

18. Over 50% of companies worldwide face difficulties keeping their most respected employees.

Even though the unemployment rate has dropped to 4.2% in November 2021, the employee turnover rate has grown within many companies. But it’s not only about numbers. It’s also the type of workers who resign, as well as their reasons for doing so.

Cost of employee turnover stats and facts show that more than half of businesses at a global level encounter problems retaining their most productive employees. The statistics warn that employers should, on no account, take their staff for granted. If they do so, workers won’t hesitate to leave.

19. 51% of workers are contemplating a new workplace.

Employee turnover statistics forewarn that more than 50% of US workers observe the job market or actively seek a new role.

This is a massive problem for employers, as high turnover may generate immense costs. However, frequently moving from one job to another may affect workers’ engagement as well.

20. Companies that allow working from home see a 25% smaller employee turnover.

Remote work opportunities have a significant effect on employee retention. No matter if it’s flexible working hours, the occasional remote day, or a long-lasting employment contract, employee turnover rates show that, for many companies, remote work results in reduced employee turnover by one-quarter.

21. 68% of workers regard training as the most significant policy within the organization.

Employee training statistics highlight that employees are fully aware of the importance of training and development in the workplace. Over two-thirds of workers consider these two the most crucial aspects of a company’s policy.

Nowadays, most workers value their skills and strive to gain new ones. Thus, companies that offer training and development programs are more likely to retain their employees.

How Can Companies Prevent Turnover: The Takeaway

Employee turnover should never be ignored or neglected. Though employee turnover rates by company may vary, high rates undoubtedly show that there’s something wrong within the organization, its management, or recruitment processes. Turnover consequences can be quite immense, ranging from losing valued employees to wasting time and money on advertising, recruiting, hiring, etc.

The cost of turnover calculator is an extraordinary tool that can help calculate retaining and loss expenses. Should you notice that you’re throwing away too much money because your workers regularly depart, it’s high time you checked your company’s strategies and policies.

To prevent your employees from leaving, you should never take them for granted. Always support them and give them feedback. Cherish their strengths and talents, and let them implement them in their work. Lastly, let them know what you expect from them, and don’t turn a blind eye to their needs.

Frequently Asked Questions

Why is employee turnover expensive?

Cost of turnover statistics show that employee turnover is too costly as organizations have to pay immediate exit expenses whenever a worker departs. Immediate or direct expenses may involve payments for unused vacation or sick leave, additions to healthcare benefits, severance pay, and increased unemployment taxes. Additionally, recruiting, hiring, and training a new employee incur extra expenses.

Side effects and consequences of turnover, such as reduced productivity, loss of knowledge, and ruined morale, may also incur secondary expenses.

What is the ideal employee turnover rate?

The average turnover rate by industry varies between 18.7% in government and 78.7% in hospitality. In the US, that rate across industries is 12%-15%. However, the healthy average turnover for all industries amounts to 17.8%. But that rate is not the same for all industries. It may vary significantly from one industry to another, even from company to company.

Some industries, like retail and hospitality, tend to have high turnover rates, primarily because of part-time employees or students who don’t stay permanently in those positions.

How is turnover cost calculated?

It’s one thing to know the cost of employee turnover. Yet, it’s also vital to learn how to calculate employee turnover for future reference. To do so, you use the employee turnover calculator, a sheet that calculates the actual costs of employee turnover, according to four points:

  • Leaving employees offboarding (the costs of leaving employees, and the cost of colleagues and managers concentrating on the knowledge transfer).
  • Vacancy costs (the costs of dealing with duties and assignments until a replacement is found).
  • New employee recruitment (the expenses of advertising and recruiting a new hire).
  • New employee onboarding (the expenses of employing a new worker, manager oversight, and transferring assignments from colleagues).

Add up and multiply by the number of employees that left that position.

The average turnover rate by industry varies between 18.7% in government and 78.7% in hospitality. In the US, that rate across industries is 12%-15%. However, the healthy average turnover for all industries amounts to 17.8%. But that rate is not the same for all industries. It may vary significantly from one industry to another, even from company to company.

What is the average cost of employee turnover?

Losing an experienced employee is quite costly and may amount to 16%-213% of a worker’s salary, depending on the position. However, the average cost amounts to 33% of their annual payment.

To illustrate, 33% of an average salary of $45,000 per year translates into $15,000 per employee in the US. According to employee turnover statistics, the expenses exceed a colossal $600 billion.


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