The first thing you need to keep in mind is that your employees are people. So how do you lower your turnover rate? How do you maintain a healthy culture of retention that encourages employees to stay and succeed? However, you should aim for a turnover rate of 10% and, according to SHRM, most companies have a rate closer to 20% (and your target turnover rate will depend on different factors, such as your industry and your internal promotion rate. Some turnover is natural-no matter what you do, employees are going to leave for various reasons. Not to mention that as more people quit, your company culture suffers as others deal with stress and extra work. Every time an employee quits, the hiring process costs you at least one half of that employee’s annual salary (at most, this process can cost you 2X the salary of the employee who quit!). Why Worry About This?ĭespite the fact that most industries are settling down and lowering turnover rates, employees are still leaving in record numbers as they look for better opportunities. A whopping 47.4 million people quit their jobs throughout 2021, the highest number in years. Looking specifically at voluntary quits, though, 2021 actually holds the record. However, turnover rates count every employee who left a company over the year, including retiring, firing, and discharges. That reflects in the lower overall turnover rates. In 2021, the pandemic started winding down somewhat, and businesses got better and better at handling hybrid workplaces, work from home, and healthy practices. Professional and Business services: 64.2%.Trade, Transportation, and Utilities: 54.5%.But what about 2021? 2021 Turnover Rates Average turnover rate: 47.2% Turnover rate by industry: With the pandemic kicking off and many companies either closing their doors, downsizing, or trying to transition to remote work, these statistics are understandable. You probably saw this in your own experience. In 2020, every industry saw a sizable jump in turnover rates (leisure and hospitality jumped by over 51%!). Professional and business services: 69.2%.Trade, transportation, and utilities: 60.5%.Let’s look at 2020 now: 2020 Turnover Rates Average turnover rate: 57.3% Turnover rate by industry: Professional and business services: 63.5%Īs you can see, different industries have different turnover rates, but we can use 45.1% as a good baseline for the next year. Trade, transportation, and utilities: 49.4%.Let’s start with 2019's turnover rate, back when global virus outbreaks and quarantines were simply fun themes for board games to play with friends (the game Pandemic just isn’t the same).Ģ019 Turnover Rates Average turnover rate: 45.1% Turnover rate by industry: To fully understand the situation we find ourselves in now, we have to understand the average turnover rates of the recent past. Average Employee Turnover Rates by Industry In this post, we’ll talk about the average employee turnover rate over the past few years (and industry turnover statistics), what a good employee retention rate is in today’s work environment, and how to improve your retention strategy for the future. Because of this mass exodus, the question on many HR leaders’ minds is how to retain talent and thrive through the Great Resignation. Employees in all industries are leaving their jobs in record numbers, looking for better opportunities and greener pastures. If you clicked on this, you knew we were going to mention what everyone has been talking about for months now: the Great Resignation.
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