HomeCareers Resources20 Essential Employee Turnover Statistics for 2022

20 Essential Employee Turnover Statistics for 2022

Last updated 23rd Sep 2022
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Employee turnover statistics on this page offer insight into how companies change workers. You can dispel stereotypes and myths by accessing the most up-to-date information on the topic. In addition, you will learn about the industries that do an excellent job of retaining employees and those that do not, based on employee retention rates.

Top 10 Employee Turnover Statistics for 2022

  • Businesses can expect to lose about 6% of their staff because of involuntary turnover.

  • 66% of employees accept a job only to discover they're a poor fit.

  • The percentage of workers that leave voluntarily in the service, maintenance, and manufacturing industries is 62%.

  • The average turnover rate is around 18%.

  • 47% of millennials plan to leave their jobs within two years, and Gen Zers report a comparable number.

  • Employees that are burnt out are two times more likely to convince others to leave with them.

  • It can cost 0.5 to 2 times employee compensation to replace an employee.

  • Around 50% of employees who were unhappy with the fit mentioned hostile work culture as the reason.

  • Firms have lost around $223 billion over the last five years because of culture-related employee turnover.

  • 69% of employees who receive a good onboarding process will likely stay at a company for 3+ years.

General Employee Turnover Statistics

Businesses can expect to lose about 6% of their staff because of involuntary turnover.

Involuntary turnover occurs when there is a reduction in force or employees have to be fired because of poor performance. This is generally deemed unavoidable and occurs at a rate of 6%. Reducing this number requires hiring better employees.

(SHRM)

The percentage of employees that have accepted a job only to discover they are a poor fit is 66%.

It is unavoidable for some employees to leave their jobs because they feel the position does not match their abilities. That is because you need to work at a role before realizing its actual demands. However, to reduce labor turnover rates, employers could choose new employees more carefully by explaining the role's demands.

(Careerbuilder)

The average turnover rate is around 18%.

Companies are often not sure what turnover rate is healthy. It will be different for all businesses, but employee turnover statistics show the average rate is around 18%. This figure varies between industries. Also, the top-performing companies might have lower turnover numbers than those at the bottom. In any case, corporations should expect to turnover around a fifth of their workforce annually.

(SHRM)

The number of workers that leave voluntarily in the service, maintenance, and manufacturing industries is 62%.

Employee turnover statistics by industry indicate that many employees are not happy with the work conditions in these industries. This might be the nature of these industries, but improvements in work conditions need to be made to keep employee turnover down. Again, case-by-case assessment can help figure out why employees quit a job voluntarily.

(Finances Online)

The attrition rate is lowered by 49% at companies that have a clear mission.

Employee retention statistics show that the retention rate is higher when a company has a specific mission and corporate culture. This indicates that employees need to get behind a company goal to feel like they have something to stay for. Therefore, companies need to figure out their mission statement to offer customers and employees a way to get behind the brand.

(Linkedin)

Job Turnover Rates: Job Satisfaction, Burnout, and Age

47% of millennials plan to leave their jobs within two years, and Gen Zers report a comparable number.

This shows employers that almost half of Millennials and Gen Zers are not working in positions they feel can lead to a career. So perhaps climbing the corporate ladder nowadays is not as crucial as getting a favorable work arrangement, which includes remote work positions.

(Business Insider)

Employee turnover data shows burnt out employees are two times more likely to convince others to leave with them.

Employees who are fed up with harsh work conditions may feel passionate about leaving their position and pitch the same idea to others around them. Unfortunately, this negative outlook on the company can rub off on others and cause them to think about their work position. Therefore, companies that want to avoid a chain reaction of employees leaving their company have to reduce employee burnout.

(Limeade)

10% of employees aged 30-34 stayed with their company for the last ten years, and the figure for 60 to 64-year-olds is 54%.

The employment retention rate indicates that employees closer to retirement age are more likely to stay with their companies. Unsurprisingly, the older population is more likely to stay with a company for longer. That is because they have had more time to figure out what they want and establish a career they are happy with. At the same time, the younger population is still trying different options to find a fit. Companies that want to avoid high attrition rates should hire from the older population.

(BLS.org)

38% of employees share that they have met a co-worker who has pitched them the idea of leaving their work position.

This is one of the employment turnover statistics that says a large section of the population has faced pressure or ideas to leave work positions from other employees. This shows that a chain reaction of several employees leaving a company is possible. Corporations that want to avoid massive walkouts need to prevent burnout and other unfavorable work conditions that can lead to this behavior.

( Limeade)

The employees who are most likely to seek out new jobs because of burnout include Millennials (88%) and Gen Zers (94%).

These statistics on employee turnover reveal that young employees might not be enthusiastic about working in a job with overly high demands. They would rather explore other jobs or career options instead of sticking it out. Therefore, companies that want to keep highly skilled young talent need to provide favorable work conditions to avoid this employee turnover. However, this must be balanced with productivity and meeting project deadlines on time.

(Limeade)

Labor Turnover Statistics: The Negative Impact of Leaving

It can cost companies an average of $160,000 when they lose employees with a salary of $80,000.

When it comes to the cost of employee turnover, statistics indicate that companies do not save money by getting rid of employees in all cases. That is because they lose productivity, which leads to a loss in sales and profitability. Therefore, companies need to retain employees to retain profitability—even if they earn towards the top of the pay ladder. You need money to make money, and this statistic is an example of that.

(Gallup)

It can cost 0.5 to 2 times employee compensation to replace an employee.

Employee turnover costs, as statistics suggest, represent a massive waste of resources. Therefore, unless getting rid of an employee benefits a company, efforts should be made to keep them. Otherwise, companies are losing money because of employee turnover. This is especially true when one employee is exchanged for another with comparable skills. During the process, nothing is gained, and money is lost.

(Gallup)

Retention Statistics and the Impact of Company Culture

Noticing rudeness among co-workers is one of the primary reasons employees overlook a company.

Naturally, employees want to work in a friendly environment, so rudeness among the workforce is a big turnoff which decreases the retention rate of employees in any organization. Companies that want to keep their employees long-term should pay attention to the behavior of employees and avoid hostile work environments. Setting a good example from the top is a good strategy. Also, holding employees accountable sets the tone for others to follow instead of letting things slide.

(SHRM)

The quality of the recruiter's communication skills significantly contributes to the company's image, say 40% of candidates.

Many companies use recruitment firms to hire employees or manage their human resources. This is productive since recruiters can seek the best talent. However, they are the representative that candidates face when figuring out if they should accept a job. Therefore, the recruiter must portray an accurate image of what the company is about. Otherwise, employees may accept a job and leave shortly after, which increases turnover statistics.

(Jobvite)

The share of employees working 8-12 hours every day is 40%.

This statistic indicates that many employees work long hours, which is one of the most significant factors for burnout. This could be unsustainable and lead to unhappy employees who want to leave their positions and encourage others to move on. Employers should offer work schedules that allow workers to enjoy a good life-work balance to reduce employee attrition rates.

(Skyelearning)

Around 50% of employees who were unhappy with the fit mentioned hostile work culture as the reason.

The large portion of employees that are not happy with work culture conditions means that many companies must make strides to improve the work environment for employees. Hostile work cultures are not only crucial to lowering staff turnover rates, but they can also lead to better productivity and higher job satisfaction for long-term employees.

(Careerbuilder)

Firms have lost around $223 billion over the last five years because of culture-related employee turnover.

This number indicates that companies lose large sums of money because they neglect their culture, directly increasing employee turnover rates. Hiring specialists that can look at company culture and suggest improvements could be an investment that provides a positive return.

(SHRM)

Employees that left within the first 90 days and 28% of workers who declined work did so because of bad company culture.

These employee turnover statistics indicate that companies need to work harder to keep employees during the first few months by improving their work culture. Also, almost a third of employees leave job opportunities because of bad culture, which is a significant problem in many companies. It's costly because they need to hire a new manager or employee who may also leave for the same reasons.

(Jobvite)

The Effects of Onboarding and Employee Retention Stats

40% of new employees shared that it took too long for HR to provide an answer.

Companies that seek valuable talent need to speed up the hiring process. This means HR needs to process applications faster and provide an answer to potential new hires. The top talent might have job offers from multiple companies. This is especially true in industries with a lack of workers to fill key positions.

(Digitate Ignio)

69% of employees who receive a good onboarding process will likely stay at a company for 3+ years.

Statistics on employee retention indicate that setting a good first impression for new employees allows them to stay for longer. Therefore, companies should invest in a fast and informative onboarding process that gets employees updated compared with the rest of the workforce. A better onboarding process also decreases the time it takes for them to become productive.

(Octanner)

Frequently Asked Questions

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References

Our content quality team consulted the following expert sources to maximise the value and accuracy of this page:

  1. Careerbuilder
  2. FinancesOnline
  3. Linkedin
  4. Business Insider
  5. Limeade
  6. BLS.org
  7. Gallup
  8. SHRM
  9. Jobvite
  10. Skyelearning
Martynas Pupkevicius

Martynas Pupkevicius

Martynas is a seasoned freelance writer that has written on a broad range of topics over his 10 year career. He enjoys diving into the research and sharing what he's learned with readers.