Employee retention statistics show what US companies are doing right and what new practices they need to introduce or change to improve their business. Every business should aim to replace just those employees who are underperforming. However, retaining high-performing workers is a challenging process. They are aware of their impact on the business, and they want to be recognized for it. Still, thousands of companies worldwide don’t realize the importance of workforce retention and fail to do so.
Top Stats and Facts About Employee Retention Rate
- Almost four million American workers quit their jobs in April 2021.
- The average and ideal employee rate of retention in the US is 90%.
- 91% of millennials don’t expect to stay with the same company for more than three years.
- 24% of Gen X workers stay with their current employer due to financial concerns.
- 42% of current remote workers will stay at their job positions if they stay remote.
- 31% of employees would stay with their current employer for flexible work schedules.
- Physician retention programs can save organizations up to $250,000 per employee.
Employee Retention Statistics for 2021 — General Stats
1. 3.48 million Americans quit their jobs in April 2021.
The number of Americans quitting their jobs has never been this high. In April 2021, 3,952 million people quit, and it’s almost double the number of those who left a year earlier. For businesses across the US, this trend should be a cause for concern and a wake-up call.
2. The average employee retention rate in the US is 90%.
The average American company will replace no more than 10% of its employees this year. This figure is on par with the retention rate that thriving worldwide organizations maintain.
3. 44% of full-time employees feel burned out.
According to the new survey of 2,800 workers from Robert Half, 49% of employees have to deal with increased fatigue due to work overload. Burned-out employees are less confident, productive, and, ultimately, less likely to stay with the company, as some other employee engagement and retention statistics documented.
4. 49% of high-performing employees list good relations with colleagues as one of the reasons they stay with their employer.
Good relations with colleagues are the main reason many employees remain with their employers. Almost half of those surveyed listed this as one of the primary reasons behind them not switching jobs. Good salary, interesting work, good working conditions, and job security are also listed as important.
5. Only 19% of US employers offer paid family leave.
Various employee retention statistics reveal that not many employers provide new parents with the parental leave option. Human Resources retention strategies need to address this issue.
One of the most significant employee retention factors is offering paid leave. Mothers who decide not to take advantage of their parental leave option can expect serious difficulties. Unfortunately, the Family and Medical Leave Act (FMLA) is the only federal parental leave law, and it comes with numerous exceptions.
6. 33% of millennials think about finding new jobs after the pandemic.
Employee retention rate statistics indicate that millennials are not a generation that sticks with their first employer their entire career, regardless of the work conditions. However, one-third of millennials plan to quit their jobs after the coronavirus pandemic. It’s mainly because many employers didn’t cope well with the pandemic.
7. 91% of millennials expect to stay less than three years with the same employer.
(Future Workplace, Gigaom)
Job retention rates for young adults suggest that the millennial population has low expectations regarding their employers. The majority of them don’t expect to stay for long. Considering that they are the most significant part of the US workforce, employers might need to hear their demands.
8. 60% of millennials are open to different job opportunities.
Employers need to find ways to keep millennials engaged and give them enough reasons to stay with the company and attract new millennial employees. In this case, retention and attraction strategies equally matter.
9. Employees stay longer with a company now than they did 25 years ago.
In 1983, the average employee turnover was around 3.5 years. Today, an average employee stays with the same company for 5.1 years, employee retention statistics show.
Stats like this one just go on to show the value of training a company’s employees. This Coursera review outlines the importance of online training in today’s modern technological progress and why numerous successful businesses use it for their employees.
10. Employees who aren’t lonely are more likely to stay with the company.
The lack of a sense of belonging can make employees quit their job and decrease their performance. Some solutions for this problem are some group activities, meetings, etc.
Employment Retention Rates — Employee Turnover and Its Cost
11. Financial stability is why 24% of Generation X workers stay with their employer.
The generation born between baby boomers and millennials mostly stays with their employers due to healthcare and insurance concerns. Also, 56% of them are worried about losing these benefits, while close to 25% remain with their organization.
12. The average turnover rate in 2021 in the US is 57.3%.
According to the newest employment turnover statistics, the turnover rate in the US is on the rise. However, it drops to 25% when only voluntary turnover is taken into consideration, and 29% if considering just involuntary turnover.
13. 50% of employees will stay with the new employer permanently.
Over the past year, one in five employees has changed their careers. The main reason for switching careers for 27% of them is a better work-life balance, while 26% want better compensation and 26% search for something new. These numbers are based on why employees quit statistics.
14. 31% of people would stay with their current employer if they had more flexible work schedules.
The same survey has shown that flexible work schedules are among the top strategies employees can use to retain employees. Mobility opportunities are in second place with 25%. Remote-work options rank third as 22% of people looking for a new job would stay if offered such a benefit.
15. 52% of employees plan to find a new job in 2021.
According to the latest retention stats, over half of the 2,000 surveyed employees in the US and Canada intend to change their jobs in the post-pandemic period. A year earlier, only 35% of people felt that way.
16. Employees at companies with high internal mobility stay almost two times longer.
The most recent Linkedin report reveals that employees are more likely to stay longer at companies with highly developed internal mobility programs. What’s more, the median employee tenure for companies with high internal mobility is 5.4 years. Employee satisfaction statistics reveal it’s 2.9 years only for those with low internal mobility.
17. 21% of people list recognition as the principal reason for remaining at their current employer.
The retention rate would be much higher if the employers acknowledged their employees’ efforts more often based on the findings of the Workforce Institute’s report. As much as 80% of the respondents think a strong recognition culture makes employees engaged and satisfied.
18. 29% of employees with five or more years of service find new organizations.
Employee retention trends show that, lately, these employees have been leaving organizations more. People with less than one year of service used to switch jobs more often. A recent report tells us these two groups of employees have achieved equally low retention rates.
19. 54% of Generation Z will search for new jobs within a year.
As much as 41% of employees plan to find new jobs soon. Various employee retention studies display the percentage of the younger workforce members feeling the same way is even higher. The lack of flexibility and support could be the main reasons.
Employee Retention Rates by Industry
20. 73.8% of the hospitality industry workers in the US change their jobs.
It’s a worrying fact that 2/3 of hospitality employees leave their jobs. The latest data available on employee turnover in the US is 3.6%. The possible reasons for these numbers could be low payment and scarce benefits.
21. Over 60% of retail employees often look for new job opportunities.
The retail industry is known for keeping very few long-term workers in the US. In fact, its employee retention rate is pretty low, as the healthy turnover rate is between 10% and 15%.
22. 42% of current remote workers in the US will stay at their job positions if they stay remote.
After the pandemic is over, current remote employees expect their companies to continue expanding the remote work practice. If not, almost half of them will look for new jobs in companies willing to offer such opportunities.
23. 5-8% of full-time onboarded IT employees change their jobs.
(The Economic Times)
The IT industry has a high overall employee retention rate. However, it still falls into the category of industry sectors with healthy employee turnover rates.
24. Only 23% of technology professionals will voluntarily find new job opportunities.
The lack of growth opportunities, higher pays, and underutilized skills prompt technology professionals to search for new jobs in the field. That’s why IT companies develop talent retaining strategies.
25. 41% of nurses will stay at their current position.
Over half the surveyed nurses plan to find employment elsewhere due to insufficient staffing levels, demanding job nature, emotional and physical toll, and lack of support at work.
Employee Retention Cost — How Much Money Does Employee Retention Save?
26. Physician retention programs can save organizations up to $250,000 per employee.
(Jackson Physician Search)
Hiring new employees represents a huge time investment. Also, the recruiting process itself represents a considerable expense for the healthcare industry. Yet, 83% of the surveyed physicians say their employer doesn’t have a physician retention program.
27. Millennials cost the US economy $30.5 billion per year.
People from this generation change jobs more than any other generation – as much as 21% within the past 12 months. Employee retention stats show that three times fewer non-millennial employees have done the same. For companies, this is an enormous loss.
28. Keeping a bedside registered nurse saves around $44,000 per employee.
(Columbia Southern University)
The cost of replacing medical staff requires a vast sum of money regardless of the specialty. The healthcare industry can save between $33,000 and $56,000 per bedside registered nurse.
Employee Retention Statistics — Conclusion
After going through the stats listed above, one can’t help but wonder whether things will ever change for the average American worker. We learned that those who perform at a high level remain unrecognized, especially in high-stress work environments.
We also learned that most young adults don’t even expect to be recognized for their work. However, Human Resources is an always-evolving field, and there are always companies who excel at it. Just keep looking for them.
Frequently Asked Questions (FAQ)
What is a good employee retention rate?
An employee retention rate depends on many factors. Also, it varies across industries. Calculating employee retention rate is pretty simple. First, determine the first and the last day of the period and how many employees you had on both dates.
Second, subtract the number of new employees hired during that period from the total number on the last day. Third, divide the number you got by the number of employees on the first day of the period and multiply it by 100.
What are the 5 main drivers of employee retention?
Reducing turnover and keeping the talent within the organization goes a long way. Employers taking care of their employees need to make sure their needs are met. They should provide effective onboarding and give newbies a chance to get familiar with the company.
Professional development turns out to be quite important to many employees. Then, a positive workplace culture improves their mood on a daily basis. Ensuring employee benefits can drastically increase job satisfaction, leading to employee retention. A competitive salary is among the top drivers, as well.
Who is responsible for employee retention?
It all starts from the top. If the company has bad management, it will affect the employees in multiple ways. As a result, many of them feel underappreciated. Also, the absence of the manager’s interference can lead to total employee alienation.
Co-workers influence one’s experience, too. It’s crucial to define what kind of behavior is unacceptable under any circumstance. Making sure everyone abides by that rule is even more relevant. It turns out everyone is responsible for keeping employees.
What are the employee retention strategies?
Keeping track of various metrics has to be constant before applying the following strategies. An organization should set a standard onboarding process. New employees should know what their role is and what the employer expects from them.
Consequently, the employee will be more productive. Strong employee engagement is another strategy stemming from employees’ productivity. People often seek professional advancement opportunities. So, giving them a chance to grow, paired with internal mobility, is a winning combination.
Adequate salaries and bonuses have proven to be very efficient. But, according to the employee retention statistics, not for every generation.