The latest employee turnover statistics reveal that the turnover rate is high. Today, about 26% of employees are planning to change their jobs. If not satisfied, workers look elsewhere for better career opportunities, enhanced work-life balance, better benefits, and more money.
Losing employees costs businesses millions, ultimately impacting their bottom line. The good news is that you can arm yourself with the most important data we’ve shared below and create new strategies to get ahead of the employee turnover trend.
Key Employment Turnover Statistics (Editor’s Choice)
- The average rate of employee turnover is 22%.
- Employee turnover costs businesses $1 trillion a year.
- Over 27% of leaves are voluntary.
- Voluntary leaves dropped by 27% in 2020.
- The average turnover rate in the hospitality industry is 78.9%.
- Engaging the workforce can cut the turnover rate by up to 59%.
- 57% of workers are leaving their bosses, not companies.
- 54% of employees would leave their current job if offered a more flexible one.
General Employee Turnover Statistics
1. 63% of CFOs report a rise in employee turnover over the past three years.
The majority of CFOs report that employee turnover has been steadily increasing over the past three years, largely affecting their bottom lines. They name productivity loss (29%), training new hires (26%), and recruiting (25%) as the most expensive aspects of worker turnover.
2. In the US, the average employee turnover rate is 22%.
The average turnover rate in the US is 22%. About 15% of these are attributed to voluntary leaves, 6% are involuntary, while retirements account for 1% of turnovers. Pursuing a better job opportunity is why 81% of workers leave their current company. Additionally, 62% quit due to personal or family-related reasons. Another 41% of quits are related to employee relocation. The job turnover rate related to employees finding a job with a better base salary is 39%, whereas 29% decide to change careers.
3. 18.9 million Americans make a career change or exit the workforce every year.
About 18.9 million Americans, or 11.4% of the workers, switch occupations or entirely exit the workforce every year. Many choose to leave for a better-paid job, enhanced work conditions, or a career that’s better suited to their qualifications, while others retire.
4. The average tenure of workers aged 25–34 is only 2.8 years.
When it comes to turnover statistics by worker age, young people are more likely to leave their job within the first three years. In comparison, the average tenure of workers aged 55–64 is 9.9 years. Furthermore, 54% of employees aged 60–64 report staying with their employer for at least 10 years, compared to only 10% of 30–34-year-olds.
5. More than a third of employees leave in their first year on the job.
Workers are most likely to leave the company within their first year, employee turnover statistics reveal. About 38.6% of turnover due to workers quitting happens in the first year. What’s more, 43% leave their job within the first 90 days.
6. 35% of Black employees plan to quit their job in two years compared to 27% of White workers.
Workers from vulnerable communities are disproportionately impacted by employee turnover. Approximately 35% of Black employees say they plan to quit within two years, compared to 27% of White workers. Managers must ensure there’s diversity in the workplace and that employees of color feel as safe and as comfortable as White employees.
7. The cost of employee turnover is $1 trillion a year.
Losing workers is expensive and costs businesses $1 trillion per year. Beyond money, businesses are also losing talent, which can impact the company’s productivity and customer relationships. What’s more, data shows that employee turnover can threaten the brand and even lead to litigation.
8. Replacing an employee costs the business 33% of the person’s annual salary.
When looking at turnover statistics per employee, replacing a single worker costs businesses up to 33% of their annual salary. Moreover, filling an open position might take up to 42 days, resulting in more money going down the drain.
The Employee Turnover Rate After the Pandemic Hit
9. Employee-initiated job leaves decreased by 27% in 2020.
(Eagle Hill Consulting, SHRM)
The US experienced high rates of job switching in the past year. However, amid COVID-19, increased layoffs, and uncertainty, many people decided to stay in their current positions. As a result, the quit rates in 2020 decreased by 27% compared to 2019. Moreover, the quit rate fell to 1.4% in April, marking the lowest level since 2011.
10. The employee turnover data shows quit rates skyrocketed to 4 million in April 2021.
(CNBC, HR Drive)
One year after the pandemic started, the tight labor market and increased job demand gave workers new confidence in finding better employment, causing job switch rates to skyrocket. The quit rate of 2.7% recorded in April 2021 is the highest one since 2000. Nowhere was this trend as pronounced as in the retail trade sector, which saw workers in professional and business services, transportation, utilities, and warehousing leave en masse.
11. In April 2022, there were 6 million job separations.
The employee turnover percentage didn’t change much in April 2022 — the total number of job separations was estimated at 6 million. Moreover, there were 4.4 million quits, whereas the layoffs dropped to 1.2 million.
12. When the pandemic hit, 11.5 million workers were laid off.
In March 2020, governments issued stay-at-home orders, bringing the economy’s future into question. Employment turnover statistics reveal that this trend caused the quit rates to reach their lowest level in a decade; conversely, the layoffs increased significantly. The trend continued in April 2020, when 7.7 million employees were let go. The pandemic hit the retail and hospitality industries the hardest.
13. More than a quarter of employees plan to leave their jobs after the pandemic.
Once the pandemic is over, 26% of workers will leave their jobs. Approximately 80% will do so because of concerns about their career advancement. Additionally, the pandemic caused 72% of all employees to rethink their skill sets, while over 50% sought out training to switch jobs after the pandemic.
Average Employee Turnover Cost by Industry and Employee Groups
14. The turnover rate for executives is 7.7%.
A recent survey reveals that the turnover rate for executives is 7.7%. Among those who leave their company, 70% do so voluntarily, while 30% of exits are involuntary. This rate is almost doubled for managerial and professional employee groups — 14.3%. About 68% of leaves in this segment are voluntary.
15. The hospitality industry saw an average turnover rate of 130.7% in 2020.
The hospitality and restaurant industry employment turnover statistics confirm that the sector has around a 20% higher turnover rate than the entire private sector on average as of 2017. The estimated average for 2019 was 78.9%, but things worsened during COVID-19. The latest data reveals that restaurants were losing every third worker, which put this sector’s turnover rate at a staggering 130.7% in 2020.
16. The estimated turnover rate in the construction industry is 21.4%.
The construction industry has an average turnover rate of 21.4%, one of the highest across all sectors. If we look at the construction industry and its employment turnover statistics per state, the cost of replacing an employee can vary depending on the area. However, on average, finding a new employee costs between 16% and 20% of a former worker’s base salary.
17. The average turnover rate is highest in the retail and ecommerce sectors — 30.7%.
Retail and ecommerce have employee turnover rates of 30.7%, which are the highest across industries. The rate in the retail sector is 1.5 times higher than the general industry rate. At 22.6%, the gaming, entertainment, and media sectors are also among the industries with higher-than-average turnover rates.
18. At 9.1%, leisure and hospitality have the highest monthly turnover rate.
The typical employee turnover rates are highest in fast-paced industries. As one of them, the leisure and hospitality industry sees a turnover rate of 9.1% per month. The construction industry comes second at 6.2%, followed by education and health at 5.5%. On the flip side, manufacturing (3.4%), finance (3.8%), and information (4.1%) are the industries with the lowest monthly turnover rate.
19. Lobby attendants and ushers have the highest turnover rate by occupation — 24.3%.
When it comes to employees and turnover calculation by occupation, it’s clear that job roles in the service sector have the highest turnover rates. At 24.3%, lobby attendants and ushers top the list. Recreational protective service workers come second at 24.1%, followed by amusement and recreation attendants at 23%. Finally, coatroom and costume attendants see a 23% turnover rate each.
Top Reasons for High Employee Turnover
20. Poor hiring decisions impact 80% of employee turnover.
Wrong hires impact the organization in the long run, causing up to 80% of turnovers. Employees need to create a candidate persona and train the hiring managers to evaluate the applicants meticulously. It’s always better to take the time to fill in the role instead of rushing the process.
21. The voluntary turnover in 2020 grew from 1.9 million in April to 3.4 million in December.
There were 3.4 million voluntary leaves in December 2020, signaling a huge rise from 1.9 million in April. However, employee turnover statistics show that employers can prevent around 63.3% of departures. Therefore, a company’s employee retention strategy must be clearly outlined but remain highly adaptable. What’s more, employers should collect workers’ feedback and use it to create an effective plan to reduce turnover.
22. Companies with a clear mission see 49% fewer employee leaves.
Companies with a vital purpose and clear mission are better at motivating the workers and creating a positive culture. In such companies, employees serve as an extension of the brand and push themselves harder. As a result, they’re less likely to leave the company. Recent employee retention stats show that companies with purposeful missions see 49% less attrition.
23. 57% of workers leave their jobs because of their managers.
Leadership statistics indicate that people are leaving their superiors, not companies. Nearly 60% of workers have quit their job because of their bosses. About 14% have left multiple companies, and 43% have walked away from one company due to this reason.
24. Nearly 70% of disengaged employees would leave their current job for a 5% pay raise elsewhere.
The effect of employee engagement on turnover is undeniable — 70% of disengaged workers would quit their current job if they got a 5% pay raise elsewhere. On the other hand, engaged employees would need at least 20% more pay to leave their jobs.
25. 54% of workers would leave their current position for a more flexible one.
Over half of employees would leave a position if offered more flexible terms elsewhere. Additionally, 48% wish they could work remotely full-time or part-time. These statistics highlight the employees’ changing demands and the importance of employers adapting to lower their turnover rates.
Best Practices for Keeping a Good Employee Turnover Rate
26. Having an engaged workforce can cut the turnover rate by as much as 59%.
Engaged workers are invested in the company’s mission and motivated to do the work and give their best. So, the more engaged the employees are, the more likely they are to stick around in the long run. Recent stats reveal that having a highly engaged team can help companies reduce the turnover rate by 25–59%.
27. 92% of workers agree that having an empathetic leader is the most critical factor in low turnover rates.
Employee turnover stats show that 92% of workers say that having an empathetic boss could be an important factor in their decision to stay at the company. Additionally, 60% of employees would even accept a pay cut from an employer who shows empathy.
28. Leaders who show they care about the employees’ job satisfaction and future can prevent at least half of resignations.
Employee turnover reports reveal that 51% of employees who have left companies say that their superiors didn’t speak to them about job satisfaction or their future in the company three months before they quit.
29. Inclusiveness in the workplace can reduce turnover risk by 50%.
Feeling valued, respected, trusted, and safe helps employees feel like they belong. This can reduce a company’s turnover risk by a whopping 50%. Additionally, it can drive a 56% performance increase and a 75% reduction in sick days.
If you’re still wondering why you should go the extra mile and ensure you hire the right person for the job, consider the benefits of low employee turnover. Beyond money, you’ll save on acquisition and training time, cultivate a strong talent pool, improve the team’s morale, and increase the company’s overall productivity.
Luckily, employee turnover is preventable in most cases. Make sure to create a working environment that motivates and engages your workers. Remember to give appreciation to employees frequently, make the work conditions as flexible as possible, and show that you care. Last but not least, let your employees know that there’s room for advancement within the organization and talk about future plans.