Unraveling Data on Workforce Attrition and Developments for the Year 2024

Unraveling Data on Workforce Attrition and Developments for the Year 2024

Feeling down about employee turnover? Don't fret, my friend! Even with a high turnover rate, there's still hope. In this guide, I'll help you navigate ways to tackle employee turnover and create a more enticing work environment for everyone. So, let's get to it!

Hit the Ground Running: Onboarding and Employee Retention

Start from the beginning by crafting an impressive onboarding process. An effective onboarding program significantly boosts new hires' retention by 82% and their productivity by a whopping 70%BLS JOLTS[BLS JOLTS Statistical Tables]. Happy, engaged new hires are 18 times more committed to their new job compared to those with a lackluster onboarding experienceBLS JOLTS.

Employers should focus on engaging new employees from day one by sharing company culture, enabling them to meet people across the organization, and building relationships regardless of whether they're new to the office or the digital spaceRemote Work Surge.

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General Employee Turnover Statistics

Current Trends

Here's a bite-sized rundown of employee turnover statistics for 2023:

• The average annual separation rate (voluntary and involuntary leaving) is approximately 3.6%BLS Data.
• Voluntary departures account for roughly two-thirds of total separations.
• Job openings reached record highs in 2022, but dipped slightly in 2023, which may impact turnover rates.
• Hiring is slightly outpacing total separations.
• It now takes an average of 44 days to replace someoneAverage Cost of Employee Turnover.
• The average turnover rate for any industry is less than 20%, with voluntary attrition accounting for an average of about 13%[BLS Job Openings and Labor Turnover Survey].
• High performers are now at higher risk, with an average of 47% leaving their companies in 2022SHRM.
• High performers are 400% more productive than the average employee[PwC].
• 38% of people quit within the first year at a job, and 40% of them depart within the first 90 daysTurnover Cost and Calculator.

Employee turnover rates differ depending on various factors, including your organization's size, industry, and workforce. Let's dive deeper into the specifics!

Employee Turnover by Industry

Industry-specific employee turnover statistics will vary greatly, with vast differences between sectors. For example,

• In the tech sector: Over 13%
• In state and local government positions: Less than 1%

However, try to compare your retention rate with the region and industry you operate in. For companies with a large remote workforce, begin by examining geographic areas with the highest wages, as you may face competition from other high-wage areasRemote Work Surge.

High Turnover Trends in the Tech and Retail Industries

Tech Industry

The tech industry faces high turnover rates. In fact, last year, tech companies laid off more employees than after the dotcom bubble burst, with tech layoffs increasing more than tenfold from 2021 to 2022Gone para Tech. With such a high stress level, it's no surprise that tech firms often have among the highest turnover rates of all industries[LinkedIn].

Retail Industry

Retail workers also face high employee turnover rates. The industry average is approximately 13%, with areas such as retail sales, restaurants, and hospitality experiencing even higher turnoverTurnover Cost and Calculator. In the retail sector, it's essential to understand and address the root causes of churn in order to stabilize employee retentionRetail Workforce Turnover Report.

Impact of Age Group and Other Factors

Tenure Analysis

Research consistently shows that younger generations form trust more slowly and are willing to stay longer if they believe change and satisfaction may improveBLS Data. In this study, we've used a slightly different metric called tenure, which represents how long wage and salary team members expect to stay with their current employer. Here's a snapshot of some findings:

• The median employee tenure for men is 4.3 years.
• 28% of men have been with their current company for 10 years or more.
• The median employee tenure for women is 3.8 years.
• 26% of women have a tenure of 10 years or more.

BLS Data provides further insights and trends for other factors and demographics.

The Cost of Employee Turnover

Turnover can be extremely expensive, as it costs between 33% to 50% of the departing employee's salary in immediate replacement costsAverage Cost of Employee Turnover. However, in some cases, the total cost associated with turnover can range from 90% to 200% of the employee's salarySHRM.

Factors Contributing to Employee Turnover

1. Low Job Satisfaction
2. Lack of Career Development Opportunities
3. Work-Life Balance Issues
4. Management and Leadership Influence

Strategies to Reduce Employee Turnover Rate

Recognize and Reward

Employee recognition is key to increasing productivity, morale, innovation, and job satisfaction. Set aside time to show appreciation for your employees and offer external perks when possible[PwC Employee Engagement Report].

Support Internal Mobility

Open up opportunities for career growth in your organization, but also support internal applications and help your team members reach their goals[PwC Employee Engagement Report].

Invest in Employee Development and Benefits

By investing in developing your employees' skills and offering beneficial programs, such as mental health resources, childcare support, and flexible work arrangements, you can significantly decrease turnover rates and boost employee satisfactionSHRM.

Keep Up with Market Rates

Compensation should be competitive and reflect market standards, as underpaying employees often leads to high churn rates[PwC Employee Attraction and Retention Survey].

Get Flexible

Give your employees control over their work environment by offering remote or hybrid work arrangements and adapting to their preferencesRemote Work Surge.

Start at the Beginning: Onboarding and Employee Retention

Set your employees up for success by providing them with a strong foundation from the start. A robust onboarding program is essential for minimizing turnover and maximizing employee engagementBLS JOLTS. Make every Moment Matter in your onboarding process—encourage new hires to gain a deep understanding of your company, make connections, and actively engage with their roles[Welcome New Employees with a Great Onboarding Program].

[PwC]: https://www.pwc.com/gx/en/services/advisory/people-organization/ Menschen-Organisation/yockey-employee-turnover-hindwilke.html

1. To create a more enticing work environment and reduce employee turnover, consider implementing Hubstaff's productivity tools to boost your team's efficiency during the onboarding process. Try it out free for 14 days!
2. In the blog section of our company's website, you can find detailed statistics on finance, business, and careers, including employee turnover rates and strategies to tackle high turnover rates in specific industries such as tech and retail.
3. As part of our commitment to employee retention and happiness, we offer a competitive salary, career development opportunities, and a flexible work environment to support work-life balance. We also provide internal mobility to ensure our employees have the chance to grow within the company. Additionally, our comprehensive benefits package includes mental health resources and childcare support.

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