The labor market is and has always been an ever-changing thing.
Today, it’s more important than ever for employers to retain their best employees.
We have done some research and found some employee turnover statistics that every organization needs to know.
Employee turnover is inevitable, but there are some things you can do to avoid voluntary turnover while keeping your employees productive and engaged.
The key is to understand the idea of employee turnover and some things that cause it.
The following statistics will discuss recent data about employee turnover and some things to help you reduce it in your organization.
Let’s look at employee turnover post-pandemic in 2024.
Post Contents
- 1 Key Statistics
- 2 Top Employee Turnover Statistics in 2024
- 2.1 1. The overall employee turnover rate for 2021 came to 47.2%.
- 2.2 2. 68% of people who considered quitting their jobs did so without having a backup job ready.
- 2.3 3. 70% of job separations in the United States involved quitting in 2022.
- 2.4 4. 50.6 million workers left their jobs in 2022.
- 2.5 5. Over the past decade voluntary employee turnover in the United States doubled.
- 2.6 6. Nearly three in four disengaged employees sought new jobs in 2021.
- 2.7 7. 82% of employees said they would quit because of a bad manager.
- 2.8 8. 34% of new employees quit in their first 90 days because of a poor company culture.
- 2.9 9. 79% of voluntary employee turnovers are due to lack of employer appreciation.
- 2.10 10. The lack of skill and career development causes 66% of all job quits.
- 3 Employee Satisfaction Statistics
- 3.1 11. The most cited reason people quit their jobs involves money.
- 3.2 12. 58% of employees said they would think about changing jobs to work where salary transparency exists.
- 3.3 13. 62.3% of American workers said they were satisfied with their jobs in 2022.
- 3.4 14. 57.6% of American workers said they were happy with their salary/pay in 2022.
- 3.5 15. Women are overall less happy than men across all satisfaction factors at 60.1%.
- 4 Employee Replacement Costs Statistics
- 4.1 16. The cost of employee replacement accounts for twice the employee’s salary.
- 4.2 17. The increase in product failure is directly related to high employee turnover rates.
- 4.3 18. Companies with a lower turnover rate generally have happier employees.
- 4.4 19. Lower employee turnover rates enjoy better profitability.
- 4.5 20. It requires an average of between one and two years for an employee to reach full productivity in a single job role.
- 5 FAQs
- 6 Conclusion
- 7 Sources
Key Statistics
- The overall employee turnover rate for 2021 came to 47.2%.
- 68% of people who considered quitting their jobs did so without having a backup job ready.
- 70% of job separations in the United States involved quitting in 2022.
- 50.6 million workers left their jobs in 2022.
- Over the past decade voluntary employee turnover in the United States doubled.
- Nearly three in four disengaged employees sought new jobs in 2021.
- 82% of employees said they would quit because of a bad manager.
- 34% of new employees quit in their first 90 days because of a poor company culture.
- 79% of voluntary employee turnovers are due to lack of employer appreciation.
- The lack of skill and career development causes 66% of all job quits.
Top Employee Turnover Statistics in 2024
1. The overall employee turnover rate for 2021 came to 47.2%.
According to the 2022 Job Openings and Labor Turnover report by the U.S. Bureau of Labor Statistics, the rate of employee turnover, or separation was 47.2% in 2021.
The 2022 report revealed that 11.6% accounted for employee discharge and layoffs, while 32.7% were voluntary turnovers.
The 47.2% figure is down from 2020 by 9.6 percentage points.
(2022 BLS Report)
2. 68% of people who considered quitting their jobs did so without having a backup job ready.
FlexJobs surveyed over 2,200 people in 2022 between February and March asking why they wanted to leave their jobs and how they planned to do so.
The survey revealed that 30% of those surveyed said they were planning to quit their jobs. Another 25% said they had quit within the past six months (from the survey period).
A surprising 68% of these workers didn’t have a job lined up before quitting.
(FlexJobs)
3. 70% of job separations in the United States involved quitting in 2022.
This figure means that in 2022, a whopping 70% of all employee turnovers were due to them quitting.
This is the highest annual number of employees who quit that the Bureau of Labor Statistics JOLTs has ever recorded so far.
Moreover, employee separations in terms of quitting made up 2.8% of the overall annual separations of 3.9% in 2022.
(2023 BLS Report)
4. 50.6 million workers left their jobs in 2022.
A total of 50.6 million employees quit their jobs in 2022, which represents an average of 4.2 million per month.
Furthermore, this figure represents roughly 2.5% of the United States total workforce.
These kinds of numbers are those that employers need to heed so they can start a solid employee retention plan.
(2023 BLS Report)
5. Over the past decade voluntary employee turnover in the United States doubled.
Between 2011 and 2021, the employee turnover rates doubled in voluntary quits.
In just a decade, voluntary employee turnover doubled.
It’s so unbelievable that you might want to read that again.
When we look at the figures, in 2011, voluntary employee turnover rates accounted for 25 million but by 2021, that number accounted for 50 million employees who quit their jobs.
(2022 Work Institute Retention Report)
6. Nearly three in four disengaged employees sought new jobs in 2021.
Studies have shown the highest voluntary employee turnover rate occurs among disengaged workers.
In a 2021 Gallup survey it was discovered that 74% of actively disengaged workers and another 55% of those who are not engaged went looking for a new job.
In contrast, only 30% of engaged employees quit.
(Gallup 2)
7. 82% of employees said they would quit because of a bad manager.
In the United States, a GoodHire survey revealed that 82% of full-time employees said they might quit their job because of a bad manager.
That means it’s not just about overall management, but about the manager in charge.
Only 32% of survey participants said they thought the manager cared about their career path.
(GoodHire)
8. 34% of new employees quit in their first 90 days because of a poor company culture.
Company culture plays an essential role in employee retention.
The report for a JobVite survey revealed that 34% of new employees quit their job within the first 90 days of employment because of the company culture.
Company culture relates to how you do business, how you treat your employees, and how employees treat each other in the workplace.
Most onboarding takes 90 days, so new hires bug out before they even start working.
(JobVite)
9. 79% of voluntary employee turnovers are due to lack of employer appreciation.
Employees value employers who value them.
Data shows that 79% of employees leave their jobs because their employer doesn’t appreciate them.
This is a main reason that employees have cited for quitting their jobs.
Yes.
It’s that important to employees.
(NBC News)
10. The lack of skill and career development causes 66% of all job quits.
Career development is important to 88% of job seekers.
Likewise, in two of three workers who plan to quit within a year, 66% said it’s because there is a lack of career development or advancement in the workplace.
Another 64% said the same due to a lack of skills development.
(Workplace Intelligence)
Employee Satisfaction Statistics
11. The most cited reason people quit their jobs involves money.
According to 2021 research, the most cited reason that employees quit was due to not making enough money.
So, money is the main factor that causes employees to quit work, especially if they can find work they like where they can improve their income.
Being well compensated and having benefits is important to American workers.
In fact, 63% of them said just that in one survey.
(BetterUp)
12. 58% of employees said they would think about changing jobs to work where salary transparency exists.
Glassdoor conducted a study and one of the revelations of said study was that 58% of employees said they would quit their jobs for another if it was to move to a company with salary transparency.
In terms of generational thought on this subject, 70% of Gen Z workers said they felt the same way.
This data suggests that employees highly value salary/pay transparency in the workplace.
So, if your company does that, you may experience higher retention rates.
(LinkedIn)
13. 62.3% of American workers said they were satisfied with their jobs in 2022.
According to The Conference Board Job Satisfaction survey conducted in early 2023, 62.3% of workers in the United States said they were satisfied with their jobs in 2022.
This data comes from almost 26 components including work-life balance, non-compensation, better benefits and pay, and other factors.
(The Conference Board)
14. 57.6% of American workers said they were happy with their salary/pay in 2022.
In 2022, an increase of 2.2 percentage points occurred among workers in the United States who are satisfied with the money they make.
That came to 57.6% in 2022 compared to 55.4% in 2021.
We can gather from this data that employee retention is better when the pay is right.
(The Conference Board)
15. Women are overall less happy than men across all satisfaction factors at 60.1%.
Across 26 job satisfaction categories, women said they were 60.1% satisfied with their jobs while men accounted for 64% of men.
The areas that most impacted the gender gap included sick day policy, promotion policy, bonus plan, communication channels, and mental health policy.
(The Conference Board)
Employee Replacement Costs Statistics
16. The cost of employee replacement accounts for twice the employee’s salary.
Businesses in America are losing money each year because of voluntary turnover (employees quitting), but the fault isn’t fully with the employees.
In fact, most of the employee voluntary turnover is self-inflicted by the organization or employer.
It costs a business $75,000 in employee recruitment and training costs for a single employee making $60,000 a year.
(Gallup, People Keep)
It makes sense that with a high employee turnover rate that an increase in product failure would occur.
If a manufacturer loses employees and must replace them often, not only does it cost them twice the employee’s salary, but it also costs in higher product failure rates.
In fact, product failure happened 10.2% more often among organizations with higher turnover rates than in those with lower turnover rates.
(Knowledge at Wharton)
18. Companies with a lower turnover rate generally have happier employees.
Employee satisfaction is one of the benefits that comes with a lower turnover rate.
When employees are happy with at least most of their compensation and benefits, they are more productive and are easily retained.
(LSE)
19. Lower employee turnover rates enjoy better profitability.
How does a lower employee turnover rate correlate with better profitability? It has much to do with employee satisfaction.
When employees are happy with their work and employment benefits and compensation, workers are more productive.
When employees are more productive, the business enjoys an overall higher profit margin.
(LSE)
20. It requires an average of between one and two years for an employee to reach full productivity in a single job role.
According to BetterTeam’s research, it takes at least one to two years for an employee to achieve full productivity in their job.
One of the reasons businesses lose money when they must replace employees is that the replacement worker isn’t as productive as the former employee could have been there at least two to five years.
There are many adjustments to be made by the organization and the new employee.
(BetterTeam)
FAQs
What is employee turnover?
Employee turnover involves the rate at which workers quit an organization.
It’s often measured as the number of employees who leave a company in a given period, divided by the total number of employees.
What are the types of employee turnover?
The two primary types of employee turnover:
1. Voluntary turnover is when someone quits their job.
2. Involuntary turnover is when the company fires someone, either for performance reasons or due to layoffs.
What are the causes of employee turnover?
There are many distinct factors that can contribute to employee turnover.
Some of the most common causes include:
1. Uncompetitive compensation: Employees who feel that they are not being paid fairly are more likely to leave.
2. Lack of opportunities for job/career growth and development: Employees who feel that they are not being challenged or given opportunities to advance are more likely to leave.
3. Poor work-life balance: Employees who feel that they are working too many hours or that their work is interfering with their personal life are more likely to leave.
4. Toxic work culture: Employees who work in a toxic or negative work environment are more likely to leave.
5. Unclear expectations: Employees who are not clear about their roles and responsibilities are more likely to leave.
What are the consequences of employee turnover?
Employee turnover can have several negative consequences for a company, including:
1. Increased costs: Hiring and training new employees can be expensive.
2. Loss of productivity: When employees leave, their work must be done by someone else, which can lead to decreased productivity.
3. Damage to morale: Employee turnover can damage morale among the remaining employees, who may feel insecure about their own jobs.
4. Loss of institutional knowledge: When employees leave, they take their knowledge and experience with them, which can be a loss for the company.
How can employee turnover be reduced?
There are a number of things that companies can do to reduce employee turnover, including:
1. Competitive compensation: Companies should pay their employees fairly and offer competitive benefits.
2. Opportunities for career growth and development: Companies should provide employees with opportunities to learn and grow.
3. Work-life balance: Companies should offer flexible work arrangements and encourage employees to take time off.
4. Positive work culture: Companies should create a positive and supportive work environment.
5. Clear expectations: Companies should clearly define roles and responsibilities and provide regular feedback to employees.
What are the benefits of reducing employee turnover?
There are a few benefits to reducing employee turnover, including:
1. Reduced costs: Hiring and training new employees can be expensive. Reducing turnover can save companies money.
2. Increased productivity: When employees are happy and engaged, they are more productive.
3. Improved morale: Reduced turnover can improve morale among the remaining employees, who may feel more secure in their jobs.
5. Retention of institutional knowledge: When employees stay with a company for a long time, they accumulate knowledge.
Conclusion
If you’re an employer seeking top talent, these statistics should encourage you to ensure you are doing everything you can to retain employees.
At the very least, you can save money over training someone new, plus you won’t waste time training someone new.
We’ve shared with you the best ways to reduce employee turnover while improving employee retention.
You should understand that these employee turnover statistics reveal things employees don’t like and what they value.
Also, a satisfied employee is a highly productive and loyal employee.
We hope you have enjoyed reading this article and that it has given you value.
