Employee retention statistics show how companies keep and lose their employees and the factors that lead to it. People change jobs quicker than employers expect, especially if they are dissatisfied with the work environment and remuneration.
The rate at which companies employ and lose staff tells of their profits, causing many to take a closer look at their retention and turnover levels. Knowing how to keep employees and reduce turnover would help employers reduce the cost of hiring new employees and maximize productivity.
Employee Retention Stats at a Glance (Editor’s Picks)
The rate at which employees switch jobs despite seemingly good working conditions continues to baffle employers. Some companies are yet to understand the magnitude of the effect that turnover has on their business and what more they stand to lose if they leave it unchecked. Here are some notable stats:
- 31% of US employees quit new jobs within six months, and 68% of those do so in the first three.
- 87% of US human resource experts see employee retention as a top priority in the next five years.
- Employee retention trends show millennials plan on staying at a new job for ten years.
- 65% of employees believe they can find a better position at a different company.
- 77% of Canadian employees who left their current employers did it for a better job opportunity.
- Voluntary turnover rate in the US will hit 35% by 2023.
- One in six US Generation Z and Millennials will leave a job without the proper technology.
- 12 out of 100 workers in the US quit their jobs for lack of work-life balance.
Key Employee Retention Facts
No matter the sector a company belongs to, retaining staff seems the biggest challenge for employers. Human beings are the most valuable assets an organization has, so finding ways to keep them will always be vital.
1. 87% of human resource experts in the US believe that improved employee retainment should be a top priority in the next five years.
Employee retention rate statistics are clear - low employee retention made most human resource experts conclude that something needs to be done ASAP. According to an overwhelming majority, staff retention should be a top priority for most companies in the next five years. However, one-fifth of those interviewed also pointed out that there are too many competing priorities to fix the staff retention problem easily.
2. 31% of employees feeling burnout are likely to look for a new job.
Employee turnover rate benchmark results show that almost a third of employees experiencing burnout search for better job opportunities. A flexible working time that provides rest opportunities is highly valued by most employees but is ignored by most employers. When employees feel overworked, especially when the work is outside their primary responsibilities, they will leave the company.
3. 32% of US employees are more likely to remain with a company where the management recognizes and values their efforts.
There are a lot of unhappy employees, even if statistics don’t always show it. What is abundantly clear is that happiness plays a crucial role in whether a person remains in a company. Employees who feel recognized and respected by the management are far less likely to leave their jobs.
4. 31% of US employees will quit a job within the first six months, and 68% of those do so within the first three months.
Employee satisfaction statistics reveal that those with a good onboarding experience are more likely to remain in a company than those who do not. Those first months are crucial and must be marked with a warm welcome and a well-thought-out onboarding process.
5. US employees are 10% more likely to stay with their employer if proper career advancement opportunities are provided.
People enjoy having a sense of accomplishment. Onboarding is the first step towards making people feel appreciated and valued at the company (while also teaching them about their jobs), but having the ability to grow and learn new skills is an important part of continued employee work satisfaction. Give employees new opportunities, or they will find the opportunities themselves - at another company.
6. Statistics about employee retention in the US show that 40% of people with a positive work culture are less likely to look for a new job.
A workplace culture consists of shared values, belief systems, and attitudes shared by colleagues. A positive workplace culture improves teamwork, increases morale, productivity, efficiency, and aids workforce retention.
7. US millennials plan to stay at their current job for ten years on average.
Employee engagement and retention trends from 2020 show that millennials — those aged 25 to 40 — stay at their jobs for much longer than people give them credit for. Stats gathered by The Harris Poll on behalf of Zapier put to bed the belief that the younger generation likes to skip from one job to the other. On the other hand, Gen Z wants to stay a maximum of six years, but, as with millennials, most do not get anywhere near that number in reality.
8. Employee retention statistics reveal that one in six Generation Z and Millennials will leave a job without access to proper technology.
16% of Gen Z and Millenials will readily leave a position where they feel the technology provided by their employer does not match their skill set. If the tech is redundant and not up to date, and the employer does not attempt to upgrade it, the staff belonging to these generations will leave for a company that provides what they need.
9. US employers could have retained more than three in four employees who left their company.
Often, when people leave their jobs — aside from those who retire — they do so for otherwise avoidable reasons. Employee retention trends in 2021 are likely to be the same as those gathered by the Work Institute in 2019: employers will be more successful in retaining people if they pay closer attention to the issues raised by their staff and positively address them on time.
10. 22 out of 100 employees quit their jobs for career development.
Numbers from job satisfaction statistics always show a lack of career development as the number one reason people leave their jobs. Most people have a career plan and a time frame to achieve it, and if their current jobs do not offer them opportunities for advancement, they will find a place with the type of growth they want.
Employee Turnover Rate by Country
A country’s turnover rate depends on the number of employed people and how fast they leave their jobs annually. Some statistics on the turnover rates by countries include:
11. As of July 2021, 11.6 million UK jobs were saved through the government's job retention scheme.
There are some promising employee retention statistics in the UK for 2021. The UK job retention scheme secured 11.6 million jobs from 1.3 million employers during the employment crisis. The project covered 80% of the employees’ monthly income, going up to 2,500 British pounds per month.
12. 77% of Canadian employees who left their employers did so because of better job opportunities.
Facts from employee retention statistics in Canada reveal that many of those who switch jobs do so voluntarily, confident of a better job elsewhere. What amounts to a better opportunity varies from one person to the next, but it often covers a more pleasant work environment, increased pay, or more flexible working hours. In 2018, Canada’s average voluntary turnover rate was 12%, 7% for involuntary turnovers, and 1% for retirement.
13. 49% of US employees have considered leaving their current company.
From employee morale statistics figures in the US, it is clear that several people have considered leaving their current employers at least once. Considering that, according to SHRM’s survey, about a quarter of US employees dread going to work and feel like they cannot talk about work-related issues, it’s no surprise that many people consider leaving.
14. By 2023, 35% of US employees will quit their jobs yearly.
Studies on employee retention show in the next few years, employees in the United States will continue to leave their employers for better opportunities. Reasons for this could be anything from wanting better pay to better working hours or even just a simpler and shorter commute. Either way, by 2023, more than a third of US employees will voluntarily leave their jobs at least once each year.
15. Losing a US worker costs employers an estimated $15,000.
Turnover is expensive, and with the costs only going up, employers must do all they can to avoid losing their staff. Consider the time it takes to recruit and train a new employee, the resources it would consume, and how it would affect productivity, and you’ll start getting the picture about how much it will cost to lose an employee.
16. 96% of US employees need work flexibility, but only 47% get it from their employers.
Statistics on employee retention in the US show people who have workplace flexibility are likely to last longer than those who don’t. A survey conducted by the Harvard Business Review in 2018 disclosed that 96% of US professionals feel like they need flexibility (better working hours, less commute, remote work, etc.) at work, but only 47% feel that their companies are meeting those needs.
17. With the current trends, voluntary turnover costs stand to reach $800 billion by 2023.
Statistics show that the cost of voluntary turnover is quite expensive. The price keeps rising and has doubled substantially since 2010. If left unchecked, companies will continue to bleed resources, which will affect their profit and growth in the future.
Employee Retention and Well-being Statistics
Human resource officers can agree that staff members’ wellness and happiness play a crucial role in retention. Here are some vital statistics:
18. 12 out of 100 people in the US leave their jobs due to a lack of work-life balance.
Figures from work-life balance statistics show not having the right work-life balance is the second most significant reason people switch jobs. Work Institute data shows a decline in schedule flexibility since 2017, and since 2013 it has gone up by 20%. This means that people find it hard to balance their work and private lives, and most employers cannot find a solution that adequately addresses the issue.
19. 77% of US companies focus on employee experience for increased retention.
Employee retention statistics from 2020 show that companies are changing. Many have started creating experiences that enrich the work-life of their staff. One of the fundamental ways companies have achieved this is by collecting feedback and implementing their employees’ suggestions. Considering that more and more people leave their companies each year, the results are still pending, but it’s good to see company executives at least trying to change this for the better.
20. Nine in 100 US employees leave their jobs because of inadequate compensation or benefits.
Retention of employees is one of the main problems that US employers face these days. Approximately 10% of the workforce cites a lack of compensation as the primary reason they leave their jobs, and a slightly lower percentage do so due to inadequate benefits. Asides from public recognition, people desire to receive compensation and benefits for the extra miles they go in carrying out their function. For example, a staff who works overtime deserves to get paid for it.
21. Around 8% of Americans leave their job due to well-being issues.
Employee retention and well-being statistics paint a clear picture: employees are not robots, and if they are overworked, it might adversely affect their health. Most companies who ignore this experience high turnover rates. While pregnancy and family-related issues are trending down, more and more people are leaving jobs due to personal health problems.
22. 23% of US employees will likely stay with their employers if they have a good onboarding experience.
Onboarding is the act or process of integrating a new employee into an organization. Employee retention rate will be higher if workers have their roles and responsibilities explained properly. As an employer, make it a priority to ensure your hires have smooth sailing and let them know whether or not they meet your expectations.
23. 8% of US workers leave their jobs because the job characteristics do not suit them.
Employee retention statistics would be a lot better if employees knew exactly what they were signing after an interview. Job characteristics can mean many things: task variety, lack of empowerment, inadequate training, and task or role overload are typical reasons people quit. When employers give their staff work outside of what was stated during the interview process, it makes the employees far more likely to resign.
24. Five out of 100 people in the US quit their jobs because of the work environment.
One of the factors that affect employment retention rates is an unsafe and toxic work environment. People will not tolerate a problematic workplace when they know they can find better working conditions elsewhere.
25. 12% of US employees are less likely to stay in an organization where the company culture doesn’t suit them.
When employees don’t feel connected to the people they work with or can’t align themselves with their company’s goals, they are more likely to leave. Organizations can prevent this by having company-sponsored team-building activities, but also recognizing that not everyone enjoys such activities and not forcing employee fraternization on people.
26. Employee retention factors like strong management transparency lead to 30% better employee retention.
Shady office management reduces trust and loyalty among the employees. People want to know what happens in the company they work for, and they will likely stay if they are kept up to date with changing trends and office policies, instead of being kept out of the loop.
27. 38% of the US work turnover rate in 2018 came from employees who quit during their first year of employment.
Over one-third of new hires leave their jobs in the space of a year or less. Because of the high costs of recruiting and training a new employee, first-year employees have the most expensive average employee turnover rates. To curb this, implement effective onboarding, orientation, and training for your employees.
28. US businesses that positively engage their employees have 59% less turnover.
Employment engagement statistics show that when employers keep their employees engaged, people are excited to show up at work and have fewer thoughts of seeking employment elsewhere. Engaging your staff means less work absenteeism and an increase in productivity.
Employee retention rate statistics show that it pays more to keep employees than to lose and have to replace them. Companies must become better employers and treat those who work for them as part of a team, and not just people filling in set roles until the next person comes along.
You can achieve this by creating retention-focused programs and an inclusive work culture. Carry every member of your staff along, encourage team spirit, and appreciate those that go over and beyond to get the job done, but don’t normalize overtime and other unhealthy work practices.