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HR professionals discussing employee retention and turnover statistics

Surprising Employee Turnover and Retention Statistics

Employees are every organization’s greatest asset. So understanding what aspects of workplace culture will make them want to stay with your company is important. In this blog, we share some interesting statistics about employee turnover and retention and offer tips for keeping your valuable talent.

1. Depending on job level, replacing an employee could cost up to 200% of their salary.

Replacing employees who decide to leave the organization has a cost. Searching for new talent requires an outlay of time and money for advertising, working with recruitment agencies, screening, interviewing, and hiring. There’s also the time it takes to get new hires up to speed, train them, and redistribute work amongst existing employees until you can get the new hire in place. It all adds up to a significant sum. In fact, Gallup estimates the replacement of leaders and managers costs around 200% of their salary, the replacement of professionals in technical roles is 80% of their salary, and frontline employees 40% of their salary. That’s why it makes good financial sense to invest in a solid employee retention strategy.

2. The old adage is still true: employees leave bad managers, not bad jobs.

It’s common for employees who are great at their jobs to get promoted to management positions. But this doesn’t mean they necessarily have the skills to manage people. In some cases, they may simply lack good management skills; in other situations, they just haven’t been trained to manage their team effectively. Either way, a bad manager can cause subordinates to leave the organization, increasing employee turnover.

In fact, according to LinkedIn’s 2024 Workforce Confidence survey, nearly seven out of 10 U.S. workers said they would quit their jobs over a bad manager. Millennials are the most likely to leave their jobs over bad management, with Gen-Zers right behind them.

One way to start building trust with employees while also growing managers’ skills is through 1:1 meetings. These allow you to discuss issues directly with employees and handle problems as they arise. One-on-ones also allow managers to connect with employees on a more personal level, which helps to increase engagement and reduce turnover.

3. Lack of respect loses employees.

The American Psychological Association’s 2023 Work in America Survey found 95% of respondents felt it is very (66%) or somewhat (29%) important to them to feel respected at work. A survey by MIT Sloan Management Review found that a toxic corporate culture was the strongest predictor of attrition and ten times more important than compensation in predicting turnover.

This is why it’s essential to continuously work to increase inclusion, respect, and belonging at work and ensure a culture of mutual trust between employees and supervisors.

4. Employees who don’t feel recognized for their work are almost 2x more likely to be job hunting.

According to TINYpulse data, 21.5% of employees who don’t feel recognized when they do great work have interviewed for a job in the last three months — compared to just 12.4% who do feel recognized. 

Employees seek validation for their work and are more likely to show loyalty when validated. Research has found that found that:

The bottom line: if you want great results, show employees you appreciate them.

5. Not taking action on feedback can create mistrust between employees and leadership.

Employee surveys are a great way to understand the needs of employees. But surveying employees without taking action on their feedback can backfire. Unfortunately, this is relatively common. Qualtrics reports that 60% of U.S. employees reported having a way to provide feedback about their employee experience. But only 30% said their feedback is acted upon by their employer. 

Regular and honest communication combined with action shows employees they’re valued, and it also allows you, as a leader, to recognize when adjustments might need to be made to improve employee retention. 

6. Clear onboarding processes make employees stay.

It shouldn’t come as a surprise, but when employees are onboarded well they’re more likely to stay with an organization. According to research, 69% of employees are more likely to stay with the company for at least three years after a great onboarding experience.

Further, a joint study from Kronos and the Human Capital Institute states that 76% of human resource leaders said their onboarding processes are underutilized, and another 24% didn’t even have an onboarding strategy to begin with. Gallup has also found that only 12% of employees strongly agree that their organization does a great job onboarding new employees.

What does a great onboarding experience look like? Ask managers to clearly lay out day-to-day responsibilities and expectations; give employees a chance to ask questions; establish connection with colleagues and a mentor and, most importantly, continue to follow up with the new employee for at least a year. 

7. Employee retention is a concern for all HR leaders, but getting results takes time.

According to a study, 87% of HR leaders say employee retention is a #1 priority for the next few years. The same Kronos study noted that 20% of HR leaders find it difficult to maintain focus on this priority when there are other factors competing for their attention and budget. Yet it’s important to stay the course. While employee retention efforts may not show immediately, they will pay off in time. Most importantly, investing in employee engagement now and retaining top performers in the future avoids costly turnover.

8. Career advancement retains talent.

TINYpulse findings reveal that employees who feel they’re progressing in their careers are 20% more likely to still be working at their companies in one year. On the other hand, a lack of advancement or skill-building can be a reason to leave. Make sure prospective and current employees understand the career path and the professional growth opportunities that will be available to them.

9. Millennials are 22x more likely to work for a company with a high trust culture.

Organizations that don’t focus on creating a culture of mutual trust may experience higher turnover. Younger generations, in particular, are less likely to leave their organizations if they feel trust and transparency is valued. This includes the ability to safely voice concerns and trust that they will not be criticized or punished for their views, otherwise known as psychological safety.

10. A sense of purpose has a sizable impact on employee retention.

Research from McKinsey found several benefits of having purpose at work. First, employees who live their purpose are more productive than those who don’t. They’re also more likely to be healthier and more resilient. Second, when employees “feel that their purpose is aligned with the organization’s purpose…the benefits expand to include stronger employee engagement, heightened loyalty, and a great willingness to recommend the company to others.”

Deloitte also found that purpose-driven companies tend to experience 40% higher levels of workforce retention than other organizations.

This research underscores the importance of aligning the team to your company’s specific mission and vision. Having a sense of purpose — the why behind the what — can help your employees feel like they’re doing something meaningful beyond just a job.

11. Work-life balance is a key retention factor.

Employees who rate their work-life balance highly are 10% more likely to stay at their company. In addition, a Kronos study in the Employee Engagement Series found 95% of HR leaders admit employee burnout is sabotaging workforce retention. 

Burnout is a serious issue that impacts people mentally, emotionally, and physically, leading to potentially serious health issues. Help employees achieve better work-life balance through flexible work arrangements, clear work expectations, open communication with managers and boundary-setting.

12. Professional growth is a leading priority.

Learning and development can make a significant impact on employee satisfaction and retention. A joint study between Amazon and Gallup found:

  • 57% of workers want to update their skills;
  • 48% would consider switching jobs to update their skills; and
  • 61% say upskilling opportunities are an important reason to stay at their job.

With 70% of US employees saying they’re likely to leave their current job and opt for another opportunity at a company that invests in the professional development of their employees, it’s in every employer’s best interest to do so.

13. Empowered employees are happy employees.

TINYpulse found that employees who feel in control of their careers are 20% more likely to stay in their roles. When employees know where their career is headed — and leadership supports their endeavors and provides guidance to make that a reality — loyalty will follow.

A Conference Board survey on job satisfaction revealed 51% of U.S. employees feel satisfied with their job. However, this means 49% aren’t satisfied. It’s up to organizations to talk to employees, find out why and act on the feedback.

14. Companies that offer remote work may see greater employee retention.

According to a survey by FlexJobs, 95% of workers want some form of remote work. Yet many employers now require workers to be in the office five days a week. The benefits of remote work—namely reduced commute time, better work-life balance, flexibility in work location and autonomy—can positively impact employee retention. The FlexJobs survey noted employees believe remote work positively impacts their mental (93%) and physical (90%) health; half of respondents say decreased stress levels is a major benefit.

Hybrid work seems to offer the best of both worlds. Take a pulse check of your employees to find out what type of arrangement is most suitable for your organization.

15. Employees would turn down a job if it didn’t align with their personal ethics.

No one wants to work for a company that engages in unethical behavior. This is especially important to members of Gen Z and millennials. A Deloitte survey found that nearly two in five (37% of Gen Zs and 36% of millennials) say they have rejected a job and/or assignment based on their personal ethics. For those in more senior positions the figure rises to nearly half. The study also found that “those who are satisfied with their employers’ societal and environmental impact, and their efforts to create a diverse and inclusive environment, are more likely to want to stay with their employer for more than five years.”

16. High employee engagement rates lead to reduced turnover.

An organization with high employee engagement sees many benefits, including better financial performance, a healthier work culture, and greater retention. In fact, Gallup found that organizations with high engagement experienced 21% less turnover (for high-turnover organizations) and 51% less turnover (for low-turnover organizations).

If you’re experiencing high turnover, it might be time to take a look at employee engagement. Annual engagement surveys and more frequent pulse surveys get to the heart of how employees feel about working in your organization and can help uncover areas that are detracting from the employee experience.

Reduce turnover by creating a better employee experience.

Whether you’re a C-level executive, HR professional, or middle manager, it’s critical to commit to creating a better employee experience to reduce turnover for your high-performing employees. 

When you actively seek to create a happy, healthy workplace, your team will be more likely to stick around for the long haul. In return, your business will see improved productivity and a positive organizational culture that generates returns for employees and shareholders alike.

How TINYpulse by WebMD Health Services can help you reduce turnover and retain employees.

TINYpulse provides you with an easy way to stay in constant connection with your employees by soliciting feedback regularly and in a digestible manner. You can then identify key culture drivers in your organization and make informed decisions to improve the employee experience. Book a demo to see how easy it is to collect and act on feedback in TINYpulse — boosting your retention stats along the way.

“This is one of the more tangible ways of how we’ve saved a considerable amount of money because we’ve been able to keep our people.”

— Nick Smarrelli, CEO at Gadellnet Consulting Services


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Andrea Herron
Written By

Andrea Herron

Vice President of HR

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