Have you ever wondered why employees decide to stay or leave their jobs? It’s a topic that’s more relevant today than ever, especially when considering the constantly changing employment landscape.
36+ Employee Retention Statistics Every HR and Manager Should Know
employee retention in today’s world is a complex puzzle. Each piece represents a different element that contributes to whether employees choose to stay or move on. From my experience in the workplace, it’s clear that employee retention strategies require nuance and an understanding of emerging trends.
Employee Retention at a Glance
Let’s start with some fast facts:
- 51% of employees globally are either watching for or actively seeking a new job.
- 53% believe now is a good time to find a new job.
- 62.5% of job separations in the US in early 2024 were voluntary resignations.
- Between 2013 and 2022, the global attrition rate nearly doubled, rising from 8.3% to almost 14%.
- 42% of COOs see frontline labor shortages as a significant challenge in 2024.
- 35% of CEOs expect labor shortages to disrupt their business strategy.
- 75% of employers are struggling to fill open roles in Q1 2024.
These figures tell a story of a mobile workforce. High voluntary resignations and low talent availability suggest people are in pursuit of better opportunities. Given that replacing an employee can cost up to 200% of their salary, retention becomes an urgent priority.
Employee Engagement
employee engagement is a decisive factor in retention:
- Engagement reduces turnover by 18% to 43%.
- 52% of employee departures could have been prevented with better management intervention.
- Engagement and culture are the leading reasons employees leave their jobs (41%), followed by wellbeing and work-life balance (28%).
- Only 28% of employees would recommend their organization as a great workplace.
- Employee engagement has rebounded from 2020 lows, hitting a record-high 23%, but most employees remain disengaged.
- Nearly six in ten employees fall into the category of ‘quiet quitting’.
- Low engagement costs the global economy $8.8 trillion, or 9% of global GDP.
- 62% of employees value greater work-life balance and personal wellbeing, while 58% prioritize roles with better income or benefits.
Despite encouraging improvements, nearly two-thirds of employees are still disengaged. Engagement is intricately linked to retention. A meaningful connection to the company’s culture and purpose is pivotal, especially in an increasingly remote work environment.
Wellbeing at Work
The statistics speak volumes about employee wellbeing:
- 44% of employees worldwide experienced significant stress the previous day.
- 46% of Gen Zs and 45% of Millennials report burnout from their workload.
- 28% left their jobs due to poor wellbeing and work-life balance, overshadowing the 16% who left for higher pay and 12% for a better manager.
- 78% of UK employees would consider quitting due to high stress.
- 14% of global employees struggle to pay bills every month.
- 10% in OECD countries work 50+ hours weekly.
- Employee engagement impacts stress levels 3.8 times more than work location.
High workplace stress and its effect on job decisions mean prioritizing health and wellbeing is crucial. Addressing stress symptoms alone isn’t enough. The root causes—overwork, financial strain, uneven workload distribution, or performance pressure—must be identified and mitigated.
Future Trends in Employee Retention
Looking ahead, there are critical insights we should consider:
- 44% of workers’ skills will undergo disruptions in the next five years.
- Over 85% of organizations acknowledge the impact of new technologies on transformation.
- One-third of employees and 45% of CEOs believe their company won’t be viable without reinvention.
- 53% of employees state their job requires specialized training (49% in 2022), and those who don’t get it face greater financial hardships.
The world of work is evolving rapidly. To keep employees engaged and motivated, companies must focus on personalized development, training, wellbeing, and recognition now more than ever.
Insights from Employee Retention Statistics
Now, let’s break down the big insights from these statistics:
Insight 1: Invest in Employee Development
Companies prioritizing learning and development see 57% higher retention. Interestingly, 41% of employees who quit cited a lack of career development opportunities. According to LinkedIn, 94% of employees are more loyal to organizations that invest in their development. This brings to light that strategic investment in employee development programs pays off by enhancing retention.
Insight 2: Embrace Technological Changes
While 44% of workers’ skills will be disrupted, 86% of COOs are increasing investments in tech. 31% of employees believe AI will boost their productivity and efficiency. Leaders need to navigate these technological shifts by establishing safe usage protocols, sourcing the right tools, and encouraging experimentation.
Insight 3: Take Employee Wellbeing Seriously
The proportion of workers with leftover money at month’s end dropped to 38% this year. Meanwhile, 17% struggle to meet monthly bills, and 21% admit to working multiple jobs. This financial strain, coupled with overwork, can backfire on productivity. Though not the sole answer, fair and equitable pay remains vital.
How to Measure Employee Retention in Your Organization
Understanding what keeps employees with your organization is no easy feat. It’s not a one-size-fits-all scenario. Identifying your employee retention profile is crucial. What do people like and dislike? What motivates or frustrates them?
Time Doctor offers a centralized hub of real-time workday data, providing end-to-end insights and customizable reports. With this transparent data, you can devise effective retention strategies and ensure your organization remains ahead.
By focusing on employee-centric strategies, organizations can better anticipate trends and foster a resilient, engaged workforce. It’s not just about keeping employees—it’s about nurturing a workplace where they want to stay and grow. These insights and statistics make it clear that it’s time for HR and management to rethink traditional approaches and ensure they lead with empathy and personalization.
