30+ Employee Retention Statistics You Need to Know

First and foremost, it is important to get a global perspective on the state of employee retention in recent years. Here are important numbers you need to know:

In 2022, they amounted to 12.4%. There seems to be a new trend of turnover rates increasing every year without fail, which means that action needs to be taken sooner rather than later!

As previously mentioned, turnover has been exponentially increasing in the past decade. This means that employee expectations have changed and that their employers have failed to meet or understand them.

Of course, this statistic could also highlight the fact that newer generations of workers are less likely to spend their entire professional lives in the same company. There are definitely several factors at play here, and we’ll dive into these aspects later on in this article!

As you can see, most employers are not optimistic about the future state of employee retention, as they are noticing ever increasing turnover rates and struggle to stem the tide of employee departures.

Despite these turnover issues, a vast majority of HR managers are ready to make retention strategies a top priority in their organization. This statistic makes sense, as most HR strategies focus on improving the work environment and are at least in part linked with an effort to motivate and retain talented employees.

Disengagement spans across many levels. Some employees are not actively engaged, others are completely disengaged. In any case, this statistic is alarming and showcases the importance of focusing on retention efforts in your company.

Of course, disengaged employees are most likely to leave your company or at least pursue opportunities elsewhere. Salary is simply no longer enough to ensure that your teams are happy and productive and will stay with you in the long run.

High performing employees are more inclined to search for other job opportunities, as they know that their skills can be coveted and appreciated by other employers. If they feel like they could get better work conditions, benefits and recognition elsewhere, it makes perfect sense that they would be on the lookout for opportunities on job search apps.

This statistic shows a shift from previous trends: a high number of workers are now comfortable with the idea of quitting without knowing what they are going to do next. This might be a sign of confidence in their own worth and skills or proof that they are ready to prioritize their well-being by leaving an organization where they are not thriving.

If your employees know that they could get a better paid, more qualified role elsewhere, it might be time to promote them to a higher position or give them a well-deserved raise. You can also stand out from competitors by creating an unmatched work environment and corporate culture that will help you attract and retain talent.

Despite the previous information we shared, this statistic shows that turnover can be avoided if employers focus their efforts and energy on understanding employee expectations and act accordingly.

Now that we have general information on employee retention, it is time to identify the main factors that influence talent to leave your company – or stay in the long run.

First impressions are crucial to ensure long-term retention: you only get one shot at showing the environment and culture you can offer to your new hire. Poor onboarding processes are often the root cause of early turnover.

Employees want to be heard and to shape their own work environment according to their expectations and values. Collecting employee feedback is a great first step, but you also need to create action plans based on the information and ideas that were shared.

If we said it once, we said it a hundred times: recognition should be at the forefront of your retention strategies. If high performing employees feel like their work is not appreciated, they will be more likely to search for other opportunities. Smaller contributions also need to be highlighted through recognition phrases, reward systems, and peer recognition.

In the past few years, workers have come to appreciate and expect flexible work conditions. Remote work has become an important part of many employees’ lives and has transformed the way we envision work-life balance and professional relationships. If you offer remote work possibilities while maintaining a cohesive corporate culture, you are more likely to attract talent and retain them.

Remote work and recognition are not the only aspects to take into account when setting up retention strategies. Employees also need to know that their manager trusts them, and that they can trust them in turn. Micromanagement and excessive work tracking are stifling and lead to unhealthy and unproductive professional relationships.

Engagement strategies are crucial, and they need to be regularly updated and improved according to employee feedback to remain relevant and appreciated by your teams. Identify motivation issues, ask your employees what they think, and let your imagination and strategic streak do the rest!

Engagement surveys are essential to take the pulse of your organization and act on employee feedback. You can also set up stay interviews to get valuable insights on workplace satisfaction and identify individuals who are at risk of leaving or losing motivation.

Employee retention strategies can differ depending on the demographics that shape your workforce. Here are interesting stats you might want to consider in your retention efforts:

Although this statistic completely makes sense from a strategic viewpoint, it also underlines the fact that millennial employees are less likely to feel a sense of belonging in their companies and are often open to new opportunities.

However, job security can only go so far: it also means that your employees are not necessarily staying because they feel like an integral part of your company or are highly engaged in their day-to-day work. If you have nothing else to offer to your teams, they can quickly lose motivation.

Younger generations of workers are looking for opportunities to learn and grow alongside their new employer. If you fail to provide these avenues for improvement, they might quickly leave your organization – or even never apply to the open position in the first place.

These numbers are very interesting, as they prove that salary is definitely not the most important aspect of employee retention and motivation. Most millennial workers are more interested in finding happiness and a sense of accomplishment in their work than they care about their payslip.

Millennials are often called the “job-hopping generation” for a reason, as they are often looking for better opportunities and are less attached to their current companies than previous generations of workers were. They are definitely a demographic that needs particular attention when it comes to retention efforts in all organizations.

By 2025, Gen Z will represent a quarter of the global workforce, so it is definitely time to start implementing HR strategies that take their expectations into account. It is interesting to note that future Gen Z turnover might be caused by a lack of alignment in values.

Gen Z workers want to work for employers who understand the current state of the world and are trying to make a positive impact where they can. Community engagement, social stances and ecological awareness are also important factors for younger generations of employees.

Need advice on how to improve employee retention rates in your companies? Here are some numbers that can guide your action plans, with bonus tips and tricks:

This statistic proves that a vast majority of companies need to improve their retention strategies to decrease turnover rates and make sure that they remain at healthy levels of attrition. All employers and HR departments should feel concerned by employee retention issues!

Employee well-being programs are often underestimated and overlooked, although they encourage talent to recommend their companies to job seekers and improve talent attraction. As we have previously mentioned, salary is not the most important factor, and health benefits and well-being initiatives are a priority for a large number of workers.

It comes as no surprise that effective onboarding processes should be at the center of your retention strategy. We have a lot of helpful resources on employee onboarding on our blog, and we encourage you to take a look at our article on onboarding stats every employer should know to get useful tips and tricks!

The decrease in turnover rates is an integral part of the ROI of HR software solutions. Picture this: you are a newly hired employee in the onboarding phase of his career journey at their new company. When your first day comes, you realize that nothing is automatized, and that you will have to send multiple emails to complete the necessary administrative tasks, all the while discovering your new position and trying to digest a consequential wave of information.

This is only one example of how lack of technology tools can negatively impact employee satisfaction and, ultimately, long-term retention. HR digital transformation should definitely be at the top of your priority list in 2024.

On top of reduced turnover costs, implementing the right HR solutions mitigates loss of knowledge in your organization, ensures efficient business operations, and supports smooth transitions when your employees do leave the company.

Sources:

• Imercer.com
• WorkInstitute.com
• Mckinsey.com
• Bonusly.com
• Gallup.com
• CNBC.com
• ApolloTechnical.com
• Hbr.org
• TeamStage.io
• VantageCircle.com
• Flair.hr