14 Surprising Employee Retention Statistics You Need to Know

When it comes to jobs and companies, people come and go, right???

Employee retention statistics can help understand what matters to employees, what makes them quit jobs, and how employers can attract & convince them to stay, measures how much a company cares and is willing to put in the effort to keep its employees from jumping ship.??

Welcoming new people to the organization is fun, but losing trusted & valuable employees is a real bummer.??

In the current economy, one of the most important factors is employee retention. When an employee leaves, it's not only a loss in productivity, but it can also affect morale among the remaining team members.

Thus, retention is a key priority for almost every organization. To help employers make this crucial decision, it is crucial to look into employee retention statistics:?

Keeping track of employee retention statistics can save companies a great deal of time and money. Not only does it give a pulse of employee retention, but also highlights potential areas for improvement in the workplace.??

Turnover is a major issue for organizations and keeping tabs on this statistic is essential for avoiding unnecessary costs. Employee turnover costs organizations thousands of dollars each year.??

With that in mind, let’s take a look at 14 surprising eye-opening retention statistics and how to avoid losing valuable team members.?

1. A standardized onboarding process experiences 50% greater productivity??

New hires want to become valued members of the team and that’s where the onboarding process comes in. Great onboarding programs help employees familiarize themselves with the company's culture, vision, and values.??

Introduce a system where coworkers can guide new hires to guide them through their initial days in the workplace. Ask the right questions to ensure everything is clear and keep engagement levels high throughout the entire work experience.?

2. 32% of employees left the job within 3 months due to company culture???

Organizations that provide an ill-fitting culture can see high turnover. Nobody wants to stay in a work environment where they’re feeling pressured into doing things that they don’t want.?

Build and maintain a collaborative corporate culture, treat employees like professionals, and prove to them you trust them to do jobs that were hired to do.?

Managers are to be given proper training to know how to handle and put the right practices in place. Train managers and give them resources and support to achieve a communication-friendly environment. Employees are less likely to leave if employers maintain trust and transparency.?

3. 67% of job seekers consider workplace Diversity, Equity, & Inclusion?

Workplace DE&I impact employee retention. 3 in 5 workers experience workplace discrimination. It’s no wonder people prefer to work in an environment where diversity, equity, and inclusion are supported.?

While building a diverse team, ensure to remove unconscious bias so that everyone feels like their voice is heard & respected. Offer the same opportunities to all say from equal pay to the decision-making process.?

4. Employee happiness is 23.3% more correlated with co-workers?

Team members work and spend their time together. Colleagues have an incredible influence on company culture and peer retention which shows that whom you work with is becoming more important.?

5. 76% of workers want the on-job training?

Newly hired people need training that will help them to start their new role with confidence. Unless that happens, chances are high that they will leave within 3-6 months.??

6. 22% of employees left the company for professional development?

Lack of advancement is morally deflating. 22% of employees will be forced to leave an organization to advance their careers.??

Invest in employees' professional development by helping them with necessary resources, you are helping them to upskill and prove you care about them.??

When employers encourage employees to take on new projects, it will give them the passion to take up new projects and the confidence to get the work done.?

7. 35% of workers say they will quit if they don’t get a raise.?

The pay is certainly not everything but seems to be pretty important. It’s up to employers to decide what’s more profitable - raising their income or dealing with the costs of low retention.??

Employees get paid for the job they’re doing. If you aren’t compensating adequately, they might leave. If they are getting better offers elsewhere it can be tempting to jump to another position so they can afford to live better.?

Have one-on-one meetings, conduct surveys, and have a competitive compensation and benefit system.

8. 46% of workers stay as they have flexible working hours?

Employees feel flexible working hours have improved their work-life balance and mental well-being and helped them grow in their careers. Companies have adopted workplace policies that give employees control over how they work and where they work.

Encourage employees to align their goals and help them to pursue a healthy work-life balance.?

9. 77% of employers focus on employee experience to increase retention?

A great employee experience yields great rewards. Employee Experience [EX] is what an employee observes, feels, and interacts with. It will help you to analyze the workplace like what and all improvements are needed. It shows that you do care about employees' opinions.?

Over two-thirds say companies are focused and invest in EX in hopes of getting employees to stay longer and be more productive. Bottom line EX is a worthwhile investment.??

10. 79% of employees quit their job citing “lack of appreciation”??

When three out of four employees don’t receive praise even after spending considerable time, they resign voluntarily, and no wonder they seek employment elsewhere.??

Recognition can go a long way and it will keep staff on board. Employers seek validation for the work done by them and are more likely to show loyalty when validated.?

When employers recognize employees for their efforts and help in aligning goals will make them stay, become loyal, feel appreciated, and be motivated to work harder the next time. Employees whose employers consistently acknowledge them for the work done are five times more likely to stay at the company.?

11. An average employee’s departure cost 33% of their annual salary?

Losing the best employee can break down team morale. Replacing employees with a hefty price tag given the cost of advertising, screening, interviewing, hiring, and training reaches half of one’s annual salary. When an employee leaves the company, they take with them knowledge, training, skills, and experience.

Even when a new replacement is hired, it takes time and training for that employee to be fully productive.??

What can you do? Train managers and leaders to have frequent conversations or schedule one-to-one with employees to understand their needs, challenges, frustrations, goals, and plans.??

Team retention is cost-effective and it has an added benefit, says boosts morale, increases engagement, and enhances productivity and employee engagement.?

12. 78% of employees quitting could have been prevented by the employer?

Employee turnover is preventable. How so???

First, understand why employees are leaving their jobs. Top reasons: -??

Career Development - 20%?

Growth & Development - 20%?

Work-life Balance - 12%?

Management Behavior - 12%?

Work Environment - 11%?

Job Roles - 10%?

Employee Well-Being - 10%?

Compensation & Benefits - 5%?

To ensure employees are fulfilled and secure at work, communicate openly, be supportive, and encourage them to be honest. When they come up with issues and concerns, follow through.?

A culture of trust will be a long way in the eyes of retention.

13. The company’s profits are maximized up to 4x with a higher retention rate??

Employee departures can harm company culture. When a coworker walks out the door, people notice and some may even start wondering if they should start looking for new opportunities.??

Employees who stay with the company for a longer duration have better performance and knowledge of company processes.

14. Employee recognition programs can reduce the turnover rate by 31%?

To retain employees, the best method is by adopting modern employee recognition programs. When employers implement employee recognition and rewards platforms that enrich company culture.??

If you’re interested to know more about employee retention, check out our platform where we will show Rytfit.ai helps you to spot & attract top talent, and engage & retain your employees.?

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