How to Slow Down Voluntary Employee Turnover and Boost Engagement
A recent report has unearthed some compelling trends in employee turnover. When taken seriously (and I suggest we do), the impacts of these findings will have lasting implications for decades to come. The report, Revelations from Workforce Turnover. A Closer Look Through Predictive Analytics, was produced by ADP Research Institute. The ADP researchers used a sample size of 41,000 companies and 12.5 million employees to draw their conclusions. What they found was that employee turnover, particularly voluntary departures, costs companies significant money, productivity, and morale. Thus arises the need to curb turnover and address the factors that contribute to it.
Table of Contents hide
When does the most employee turnover occur?
When does the most employee turnover occur?We all expect a degree of turnover in our organizations. It will happen throughout the year with a degree of seasonality. Nothing new here. But the revelations from the report are quite staggering. Let’s break down turnover rates by the numbers.
“Most industries’ turnover rates reach their highest level in September, the same as the national average,” according to the report. “The rate of turnover for most industries reaches its lowest point in March. For manufacturing, that low point happens in January. Manufacturing also has the lowest turnover rate (3.4%) of all the industries observed and the difference between its highest and lowest points (1.3%) is the smallest of any of the industries. Compare this with the leisure and hospitality industry, where the proportion of part-time jobs is higher than for other industries. “Since part-time workforces tend to show less employee loyalty, this industry has the highest rate of turnover (9.1%) among all industries. The difference between the highest and lowest rates of turnover (5.6%) for leisure and hospitality is also the highest of the industries.”Now comes the kicker.
“Analysis reveals the average monthly turnover rate to be approximately 5%. About 60–70% of turnover in each industry is voluntary. And because it is initiated by the employee, voluntary turnover is more difficult to predict.”
3 main findings on employee turnoverWe can simplify the report’s key findings like this:
- Employee turnover is a reality
- There are industry variances
- Average monthly turnover is approximately 5%, 60% of which is voluntary