7 surprising statistics on Employee retention

First, let’s remember the definition of employee retention once again. In the simplest terms Employee retention is the ability for a company to retain, or keep employees working at a job. It’s closely linked to employee experience since a positive experience is associated with higher Intent to Stay. Employee retention strategies are the actions organizations take to keep employees happy, engaged, and productive at work.

As a general rule, employee retention rates of 90 percent or higher are considered good and a company should aim for a turnover rate of 10% or less.

So what is the difference between retention rate and turnover rate? Retention rate is the percentage of a company’s employees that remain with them for a set period of time. Turnover rate is measuring the percentage of employees that leave in a given period. 

Check out the stats!

  1. 73% of respondents are having trouble attracting employees — nearly 3 times the number (26%) reported in the previous year. Nearly the same number of employers (70%) expect the problem to remain in 2022. (2021 Talent Attraction and Retention Survey- Willis Towers Watson)
  2. 61% of respondents are having difficulty retaining employees and believe the problem will linger into 2022 — compared to only 15% in the previous year. (2021 Talent Attraction and Retention Survey- Willis Towers Watson)
  3. According to a study, 87% of human resources leaders have placed their employee retention attempts as a #1 priority for the next few years. The same study noted as a bottom line that 20% of them find it difficult to maintain focus on this priority as there are other factors that take away their attention and budgets. (Kronos)
  4. Gallup research found employees who are “engaged and thriving” are 59% less likely to look for a job with a different organization in the next 12 months. 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.
  5. On average, a higher retention rate can maximize a company’s profits up to four times. (Source)
  6. Strong management transparency leads to 30% better employee retention. (TinyPulse)
  7. Employee retention stats confirm that 27% of millennials resign because their goals are not in alignment with their employer’s, while 13% point to career development or lack of such as a key factor for switching employers. (Teamstage.io)
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