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!
- 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)
- 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)
- 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)
- 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.
- On average, a higher retention rate can maximize a company’s profits up to four times. (Source)
- Strong management transparency leads to 30% better employee retention. (TinyPulse)
- 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)