We’ve spent the last two years hearing endless dialogue about The Great Resignation and the trouble low employee retention is causing in companies of all sizes. What, though, actually makes this period of time worthy of being called The Great Resignation?
While most of us have watched dozens of employees walk out the doors since the beginning of the pandemic, the whole story is a bit more elusive. Are workers quitting because of remote work? A lack of engagement? Poor management? Or is The Great Resignation a multi-headed beast that wreaks havoc differently in each workplace?
Whatever the cause of your employee retention woes are, we’ve probably got a statistic below that reflects the issues plaguing your organization. Here are the numbers driving The Great Resignation in 2022:
•An American record 4.54 million workers quit their jobs in March 2022, per the U.S. Bureau of Labor Statistics. The US has been averaging over 4 million quits a month since mid-2020.
•More than 40% of U.S. workers are either actively seeking a new job or plan on doing so soon.
•Only 9% of employees looking for a new role will change positions within the same company, meaning 91% of disenfranchised workers are trying to leave their company entirely.
•The average turnover rate from 2021-22 was 47.2%
•The industry with the highest turnover was Leisure and Hospitality at 85%, while the lowest was Government at 18%.
Who is leaving?
•In a global survey of more than 16,000 people by Ernst and Young, it was discovered that the roles most likely to change jobs were people leaders, caregivers, and those in finance/technology roles.
•Those most likely to stay included Baby Boomers, employees with more than 10 years of tenure, and individuals working in government and education. Millennials, on the other hand, are more than twice as likely to quit as Baby Boomers.
•The Stop The Exit report, which analyzed over 9 million anonymized employee records from 4,000+ organizations globally, revealed that turnover rates are the highest among employees aged 30–45.
•Perhaps surprisingly, working parents are more likely to make a job switch than employees without kids, with 62% of working dads and 60% of working moms saying they’re open to changing jobs, compared to 56% of female employees and 51% of male employees without children.
•People of color tend to resign more frequently: 63% of Asian employees, 66% of Hispanic employees, and 64% of Black employees indicated an interest in finding new opportunities against 56% of white employees.
When are they leaving?
•Employees in their first year on the job have a 33% turnover rate.
•Organizations with engaging onboarding programs retained 91% of their new hires through their first year, representing a 24% jump.
•A great employee onboarding process can improve retention by as much as 82%.
•On the other hand, inadequate employee training accounts for 40% of resignations.
•In totality, 75% of US staffers have no intention of staying at their jobs for more than five years.
Why are they leaving?
•Work Institute found in a 2020 study that about 75% of employee turnover was preventable. In that group, 18% of avoidable turnover was career-related, and 10% was work-life balance related.
•Similarly, Achievers Workforce Institute’s 2021 Engagement and Retention Report found that the top reasons employees would stay in their current job include work-life balance (23%) and recognition (21%).
•71% of employees who reported being unhappy with their current role’s level of flexibility are open to seeking a new job in the next year.
•42% of employees seeking a new job didn’t feel that their company was maximizing or correctly utilizing their abilities and skills.
•Burnt-out employees are 2.6 times more likely to be actively seeking new positions and are 63% more likely to take a sick day.
•More than a third of employees report that they’ve been encouraged to quit their job by a coworker.
•Gallup found in 2020 that teams with low engagement levels see employee turnover rates 18%–43% higher than teams with high engagement levels.
•They also discovered that companies that focus on their culture achieve up to 29% higher profit, 19% higher sales, and a 72% lower turnover rate.
•52% of employees who voluntarily left a company reported that their leadership or organization could have done something to change their mind about leaving.
•24% of workers who left jobs during the pandemic cited the ability to work remotely as a main factor, a Conference Board survey found.
•When employees are dissatisfied with their careers, 20% of them will resign. •Conversely, though, 19% of employees planning to leave would stay if offered additional benefits.
•An IBM report found that professionals who felt that their current organization wasn’t helping their career goals were an enormous 12 times as likely to consider a job switch than employees who did feel secure in their career growth at their company.
•The 2021 Workplace Learning Report determined that employees at companies that more commonly hire or promote from within typically stay about double the time as employees at companies with low internal mobility.
•93% of American employees would remain at a company longer if they felt like it gave them career opportunities.
•Per a LinkedIn Learning Report, 94% of respondents would prefer to remain with a company who invested in staff development such as career coaching, training, and education opportunities.
What can we do?
HelloTeam is employee retention software that’s proven to beat turnover and boost retention for workplaces of all types, no matter the origin of your retention painpoints. Our system has been engineered to perfectly fit today’s mix of remote, hybrid, and in-office companies without sacrificing any engagement or productivity. We truly bring you employee retention software that’s actually built for the employee.
Our unique combination of connected goals, diverse integrations, manager-employee one-on-ones, learning, engagement surveys with instant people analytics, and real-time peer recognition empowers every employee to connect with and contribute to their culture wherever they work. This drives employee retention while making HR teams and managers more productive, giving your organization the competitive edge it needs.
The HelloTeam difference brings all these features to a social workplace intranet, which other similar platforms don’t support. Filling a workplace intranet with tools like surveys that employees want to use sets us apart from competitors that offer tools like timesheets that employees are forced to use. Your team should be happy to use their HR software. They will be with HelloTeam.With 4.8 stars out of 5 on G2.com and over 100 5-star reviews to read through, HelloTeam is a proven industry leader that can transform your workplace from the ground up. If you want to improve retention, build culture, and engage your workforce, you can schedule a demo with HelloTeam right here and finish your shopping for good!