Employee retention is the ability for a company to retain, or keep employees working at a job.
It’s a problem all over the world, but we will be focusing on employee turnover statistics in the United States in 2022 for this resource.
There may be a couple of global employee turnover statistics in the article, but this is overall for the United States.
If you think employee retention or turnover is mostly about keeping employees happy, the following data will show you it’s much more than just that.
The main goal of any business should be to keep their best talent with them.
So, what is employee retention and employee turnover? In simple terms, it’s a company’s ability to keep its employees.
While these figures can be expressed with statistical data, the concept of employee retention has everything to do with the effort a company puts into keeping their employees.
Employee turnover is what happens when employee retention measures fail.
In America, about one-third of new employees quit their jobs after around 6 months, according to employee turnover statistics.
That makes this a bigger problem than one might think. It’s an issue that definitely requires some attention by employers.
Every month, about 3 to 4.5 million people quit their jobs in America, according to the JOLTS (Job Opening and Labor Turnover Survey).
One such survey discovered that 94% would stay with their employer if they invested in long-term training and learning.
In America, employee turnover has been on the rise for a few years now.
Employers aren’t just losing skilled workers, but they are also coping with new hires, training, and replacing their lost workers.
So, let’s see what the next few employee turnover statistics reveal about this matter.
Key Employee Turnover Statistics 2022
- In June 2021, there were 10.1 million job openings in the U.S.
- Employee turnover accounts for 18% of workforce losses on average every year.
- Roughly 60% to 70% of all employee turnover is voluntary.
- Roughly 3 million American employees voluntarily quit their jobs every month.
- The U.S. Bureau of Labor Statistics shows that the health and education industries had a 44.8% turnover rate in 2020.
- The South experienced employee turnovers at 52.2% in 2021.
- 92% of the world’s employers say that they will prioritize employee experience in the next three years.
- A 2017 poll showed that 70% of employees don’t feel connected or engaged in the workplace.
- Money is the primary reason people quit their jobs.
- 40% of all office workers are planning to quit due to employers’ response to COVID-19.
General Employee Turnover Statistics 2022
1. In June 2021, There Were 10.1 Million Job Openings in The U.S..
This figure represents a massive addition of 590,000 new jobs that opened up between May and June 2021.
The number of jobs jumped by 6.5% in just one month. Since the same time the previous year, almost 4 million new jobs have opened up.
So, while there are open jobs, why are people not flocking to them? There are many reasons that we can address in another article.
For now, just know that there are job openings, but without an employee retention plan, even those who start working are likely to quit.
2. Employee Turnover Accounts for 18% of Workforce Losses on Average Every Year.
About 12% of this 18% in employee turnover is voluntary, and another 6% is involuntary due to terminations, layoffs, etc.
Any kind of employee turnover costs the company money. Especially since this happens so often.
More employee turnover statistics will show that the lack of an effective employee retention program can cost a company millions in turnover rates.
That includes things like starting over with the hiring process, interviewing, onboarding, training, etc.
3. Roughly 60% to 70% of All Employee Turnover Is Voluntary.
A direct outcome of refusing to make improvements for employee retention is waving goodbye to your most skilled workers.
Employee turnover statistics show that you don’t have to let your best workers go.
You can make clear and concise changes that help you boost employee retention, especially within your top performing employees.
Ask for their feedback and start creating a plan of action to prevent the high costs of employee turnover.
4. Nearly 18% of Employees Quit Their Jobs Within the First Month of Employment.
According to employee turnover statistics from Employee Cycle, 33% of people quit their jobs within their first 90 days.
Another 17.42% quit in their first 30 days, and another 14.48% quit within their first six months of employment.
With more than 10 million open jobs in America right now, why are people quitting in their first month, 3 months, and six months of starting a new job? One of the factors involved working conditions.
There are also factors like company culture, management (or mismanagement), and lack of training and promotion opportunities.
Employee Turnover Statistics by Industry 2022
Now that you know some general employee turnover statistics, we will talk about how this problem impacts various industries.
Let’s see what the data tells us.
5. The Highest Employee Turnover Rate Occurs in The Food Service Industry, Which Is at 130.7%.
Alongside the food service industry, construction (69.6%), retail sales (69.7%, and arts and entertainment(129.3%) industries have high turnover rates.
Sectors with the lowest rates of employee turnover include insurance and finance (25.1%) and government (24.2%) sectors.
We can surely all understand that the food service industry is very challenging and the pay rates are low as servers live off their tips.
That accounts for some of the turnover in that industry.
The retail and sales industries are also challenging and not the highest paying jobs in America.
Pay is not the only reason for employee turnover, but we know it’s a factor.
6. The U.S. Bureau of Labor Statistics Shows that The Health and Education Industries Had a 44.8% Turnover Rate in 2020.
This figure was at least 10% lower before COVID-19 impacted the world.
So, you can see that the education and health sectors have been negatively impacted since the pandemic is terms of employee turnover and retention.
There could be a variety of reasons for this that are financially, personally, and mentally motivated.
Even the rental and real estate sectors were hit with a 49.3% turnover rate in 2020. By 2021, that figure fell to 38.9%.
7. In 2021, The Local and State Sectors Had the Lowest Rate of Turnover, at 18%.
In 2020, that percentage was 22.6%, but since then, these sectors have returned to pre-pandemic figures.
It’s hard to know if other sectors will return to their pre-pandemic employee turnover rates, but some industries have already gotten close.
Local, state, and Federal jobs alike are essentially back to their regular employee turnover rates since the pandemic.
Since government jobs are usually pretty solid employment, this should come as no surprise.
Employee Turnover Statistics by Region 2022
Now, we will address regional employee turnover statistics. This section will essentially cover the four corners of the United States by northern, southern, western, and eastern regions.
You will see that the Northeast has the current lowest employee turnover rates and the South has the highest, according to employee turnover statistics from 2021.
8. In 2021, The Midwest Had an Overall Employee Turnover Rate of 47.7% Across Industries.
In 2020, the Midwest had the highest employee turnover rate, at 58.3%. That figure shrunk by 2021 to 47.7%, which is 10.6% lower than in 2020.
The Midwest is nearly back to pre-pandemic turnover rates, which were 42.9% in 2017 and 45% in 2018.
Which states are included in the Midwest dynamic? Illinois, Indiana, Michigan, Kansas, Iowa, Missouri, Minnesota, Nebraska, Ohio, North Dakota, South Dakota, and Wisconsin.
These are the states where the employee turnover rate was at 47.7% in 2021.
9. Employee Turnover in The Northeast Was at 38.7% in 2021.
Basically, the Northeast reverted back to normal employee turnover rates in 2021, at 38.7%.
In 2020, that percentage was much larger, at 53%, which was the highest over the 5-year period between 2017 and 2021.
Before the pandemic, the Northeast saw turnover rates between 37% and 38.3%.
The states included in the Northeast region impacted by employee turnovers are Maine, Massachusetts, Connecticut, New Hampshire, New York, New Jersey, Vermont, Pennsylvania, and Rhode Island.
11. The South Experienced Employee Turnovers at 52.2% in 2021.
The southern states have some of the highest overall percentages in employee turnover rates. The 52.2% for 2021, is pretty average for the South.
In 2020, when employee turnover rates were the highest in the South, the rates were at 57.2%.
Previously, the range was between 46.9% and 48.8%. The southern states are not quite back to pre-pandemic turnover rates. They are still about 4% to 6% higher.
The southern states where employee turnover rates are still quite high include Alabama, Arkansas, DC, Delaware, Florida, Kentucky, Tennessee, Maryland, Mississippi, North Carolina, South Carolina, Georgia, Louisiana, Texas, West Virginia, Virginia, and Oklahoma.
12. Western States Experienced 45.4% Employee Turnover Rates in 2021.
The Western region of the United States has almost returned to pre-pandemic turnover rates in employment.
In 2017, turnover rates were at 42%; in 2021, they were at 45.4%. That is a huge drop from 2020, when turnover rates were at 57.7%.
The West includes Alaska, Arizona, California, Idaho, Hawaii, Colorado, New Mexico, Montana, Idaho, Nevada, Oregon, Wyoming, Washington, and Utah.
These states have an overall 45.4% employee turnover rate collectively.
The Impact of Employee Turnover 2022
We have just a few brief employee turnover statistics that show the impact of turnover in America. Let’s see where these facts take us.
13. 92% of The World’s Employers Say that They Will Prioritize Employee Experience in The Next Three Years.
This data comes from a global survey of employers, but it relates to how it will affect the United States as well.
Of the surveyed employers, 92%, or 9 out of 10 employers, said improving the employee experience is something they will be prioritizing in the coming three years and beyond.
You have to wonder if this can help with employee turnover and retention in just three years. It remains to be seen.
Their claim is to help reduce stress, give employees more choices, survey their employees, and explore ways to improve the employee work experience.
14. It Takes an Average of 6 to 9 Months Worth of Employees’ Salaries to Replace a Salaried Employee.
Employee turnover statistics show that it requires an average of 6 to 9 months worth of salary to replace one salaried employee.
So, for a salaried employee making $60,000 per year, recruiting and training costs come to between $30,000 and $45,000 per employee.
Imagine what the costs for multiple employee turnovers are for companies.
This data is from The Society for Human Resource Management (SHRM). There are many reasons that employees leave their jobs.
It can range from their spouse getting a job in another state to going back to school or finding a better job.
15. Businesses that Employ 100 People Making an Average of $50,000 per Year Could Cost a Company Between $660,000 to $2.6 Million Each Year Just in Employee Replacement Costs.
To put the high costs of employee replacement into perspective, a Gallup poll showed that in businesses with 100 people making an average annual salary of $50,000 can cost between $660,000 to $2.6 million to replace due to turnovers.
Also, employee turnover statistics show the harsh reality facing companies and how turnover rates cost them a lot of money.
Hopefully, by focusing on improving employee experiences, they can reduce costs and retain employees.
Predictions and Trends in Employee Turnover Statistics 2022
We are reaching the end of our employee turnover statistics part of this article.
The next few facts and figures will be about the future of employee turnover in America.
16. In 2020, Reports of High Job Satisfaction, at 56.%, Were Recorded.
Even in the wake of the pandemic, massive layoffs, the “Great Resignation”, and the economic crisis, the overall job satisfaction rate accounted for 56.9% in 2020.
That’s the highest that percentage has been in 20 years.
While there were some issues that impacted this percentage, like economic stress and the recession, employee satisfaction and employee engagement was up.
As a matter of fact, employee engagement increased between November 2019 (53.2%) and November 2020 (54.3%).
17. A 2017 Gallup Poll Showed that 70% of Employees Don’t Feel Connected or Engaged in The Workplace.
That means only 30% of employees feel connected and engaged at their jobs.
Will prioritizing employee experience help to improve this figure over the next three years? We can only hope.
In 2022, 32% of employees report being engaged, which is slightly above 2017’s figure, but still in decline from 2020 and 2021.
Moreover, Gallup shows that in early 2022, 17% of employees report being actively disengaged, which is a percentage point above 2021.
While there was a small increase in employee engagement between 2017 and 2019, there was another decrease from 36% in 2020 to 34% in 2021.
18. Companies with Solid Onboarding Processes Often Retain 91% of Their First-Year Employees.
Whether companies want to admit it or not, the onboarding processes are not flawless.
Only about 12% of employees think their employer had a good onboarding process.
This is the kind of feedback that companies need to be paying attention to for improving employee retention.
When a good, but not perfect, onboarding process is present, companies can usually retain 91% of their first-year employees.
That is significant, and not a percentage that should be ignored.
19. The U.S. Bureau of Labor Statistics (BLS) Shows an Increase in Employee Turnover Rates Between 2016 and 2020.
The United States employee turnover rate went from 42.6% in 2016 to 57.3% by 2020.
What happened to that record-breaking low figure in 2016? It’s unsure if the pandemic had a direct effect on this figure, but it likely did between 2019 and 2020. At least that’s how it appears.
This percentage even had a big impact on the best employers in America.
We are all hoping that this figure will revert back to its lower numbers in the coming years.
20. Gallup Reported that In Companies with A High Employee Turnover Rate, Improving Employee Engagement Reached a 24% Reduction in Turnover.
Not only that, but for businesses that already had a low employee turnover rate, improvements made in employee engagement resulted in 59% lower turnovers.
By improving employee engagement, these businesses also reduced their percentages of absenteeism by 41%.
Engaged employees also resulted in productivity increases of 17% in these same businesses.
Perhaps improving the employee experience can make things better for employee turnover statistics in the coming years.
21. Money Is the Primary Reason People Quit Their Jobs.
According to employee turnover statistics, money is the primary motivator in people quitting their jobs.
While this is not the only reason people quit, it’s a major factor in employee turnovers.
The Paychex survey participants included Baby Boomers, Generation X, and Millennials.
Lack of benefits and caring for their employees also ranked among these respondents at various levels in generations.
22. 4.4 Million People Reportedly Quit Their Jobs in September 2021.
This represents a record high number of those who quit their jobs. The media considers this all part of the “Great Resignation” in America.
As mentioned earlier, this employee turnover rate is leaving over 10 million jobs open without workers to fill them.
This 4.4 million people who quit their jobs in September 2021 represents 164,000 over the month of August in resignations.
The industries most impacted were recreation, arts, and entertainment.
23. 40% of All Office Workers Are Planning to Quit Due to Employers’ Response to COVID-19.
That’s touching the edge of nearly 50% of office workers. With over 10 million open jobs in America, how can this even be a problem?
Two out of every five office employees said that they are unhappy with how the company they work for handled things during and after the pandemic.
The survey shows that 56% still have unanswered questions about their position, and 52% feel that they didn’t get enough training.
It seems that companies, though not purposefully, either overreacted, or didn’t react enough to the pandemic and their employees.
Is there a lack of good contingency and emergency planning? Will that result in better planning in the future?
24. 58% of Surveyed Employees in 2018 Say They Would Consider Changing Jobs for Higher Pay Transparency.
If you look at Gen Z respondents, you will see that percentage jump up to 70%. Pay raises aren’t the only factor in getting and keeping a job.
Pay transparency seems to top the list of reasons people are willing to change jobs.
Younger workers also want a workplace where there are people from all walks of life included and are treated fairly.
Companies are beginning to see how important that pay transparency is, but also how important equal pay is.
25. Roughly 3 Million American Employees Voluntarily Quit Their Jobs Every Month.
The U.S. Bureau of Labor Statistics shows that about 3 million, perhaps closer to 4 million people quit their jobs each month in America.
About 2% of the whole American workforce is experiencing turnovers, according to employee turnover statistics.
Employee retention has become a serious problem among American companies.
It’s also costing these companies money, time, and training expenses at least.
Next, we have some frequently asked questions to address for your consideration about employee turnover statistics.
What Are the Five Types of Employee Turnover?
There are several types of employee turnover, but we will cover the top five main types to answer this question.
1. Involuntary Turnover: This is when an employee leaves due to being laid off, fired, or poor performance.
2. Voluntary Turnover: When an employee quits their job or retires, this is a voluntary turnover situation.
3. Healthy Turnover: This is when it’s in the company’s and the employee’s best interest to leave the company.
4. Avoidable Turnover: This is when an employee quits a job that the employee could have prevented.
5. Regrettable Turnover: When a company loses a high-performing employee, that could have otherwise been retained.
Who Is Most Often Responsible for Employee Turnover?
In companies where there is a high turnover rate, employee turnover statistics show that it’s commonly due to the company’s management staff.
It could be one person, or the whole management team.
Hostile work environment, which relates to poor management, is one of the most mentioned reasons for those who quit their jobs.
This responsibility can fall upon human resources or senior management.
How Long Is an Employee on The Job Before They Are Totally Productive?
Under regular circumstances, it takes roughly eight months for an employee to reach their full potential and productivity in a role. This is eight months from their hire.
Considering that we have learned that nearly 33% of employees leave their jobs within the first six months, who knows if they would reach their full potential in their initial job role?
More than one-quarter of all employees are seeking their next job opportunity before they even begin to become totally productive in their current roles.
If you own a business, you need to print this list and try to keep it in mind during the hiring process and while you have employees.
After all, the goal should be to retain employees, not lose them, because somehow you dropped the ball.
Give them solid onboarding and training for starters. Follow up with further training for promotions and higher-level roles in your organization.
There are ways to plan how to improve employee satisfaction that will also help you keep your best employees longer.
This helps reduce employee turnover. Try giving your employees a survey and get some feedback.
Read their answers and see what you can do to make things in your company better for everyone.
Don’t forget to keep your employees engaged, and have a contingency and crisis plan in place in case of another pandemic or emergency situation.
Treat your employees with respect if you want respect in return. This can be done without coping with problem employees.
If you’re in a management role, be sure to pay attention to how your employees are responding to you.
Unless it’s on their end, you may be able to work with them in better ways to improve employee satisfaction.
Is your workplace good at employee retention? Do you work in a company where employee turnover is high?
Do you know why?
Have you ever quit a job in your first 30 days, 90 days, or 6 months? Would you change jobs if you found one with better pay transparency?
There you have it.
A full list of employee turnover statistics in 2022 that you need to know.