7 Employee Retention Stats Every Leader Should Know
So you’ve hired a new employee again. Congrats! Now’s a good time to think about ways to keep that employee, well, your employee. Check out these stats related to employee retention. For us, they reinforce the importance of being strategic and thoughtful during the recruiting process.
47% of HR leaders said employee turnover and retention is their top challenge. (In our experience, we’d put that number a little higher, to be honest.)
Employees who are “engaged and thriving” are 59% less likely to move on to a different job in the next year.
There’s an art to keeping employees engaged and thriving. Things like recognition and management that takes employee input seriously can go a long way.
Cost to replace a highly trained employee can exceed 150% of their annual salary.
Studies put this number all over the place. A conservative estimate is 6-9 months of that employee’s salary. Time and money are lost repeating the recruiting process, training and managing the new employee, and the time necessary for the employee to reach full potential. Less tangible is the cost that morale could take if employees question why someone left.
44% of employees say they’d consider leaving for a raise of 20% or less.
Let’s be honest with ourselves: People primarily work for money. So how do we sweeten the pot to keep employees motivated to stay, particularly younger ones? According to one study, many millennials are more likely to remain with an employer if it offered long-term job security, flexible hours, or good mentorship opportunities. Bringing us to ….
83% of workers who participated in a mentoring program said their experience was a motivating factor for staying with that employer.
Employee happiness is 23.3% more related to relationships with their coworkers than with their supervisors.
This one is tough to predict, but if you can, invite your best candidates to hang out in the office and talk to people after the interview. You never know what sort of connections are made in those moments.
56% of Americans said their health insurance coverage is the main reason they’ve stayed at their current job.
If you found these stats interesting, check out our blog on effective recruiting, Trouble with recruiting? Employ some different tactics.