Ever wonder why some roles seem to have a revolving door while others retain staff like glue? That's the mystery we’re unraveling with this guide on high turnover rates by job.
Understanding employee turnover rates is one thing; knowing how these numbers break down across roles, states, and types of separation unveils additional nuggets of wisdom: wisdom that creates space for better talent and retention strategies.
Zooming in on turnover rates per job lets your team know which departments may be thriving and which ones need a bit of TLC. So read on to start making better-informed decisions for those who matter most to your business—your staff.
Breakdown of Turnover Rates by Job Role
Let’s begin by walking through prominent high and low turnover rates by job roles. We shed light on the possible whys behind these rates and what they could mean for businesses like yours. Take note of any trends or patterns along the way. They might ring a bell for your team.
High-Turnover-Rate Roles
According to the 2022 Praisidio Employee Turnover Rates Benchmark Data, the four highest turnover rates are found in the following job roles:
- Software engineer (non-security): 15.13%
- Marketing: 13.58%
- Sales: 12.46%
- Product: 11.36%
Patterns/Trends & Potential Reasons for High Turnover
It’s worth noting that engineering and sales are roles in high demand. And since they are most sought after, this might mean individuals in these jobs have more opportunities to leave for greener pastures, thereby increasing turnover.
A study conducted by the Pragmatic Institute notes a few factors that have driven product professionals (product managers to chief product officers) out of their jobs:
- Lack of alignment on product vision with the business
- Poor leadership/micromanagement
- Unrealistic expectations
While marketing agencies score pretty well in benefits and job security, they score low in areas like making an impact and finding a culture that fits their personalities.
For example, in a study conducted by 4A’s and LinkedIn:
- The primary reason for departure from their previous agency, cited by 54% of surveyed agency workers, was the dearth of advancement opportunities. This emerged as the leading cause of resignation among respondents.
- 50% of respondents wanted more challenging tasks.
- 46% expressed dissatisfaction with senior management's leadership.
- 45% felt discontented with the rewards and recognition for their efforts, as well as with the benefits provided.
Low-Turnover-Rate Roles
Praisidio reports the following jobs have among the lowest turnover rates:
- Legal: 4.87%
- Accounting: 5.41%
- Office support: 5.74%
- IT services: 6.06%
Patterns/Trends & Potential Reasons for Low Turnover
When you compare high- and low-turnover roles, you’ll notice that high-turnover jobs require more interpersonal skills and interactions to produce a final outcome. This process may entail several creative touchpoints that involve strategy and emotions.
Interestingly, these low-turnover jobs follow a more rigid institutional system that entails adherence to regulations and workflow processes. This “set” system tends to offer more stability and predictability than the high-turnover jobs above.
Not to mention, the U.S. Bureau of Labor Statistics (BLS) notes business and financial occupations “are projected to grow faster than the average for all occupations.”
Impact of Low & High Turnover
Let’s take a step back for a moment and look at the bigger picture.
Impact of High Turnover
Dealing with employees joining and leaving doesn’t simply hurt team productivity and performance; it also costs your business in several ways.
Imagine this: someone you work with decides to call it quits (ugh, not again). But it's not just a bummer on a personal level (we'll miss you, Kevin!), it's also a big financial hit for the company. Replacing someone can cost them at least half their annual salary. Yikes.
And that's not all. When people see colleagues coming and going, it can bring down the whole team's mood. People start to think, "Is this place even a good fit? Should I be looking elsewhere too?"
But there’s more. Remember all that knowledge Kevin had about that super-important project? When he leaves, there will likely be a halt in productivity. The team has to scramble to figure things out, which means delays and more time spent on the project. And what about the lack of continuity for Kevin’s clients? Everyone ends up stressed and burned out. The struggle to maintain a healthy work-life balance gets real.
Impact of Low Turnover
Low turnover is a good indicator of satisfied employees. With fewer employees leaving, operations and communication are more stable, allowing for consistent workflow and productivity.
Talented Kevin stays in his role, elevating work output and continuing the productivity streak. Not to mention, he gets to stick around to train his fellow peers, instilling his knowledge and skills in them. Everyone earns some learning and development opportunities, a good work-life balance, and client satisfaction.
Let’s not forget about costs as well. Hiring managers need not worry about onboarding expenses, interviewing, training new hires, and more. Employees can focus on producing quality output for the organization, contributing to profitability rather than incurring losses.
3 Examples of Job Roles & Turnover Strategies
We’ve picked out a few examples of job roles to shed further light on how these roles are impacted by turnover. And more importantly, examples of strategies you can use to mitigate turnover.
1. Registered Nurses
In urban areas with high demand for healthcare services, such as New York City (the epicenter for the COVID-19 pandemic, for instance), registered nurses may experience higher turnover rates due to factors such as workload, burnout, and competition among hospitals for qualified nursing staff.
Strategies to Help Mitigate Turnover
- Address shift lengths: This is noted as one of the top reasons for high turnover. Most organizations use the 12-hour shifts. Offering a more flexible schedule with eight-hour shifts can provide nurses with better work-life balance, mitigating burnout.
- Provide mentorship opportunities: Another roadblock to nurse turnover is peer-to-peer relationships. New nurses often struggle to adjust to a new facility. Mentorship programs can be the bridge they need, fostering connections with experienced peers.
2. Software Engineers
In tech hubs like Palo Alto and San Francisco, software engineers may experience higher turnover rates due to abundant job opportunities, competitive salaries, and access to innovative companies. These offer attractive perks and career development prospects.
Strategies to Help Mitigate Turnover
- Offer competitive compensation packages: Take the time to regularly benchmark compensation against industry standards. When engineers are jumping ship to bluer waters, it’s vital to offer the best of the best to keep top talent hanging around.
- Explore career advancement opportunities: Future-proof your engineering team by providing career advancement opportunities. Explore this by initiating regular conversations on what growth means to each individual. Doing so injects talent strategies with the authenticity and fulfillment they merit.
3. Construction Project Managers
States experiencing rapid population growth and construction booms, such as Texas, construction project managers may experience higher turnover rates due to labor shortages, increased competition for skilled workers, and demand for construction projects.
Strategies to Help Mitigate Turnover
- Drive a versatile staffing solution: You’ve got a project that requires 20 team members. This is immediately followed by another job that requires double the manpower. If you live in a city with rapid growth, it’s worth having a versatile staffing solution. That way, project managers can anticipate and adjust to changes in labor needs.
Have a standard onboarding process: While a personalized approach might seem like a great strategy, in a dynamic and changing environment like construction, standardization is key. When all project managers are on the same page, they understand what to expect and how to work with others.
Starting Tips to Mitigate Turnover at Your Organization
We encourage you to think about your workforce. How might turnover rates differ based on job roles or departments? What action steps can you take to develop a workforce that genuinely wants to stay?
1. Improve Company Culture
Reach out to employees whose roles fall into the high-turnover categories. Using surveys, groups, or one-on-one discussions, take time to understand their perceptions of organizational culture. What cultural elements align with their values?
Examples of culture shifts may include more transparency between staff and leadership, work-life balance, and professional development opportunities.
2. Analyze Compensation and Benefits
Analyze compensation and benefits across different job roles within the organization. Identify any disparities in pay or benefits that may contribute to turnover, particularly in roles with high turnover rates.
HR Predictions notes, “[...] equitable and fair pay is among the greatest drivers of employee satisfaction.”
3. Ensure Equitable Treatment
Ensure policies and practices are applied consistently and fairly across all job roles. This is critical to creating an inclusive, productive, and harmonious work environment.
Recognize and address systemic barriers, biases, and disparities that might impact employees’ experiences and opportunities.
4. Offer Better Recognition and Rewards
Meaningful recognition and rewards are essential to driving better productivity, inclusivity, and workplace culture. How you execute recognition and rewards is vital.
An effective program can boost engagement by two times and decrease turnover by 31%. To truly make a difference, you must go beyond traditional methods and provide reward options that resonate and connect with your workforce.
5. Offer Learning and Development Opportunities
Sixty-eight percent of employees say they'd stick around for the long haul if their company helped them develop new skills. And get this, 94% would at least hold out longer for new opportunities to grow.
The bottom line? People crave the chance to keep learning and take on new challenges. They want to feel like they're getting better, not stuck in a rut. So find out what learning and development looks like for your employees. Chances are, they’ll have a lot of ideas.
6. Improve Onboarding
The steps that follow once an employee is hired matter. In fact, 69% of team members stay at an organization for at least three years if their onboarding experience was a good one.
Here are some tips to ensure a smooth onboarding:
- Clearly communicate their roles and responsibilities. Provide them with examples of what success looks like in their jobs.
- Make the first day stress-free by providing details on equipment, where orientation will take place (e.g. physical address or Zoom link), and parking details (if in-person).
- Assign each new hire with a buddy to help them get settled into their team.
7. Prioritize Work-Life Balance
Employees want to be trusted to take care of themselves and their loved ones the way they want to. Not providing this trust only adds more stress and dissatisfaction to their roles. Forty-nine percent of employees state the lack of work-life boundaries led them to quit.
Offer flexibility and mental health support by:
- Let employees choose when and where they work
- Offer resources for mental and physical wellness
- Encourage the use of a generous PTO policy
Make Data-Driven Decisions with Awardco
Awardco is on a mission to help your team mitigate turnover. If you haven’t already checked out our series, we encourage you to bookmark the following supplementary resources:
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