Employee turnover is a complex beast, with all sorts of factors at play. That’s why it’s only fair to study it through a multifaceted lens. With comprehensive data at your fingertips, you can stop the revolving door and retain top talent.
Here at Awardco, we’ve been digging deep into how things like industry, state, and gender and LGBTQ+ identity affect turnover rate. We’ve put together some awesome resources to help you understand what might be driving turnover at your company. More importantly, we’ve listed actionable solutions to amplify the employee experience and improve retention.
Add the resources below to your retention toolbox. After all, your workforce and business deserve the holistic attention required to drive long-term success and profitability.
Turnover by Industry
After a rollercoaster few years amid the pandemic, things seem to be settling down a bit. In 2023, voluntary quits declined to 44.5 million, down from a record-breaking 50 million in 2022.
But economic uncertainty and layoffs are still causing anxiety, and employee engagement remains low.
Certain industries are also prone to high turnover, no matter the economic conditions. Some of the top turnover rates across industries include:
- Construction: 54%
- Manufacturing: 37%
- Trade, transportation, and utilities: 49%
- Information: 32%
- Financial activities: 29%
It’s worth checking in and comparing industry averages to your current turnover rate. Doing so can help you determine how much to invest in improving your retention strategy. Because while turnover is a natural part of work life, too much of it hurts company culture and your bottom line.
Each time someone quits, the hiring and onboarding process can cost you up to two times that employee’s annual salary. The good news is, you can prevent many of these cases by providing a better employee experience.
- Support employee advancement
- Offer competitive compensation
- Create a culture of care
Turnover by State
Where your business and employees reside can provide valuable context for turnover patterns. The variations in turnover across states reflect differing social norms, costs of living, and industry specializations.
Knowing these numbers can help you:
- See how you stack up: Compare your employee turnover rate to the average in your state or even nationwide (especially if you have a remote team scattered across the country).
- Spot potential problems: If your turnover is higher than the state average, it might be a sign of something you can fix within the company.
- Tweak your recruiting game: High turnover in your state? You might need to adjust your recruitment strategies to attract and keep top talent. Remaining proactive is key.
Here’s a snapshot of monthly turnover rates across U.S. states:
Thanks to data from the Bureau of Labor Statistics (BLS), you can dive into the latest turnover trends and adjust your talent strategy accordingly with:
- Employee retention initiatives
- Recognition and reward programs
- Budget adjustments
- Remote/hybrid culture shifts
Turnover by Type of Separation
There are different types of turnover, also known as separations. The BLS defines separations as any removal of employees from a company’s payroll, including quits, layoffs, discharges, and retirements.
Separations can be voluntary or involuntary. Understanding both and their key contributing factors can help you figure out what’s driving people out the door and come up with smart ways to keep them in.
The BLS even dives deeper by offering metrics on:
- Total separation rates by state
- Total quit rates by state
- Total layoff and discharge rates by state
These numbers are nuggets of gold that shouldn’t go ignored. So, we’ve gathered all of the relevant statistics to start an honest discussion on topics like economic conditions, job market dynamics, and cost of living—all of which can influence separations.
We’ve also included some strategies to improve turnover by type of separation, including:
- Enhance employee engagement
- Give career development opportunities
- Offer competitive compensation and benefits
- Improve work-life balance
- Foster a positive workplace culture
Turnover by Job Role
Certain job roles have a higher average turnover rate than others, and the highest might not be what you think.
The 2023 Praisidio Employee Turnover Rates Benchmark Data notes the four highest turnover rates are found in the following office-based job roles:
- Software engineer (non-security): 15.13%
- Marketing: 13.58%
- Sales: 12.46%
- Product: 11.36%
Praisidio also reports the following roles have the lowest turnover rates:
- Legal: 4.87%
- Accounting: 5.41%
- Office support: 5.74%
- IT services: 6.06%
So why the stark difference? We’ve got a few thoughts along with starting tips to mitigate turnover at your organization in our guide on turnover by job role.
Evaluating turnover rates per job lets your team know which departments may be thriving and which ones need a bit of TLC. Start implementing targeted solutions and create a more positive workplace for those who matter most to your business—your staff.
- Improve company culture
- Analyze compensation and benefits
- Ensure equitable treatments
- Give better recognition and rewards
- Offer learning and development opportunities
- Improve onboarding
- Prioritize work-life balance
Turnover by Wage/Salary
Feeling valued at work includes getting paid fairly, and that’s a major factor when people decide to stay or go.
Harvard Business Review research found:
- Half of employers estimated turnover among low-wage workers was greater than 24% a year.
- Nearly a quarter of employers said turnover among low-wage workers was greater than 50%.
- 62% of employees said a promotion or higher pay would motivate them to stay in their current workplace.
This should come as no surprise. After all, getting paid competitively is a huge motivator for putting your best work forward. And why stay when the company across the road can pay you more?
Our data-backed guide on turnover by wage/salary dives deep into various statistics that shed light on the link between pay and turnover.
We also discuss ways organizations like yours can build a more equitable workplace through strategies such as:
- Competitive wages
- Upskilling
- Internal mobility
- Salary transparency
- Clear pay progression
- Targeted benefits programs
- Customized recognition and rewards
Turnover by Gender & LGBTQ+ Identity
Inclusivity and safety are vital pillars of a healthy and happy workforce. Unfortunately, not all companies embody these traits in the ways employees want them to.
Research highlights the significant role gender and LGBTQ+ identities play in staff turnover rates. Here’s a snippet:
- 34% of LGBT employees have quit a job because of treatment “by their employer based on their sexual orientation or gender identity.”
- Among LGBTQ+ employees, those who disclose their identities are less likely to depart their roles.
- “Women leaders are more than 1.5x as likely” (compared to men at the same occupational level) to have left a job to work for an employer “that was more committed to DEI [diversity, equity, and inclusion].”
And it doesn’t stop there—when talented folks from underrepresented groups keep leaving jobs, it has a ripple effect beyond the company. We’re talking about limited access to opportunities and systematic inequalities.
This speaks to the importance of inclusion and diversity in retention and shows the impact employers have in nurturing this kind of environment.
There are specific actions to take that help reduce turnover of employees based on gender and LGBTQ+ identities:
- Gather feedback
- Raise awareness on topics
- Acknowledge and listen
- Offer mentorship programs, affinity groups, career development initiatives, and benefits enhancement
- Leverage leadership
Turnover by Training & Education Level
Growth matters—so much so that almost everyone (about 94%) would stay at their organization longer if it provided opportunities to learn and grow.
There is a direct link between training and reduced turnover rates among employees:
- Employees often seek new opportunities when they feel their current roles lack challenge and growth. A study revealed that a staggering 83% of recent or soon-to-be resignations were driven by a perceived lack of professional development.
- The two main drivers of turnover among governmental public health professionals are low pay and lack of advancement opportunities. Offering more training and developmental opportunities can help manage these drivers.
- 90% of employers worry about retention and provide learning opportunities as their top strategy.
Lowering turnover rates via training opportunities requires getting five things dialed down:
- Defining what top talent means to your organization
- Investing in skills-based training
- Investing in your managers
- Aligning development objectives with the needs of employees
- Rewarding and recognizing accomplishments
Make Powerful Data-Driven Decisions with Awardco
Your team is the heart and soul of your business. When they’re happy and doing well, it shows up in the amazing work they do. And let’s be real, high turnover isn’t just a number—it’s a big clue that something’s off in how people feel about their jobs. Let’s figure out what that is and fix it!
Learn how rewards and recognition can boost employee satisfaction and aid your company’s retention efforts.
