3 Surprising Hiring Facts That Can Help You Reduce Turnover

Turnover will likely always be a concern for employers.

However, turnover trends are showing improvement– a thing that is bringing sighs of relief nationwide. 

According to a Mercer Turnover Survey, the 2024 turnover rate was 13.5% (excluding retirees, volunteers, and contractors), a marked decline from 2023 (17.3%) and 2022 (24.7%).

That being said, 13.5% is still costly overall, and some industries have it worse than others. According to the survey, the retail and wholesale industry in the U.S. has the highest turnover rate at just under 25%.

High turnover has several underlying causes. Some of these causes may be specific to an individual, some to an organization, and some to an industry. 

In a SHRM publication, HR professionals offered some insights, attributing their turnover to specific causes.

Here are some of the most common:

• Compensation
• Lack of development/advancement opportunities
• Workplace flexibility
• Poor leadership

While this list shouldn’t come as a surprise, something important is missing…

The Thing Many Hiring Managers Neglect to Consider

In reality, very few employees will be 100 percent honest about their reason for departure during their exit interview. This, in large part, is due to a desire to preserve the future reference value of their current employer. The majority of folks re-entering the job search portal don’t want to be seen as lazy or having a poor attitude– or simply don’t like confrontation. Here are some things your departing employee may be thinking but probably won’t say:

• “I really disliked this job.”
• “This ‘organization’ is very disorganized.”
• “Did my boss even know what my position was supposed to be?”
• “I felt under-trained and under-supported in my position.”
• “The workplace culture was not good.”
• “The harder I tried, the more I was expected to do without any increase in recognition or pay.”
• “I was willing to provide unique value, but my abilities were disregarded.”
• “None of my ‘higher-ups’ listened to anything I had to say.”

The simple truth is we have much to consider when endeavoring to improve turnover trends further. It isn’t typically as simple as paying employees more.

At Peopletrail, one of our goals is to help our valued partners reduce their turnover, and we have given much thought to turnover’s most elusive underlying causes. While we aim to combat turnover through background screening, there are many things that can be done. Here are a few facts that may lead to a more actionable understanding of our current turnover conundrum.

Workplace Turnover Statistics You Should Be Aware Of

Let’s hop right in.

Fact 1

According to moneyzine.com, 54 percent of workers have left a job due to management’s lack of understanding or empathy regarding their professional struggles.

This statistic outlines some areas where improvement can be made. While we recognize that the expectations of some employees may be unduly high, we suggest that every manager asks themself the following questions to gauge their empathy:

1. Is what I expect from employees commensurate with my expectations of myself?
2. Do employees have an opportunity to communicate their struggles constructively?
3. Have I taken due time to better understand common stresses and workloads?
4. (For hiring managers) During the hiring process, are the expectations and duties of each employee adequately explained?
5. (For hiring managers) Are we confident that expectations meet reality?

Fact 2

In a publication by Bulletin, we can uncover some important insights:

46 percent of job seekers cite company culture as a very important and influential factor in their job search.

Now, a valuable, secondary fact is that 91 percent of managers in the U.S. say that an employee’s alignment with company culture is at least as important as skills or experience.

So, what does this tell us?

Focusing on hiring individuals who can embrace (and thrive in) your current culture will likely lead to more continuity among your staff. The data points strongly to this conclusion.

This doesn’t mean your workplace culture shouldn’t continuously adapt and improve, but it does outline a valuable focal point for hiring managers. That being said, hiring managers must ask the following questions for these efforts to be productive:

1. What is our company culture?
2. Do I understand and embrace our company culture?
3. Am I hiring for me, or am I hiring for the company?
4. Have I considered how a new hire would fit in with the current staff?
5. Is the company culture perhaps due for a bit of a change?

Fact 3

According to a publication by Apollo Technical, employees who receive some kind of recognition are 63 percent more likely to stick with their current job for up to 6 months longer than they otherwise would have.

This is a staggering statistic.

If your employees are providing value and, at the very least, consistently meeting expectations…let them know it.

It’s surprising how far a small gesture of personalized recognition can go. A simple note, a little treat box, or a gift card can boost employee morale significantly, and such a gesture requires little time and resources.

If your organization has many thousands of employees, consider a formalized recognition program that recognizes liberally.

Takeaways

Turnover is complicated. Even though employees may say so, compensation isn’t always the first thing on their minds when they begin sending out their resumes. It is important to treat all the underlying causes of turnover, and if done diligently, your organization should see good results.

For more information on how background screening can help with your efforts to reduce turnover, feel free to reach out to us.