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Developing your annual hiring strategy can feel like a giant guessing game, in which you hope to outpace your company’s employee turnover rate. Although turnover is a necessary part of doing business, when is your turnover rate too high?
The results of the 2023 US and Canada Turnover surveys let you benchmark your employee attrition against other organizations in your market or industry. We make it easier for you to stay up-to-date on the quickly changing and unpredictable work environment and to make sure your employee retention strategy is complete with full-picture turnover statistics.
Our surveys provide turnover rates by:
The 2023 US Mercer Turnover Survey and Canada Turnover Survey provide valuable insights into which jobs and industries show the highest turnover and explore how companies plan to respond with recruitment and internal growth plans.
It’s your key to identifying high employee turnover and planning for future talent needs.
Let’s dig in!
In a sign of changing employment trends, less than half (42.6%) of US businesses plan to hire new staff this year. This is indicative of the inflation and other economic challenges businesses have faced over the past year. Examining the employee turnover rate can help businesses adjust their workforce as necessary to compensate for these economic challenges.
In planning for high turnover numbers, most companies intend to hire new staff but don’t plan to increase head count. Only 13% of organizations intend to increase their overall head count, while 10% plan to reduce it.
The average turnover rate among US businesses between 2022 and 2023 was 17.3%, which is down from 24.7% reported in the 2022 survey.
The average rate of voluntary turnover due to employee resignation (17.3%) was much higher than the rate of involuntary turnover (4.8%), where the company terminated the employee.
The Retail and Wholesale industry saw the highest average voluntary turnover percentage, at 32.9%. The Chemicals and Energy sectors showed some of the lowest average rates of voluntary turnover, at 11.7% and 12.3%, respectively. These sectors typically include jobs that require more education and receive better pay, which may contribute to improved job satisfaction and longevity.
Position within the company also influences the turnover rates. Heads of organizations and executives across all industries have significantly lower voluntary turnover rates than entry-level positions.
The same trends are true for involuntary turnover, as executive and management roles have lower involuntary turnover rates than white- and blue-collar positions.
This survey included responses from between 200 and 400 businesses in each category. The following is a glimpse at the average voluntary turnover rates by position:
These findings all suggest offering promotions might reduce turnover rates, as that allows entry-level workers to move up, discouraging quitting.
With high turnover rates, businesses must find new hires to fill the roles. However, 55.5% of organizations (based on 2,102 respondents) say they have difficulty hiring or retaining employees. Of those organizations, the following industries have the highest percentage of difficulty:
Publicly traded and privately owned organizations tend to find new hires easier than state-owned enterprises and nonprofits.
When good employees leave your business, it can cost you a lot of money. Finding and hiring new employees is always more expensive than keeping the employees you have.
Many workers who voluntarily leave are making significant career development changes, like moving to a more flexible work arrangement or leaving the workforce altogether. Employee morale, employee engagement, and company culture all play a role in your organization’s employee turnover rate.
One way to address your employee turnover is through employee listening. Employee listening is exactly what it sounds like — listening to what your employees say about their wants and needs. For example, if you have a large population of employees who need more flexibility in their schedules to tend to their children or aging parents, consider working with them to offer more flexibility, such as remote work days or flex time.
Mercer offers numerous employee listening tools you can use to learn more about your employees and their needs. Consider options like the following:
Resources like these can help you get a deeper understanding of what could be driving employee turnover and what your employees need to stay.
The full survey takes you deeper into these categories, providing more specific information on turnover rates experienced by companies this past year. Use our reliable data and real results instead of guesswork to build your hiring strategy.
For more in-depth data on this essential topic, consult the US Mercer Turnover Survey or the Canada Mercer Turnover Survey.
Ready to get the in-depth data you need for your business? Find our products online or call us at 866-605-1031.