What are the retention statistics for 2023?

Amidst the backdrop of the "Great Resignation" phenomenon, 2023 witnessed a notable turnover rate of 3.8%. This figure reflects a substantial portion of the workforce choosing to remain with their current employers, offering a positive outlook for businesses seeking stability and continuity.

What is the usual percentage for retention?

Generally speaking, a good retention rate ranges 90 percent or higher. Industries with the highest retention rates include government, finance, insurance, and education, while the lowest rates can be seen in the hotel, retail, and food industries.

What is the cost of turnover in 2023?

The cost of replacing an individual employee can range from 0.5 to 2 times the employee's annual salary. Replacing C-level positions can cost up to 213% of their yearly salary. Indirect costs (due to impact on productivity and morale) account for two-thirds of the total cost.

What is the average employee retention rate?

A retention rate of 90% or higher is considered to be a good retention rate, meaning organizations should strive for an average employee turnover rate of 10% or less.

What are the percentages of retention?

(Number of employees at the end of a set time period / the number of employees at the start of a set time period) x 100 = retention rate percentage.

Statistical Rethinking 2023 - 04 - Categories & Curves

What is the 40 20 10 retention rule?

On average, a 40-20-10 profile is considered good retention ‒ 40% retention on Day 1, 20% retention on Day 7, and 10% retention on Day 30. But depending on the genre of the game, good retention rates may vary. According to Gameanalytics, the average Day 1 retention rate is 25%.

What is a good employee retention metric?

Employee satisfaction rate is one of the top retention metrics, and for a good reason. Your employee net promoter score (eNPS) can tell you a lot about your organization's current landscape, how satisfied people feel with your company, and what percentage of staff may be at risk of leaving.

What industry has the highest turnover rate?

Which industries have the lowest employee retention rate? As of March 2022, the U.S. Bureau of Labor Statistics reported that the industries with the highest turnover rates included accommodation and food services: 86.3%, leisure and hospitality: 84.9%, retail trade: 64.6% and professional and business services: 64.2%.

What job has the highest turnover rate?

What Occupations Have The Highest Turnover Rate? The highest turnover rates occur in low-paying jobs that require little education or experience. These jobs include retail salespersons, fast-food workers, and home health aides.

Why is turnover so high in 2023?

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.

What is the average turnover rate in the US?

The U.S. Average Annual Turnover Rate Is 47 Percent

The total separations rate of U.S. jobs is 47.2 percent as of 2021, according to the U.S. Bureau of Labor Statistics. This estimate represents all turnover — voluntary and involuntary.

Does it cost 33% of an employee's salary to replace them?

While experts estimate that it costs 33% of an employee's salary to replace them, in reality it can cost 3x or even 4x the departing employee's salary to hire a replacement. In addition, employee turnover often leads to a loss of institutional knowledge and can negatively impact your company's culture.

What is a bad employee retention rate?

As a general rule, employee retention rates of 90 percent or higher are considered good and a company should aim for a turnover rate of 10% or less.

Is 30% retention rate good?

Industry Benchmarks

The average 30-day rate broken down by industry ranges from 27% to 43%, but for higher performing apps, that range is 32% to 66%. See more details here. While the average hovers around 20% 90-day retention, it's best to aim for 25% or higher depending on your industry.

What is the monthly turnover rate?

The formula for calculating turnover on a monthly basis is figured by taking the number of separations during a month divided by the average number of employees on the payroll . Multiply the result by 100 and the resulting figure is the monthly turnover rate.

What company has the lowest turnover rate?

What companies have the lowest employee turnover? Ans. Companies with the lowest employee turnover often include those known for strong workplace cultures, competitive benefits, and opportunities for career growth. Some examples of such companies include Google, Apple, and Microsoft.

What job has the highest turnover rate in the United States?

The industry with the highest turnover rate, according to LinkedIn data, is professional services — a sector that includes companies like the Big Four accounting firms, as well as business and IT consulting organizations.

What is Amazon's turnover rate?

Before the pandemic, Amazon was losing about 3% of its workforce weekly, or 150% annually. By contrast the annual average turnover in transportation, warehousing and utilities was 49% in 2021 and in retail it was 64.6%, less than half of Amazon's turnover.

What is HR KPI retention rate?

Which KPI measures staff retention? Employee retention rate is one metric that measures staff retention. Retention rate is calculated by taking the average number of employees minus the number who left and divide that the average number of employees again. The flip-side metric of retention rate is turnover rate.

What is the number one predictor of employee retention?

Strongest Predictors of Retention

Of the 16 aspects of job satisfaction and well-being the survey measured, the three that have the most impact on retention are: Recognition for Contributions. Being Valued by Others at Work. Having a Sense of Belonging.

What is the difference between turnover and retention?

Employee retention describes an organization's ability to keep (i.e., retain) its talent. Increasing retention directly impacts a company's business performance and success. Meanwhile, employee turnover refers to the number of employees who leave an organization over a certain time period.

What companies have a bad retention rate?

Apple, Amazon, and Meta are among the companies with the worst employee retention, with median tenures of 1.7, 1.8, and 1.8 years, respectively. Apple's return-to-office policy and Meta's layoffs have contributed to their poor employee retention rates.

What is Netflix retention rate?

I Help Founders and PMs Build Great Product… In 2023, Netflix dominates with 232.5 million subscribers and $8.16 billion in Q1 revenue. Their six-month retention rate? An impressive 72%.

What companies are doing to retain employees?