8 Employee Retention Statistics Employers Cannot Ignore

Employee retention is a hot topic for companies of all sizes. However, replacing an employee can be expensive, and the time and resources required to find and onboard a new employee can be daunting.

To reduce the amount of turnover in your workforce, it’s essential to understand the factors that influence employee retention.

In this blog post, we’ll explore eight employee retention statistics that employers cannot ignore. Let’s get started!

Employee Retention: Why Is It Important?

Employee retention is essential for companies since it allows them to maintain a stable workforce, leading to higher productivity and lower costs. As 2022 draws to a close, keeping employees longer becomes crucial because it allows businesses to perform at the highest levels.

Additionally, employee retention plays a vital role in fostering a better company culture and reducing the training required for new hires. Ultimately, retaining employees benefits both the company and the employees themselves.

If you want to deepen your knowledge about employee retention, we suggest you watch this video.

8 Employee Retention Statistics You Should Know

Here are eight employee retention statistics you should think about right now.

#1. Effective onboarding increases retention levels by 82%

According to Jen Dewar, onboarding initiatives can boost employee retention by 82% by the end of 2022. What is the connection between these concepts? 

Onboarding is the process of integrating a new employee into an organization. It includes introducing the new employee to the company’s culture and values, helping them learn their job duties, and providing training and support. The desired outcome of successful onboarding is satisfied and content employees who are unlikely to job-hop.

#2. Remote work incentives employee retention by 82%

Companies nurture employee retention by permitting employees to work remotely in stimulating environments. For instance, Mieke van der Merwe explains that employee turnover can be prevented by promoting a better work-life balance, a goal that can be achievable through remote work. 

In this regard, it would be helpful if business owners consider how flexibility matters in the workplace.

#3. Companies that focus on employee experience increase retention by 77%

Employers are starting to focus more on the employee experience to improve employee retention. The idea behind this shift is that if employers can improve their employees’ work lives, they will be less likely to leave.

There are several ways employers can focus on the employee experience. Some companies offer flexible work arrangements, while others provide opportunities for employees to learn and grow. Others still create a positive company culture that makes employees feel appreciated and valued.

In 2022, a Vantage Circle report affirmed that 77% of the companies in the US developed initiatives related directly to employees to boost retention.

#4. Unethical behavior makes 79% of employees quit their job.

According to this same report, 79% of employees would leave their job if there is no action against unethical actions such as mobbing or sexual misconduct.

Taking measures against workplace violence and working on conflict resolution can help enhance employee retention. Workplace violence can take many forms, from physical assaults to threats and verbal abuse.

It can be very damaging to both employees and businesses, and it’s important to take steps to prevent it.

Some ways to prevent workplace violence include creating a safe workplace environment, having policies prohibiting harassment and violence, and training employees on how to deal with difficult situations. In addition, it would be convenient to promote female leadership and proper remote team management.

Conflict resolution is also important in the workplace. When disagreements arise, it’s crucial to have a way to resolve them peacefully. Some methods for conflict resolution include mediation, arbitration, and negotiation.

If small business owners, HR specialists, and executives take measures against workplace violence and work on conflict resolution, they will be more likely to retain employees.

If you want to learn more about how to prevent violence in the workplace, watch this video.

#5. Business owners admit that employee burnout is sabotaging retention by 93%.

In 2022, it was revealed that burnout was the primary cause of poor workforce retention.

“Employee burnout is often given as a reason for high attrition rates. Prolonged stress, anxiety, and uncertainty can take a serious toll on employees’ mental health, leaving them fatigued and disengaged at work,” says Van der Merwe.

Likewise, in a report, McKinsey Institute affirms that 49 of its respondents felt fatigued and burned out.

#6. 8 of 10 Employees will look for another job if they have a terrible day at work.

The Vantage Circle report affirms that eight out of ten employees will tend to find another job if they have a terrible day at work.

If somebody has a terrible day at work, they might want to find a new job. This is because they don’t want to feel that way every day. Employers can try to stop this by ensuring a good work environment and helping employees learn and grow.

This is how companies can elevate employee morale and enhance retention.

#7. Fostering careers makes 50% of employees stay.

This report also claims that 70% of its respondents would leave a company for better development and learning. This information illustrates that businesses that promote professional career development and offer training take retention to the next level.

#8. 35% of employees will quit if they don’t get a raise.

The Vantage Circle report explains that 35% of its study participants say that they’ll quit if they don’t get a raise. So, if you want to make your remote employees stay, be truthful to your promises of elevating salaries.

Takeaway

Small and medium-sized companies may want to be aware of the employee retention statistics mentioned in this blog post, as they provide insight into what employees are looking for in a job.

Offering career development opportunities, training, and a good work environment are some of the best ways to keep employees happy and prevent them from leaving.

If you’re an employer who wants to retain your employees, make sure you offer these things! Have you implemented measures to boost retention in your company? Tell us more!

Our company is a full-service staffing agency specializes in outsourcing remote employees based in Mexico. A business model designed for US companies.