Despite high levels of layoffs happening in some industry verticals, managers at many businesses struggle to retain great employees. The latest employee turnover rate by industry statistics show the need for managers to give workers what they want. Let’s look at the numbers, along with suggestions on how to improve worker satisfaction with their current position.
Employer Turnover Rate by Industry
The details from the Job Openings and Labor Turnover Report for November 2022, published by the Bureau of Labor Statistics, reveals that 3.568 million employees left their jobs that month. That figure amounts to 2.3% of the workforce. Some industry verticals experienced a much higher rate of turnover.
The average leisure and hospitality business experienced a 4.6% attrition rate. A deeper look into that industry, reveals the average accommodations and food services business with 100 employees lost 5 workers in November 2022. A manager faced with this level of attrition on an ongoing basis could be faced with the need to hire 5 workers every month.
The news isn’t much better for retailers. They witnessed an employee exodus of 3.6%, while transportation, warehousing and utilities businesses came in at 3.7%.
By region, government data shows that more people in the South (27%) left their jobs than in the Northeast at 1.5%. The rates in the West and Midwest were at 2.3%.
Why Employees Leave
DailyPay.com suggests that people frequently leave lower paying positions in favor of higher ones. Makes sense. During an era of high inflation and bidding wars for talent, who came blame employees for signing on with higher-paying employers. But is that the whole story?
DailyPay.com analysts indicate better recruiting practices could help employers find candidates who might stay in their positions longer. Psychometric assessments can serve as a screening tool to find candidates with specific qualities. Jobs with erratic work schedules won't appeal to everyone. The need to deal with less than gracious customers means employers must seek the right candidate.
Another reason workers may be leaving their current job is because they are being actively poached by other employers. For some positions, such as the skilled trades, unions pursue open shops and convince licensed plumbers and electricians to join and then shift to a jobsite that is closed, leaving the original employer without enough staff. The union is clearly making an effective sale pitch in these cases.
Your Sales Pitch to Employees
If you expect your employees to stay, think about the sales pitch you can make to them. Much can be said about why employees leave their positions by considering what they are looking for in a new job. Our research on health care practitioners indicates these professionals will be looking for a better competition package (21.1%) and work-life balance (22.7%) in their new position, benefits which aren’t being met in their current position. While K‑12 teachers told us they are seeking those same benefits, nearly 14% are also looking for a caring, trusting manager and want to be valued by the organization they work for.
Do your employees feel valued? If asked, would they agree they work for a caring and trusting manager? If you’re not sure, survey them. You need to understand why your employee turnover rate is so high.
The Call for Manager Action
Once managers understand what is causing great team members to leave, they can put retention plans in place. Turnover rates may vary by industry, but workers across the U.S. are seeking a few universal aspects in their work life. These aspects include better compensation and a work-life balance.
But by industry, managers should fully analyze what’s driving turnover. If employees consistently complain about erratic work schedules in retail or food service, consider offering them an hourly differential each time you adjust their hours on short notice. At least they will receive extra pay for the ongoing inconvenience.
Employee Needs and Wants
Workers with erratic schedules often have a deeper need, such as how to cover child care responsibilities. Managers who can offer onsite child care services or forge a connection to a site with a great reputation will score points with employees and deepen their loyalty and engagement.
In a health care setting, you may not be able to offer remote work as an option. But a review of psychometric assessments will allow you to understand what motivates an employee. Maybe they’d appreciate the chance to be charge nurse for a shift. Or they want certification to become qualified for the cardiac or emergency department.
Decrease Your Turnover Rate While Increasing Employee Satisfaction
The employee turnover rate by industry doesn’t have to become the norm for your company. When you take the time to learn about your employees and help them achieve their best work, you’ll see your retention rates increase.
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