What's considered a good turnover 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.
Turnover rates change from month to month, year to year, industry to industry. For instance, according to an industry specific report from the BLS, government agency turnover rate is around 25%, education and health services is around 50%, retail is about 70% and hospitality is well above a 100% turnover rate.
At the end the year you have about the same number of employees but you had many more start, work for a while, and then leave. This means you had turnover in excess of 100%.
The average turnover rate for all employment is 3.5 percent.
Industries with higher turnover rates include food service, sales, construction, and arts and entertainment organizations. Turnover in these industries is well above the 3.5 percent rate, going as high as 6.1 percent in arts and entertainment.
U.S. employee annual voluntary turnover is likely to jump nearly 20% this year, from a prepandemic annual average of 31.9 million employees quitting their jobs to 37.4 million quitting in 2022, according to Gartner, Inc.
General Employee Turnover Statistics
On average, every year, a company will experience 18% turnover in its workforce. A business can expect on average to lose 6% of its staff because of reduction in force or terminating them due to poor performance.
Bad employee turnover: Bad turnover is when moderate- or high-performing employees are leaving for lateral positions. This means you have a bad work environment or are paying under market value. If your bad turnover rate is more than 15% per year, you should take a close look at your compensation and company culture.
Low turnover means a company has a relatively small number of employees leave during a given period relative to the employees hired or employed at the start of that period.
Measure the right metrics
For example, in the the 2021 Bureau of Labor Statistics report, the overall turnover rate is 57.3%, but that number drops to 25% when considering only voluntary turnover, 29% when considering involuntary turnover and just 3% when looking at only high-performers.
Final Thoughts. There you have it: you can absolutely get turnover rates of more than 100%. But remember that turnover numbers can vary substantially month to month. This is particularly important in the case of annualized turnover.
What is the average turnover rate for a small business?
The average turnover rate in the US in 2020 was 57.3%
The average rate of turnover among all companies in the US sits at 57.3%. This means that more than half the workforce are either leaving their jobs and starting new ones or being terminated.
Higher turnover rates mean increased fund expenses, which can reduce the fund's overall performance. Higher turnover rates can also have negative tax consequences. Funds with higher turnover rates are more likely to incur capital gains taxes, which are then distributed to investors.
What is a good employee retention rate? Generally, employee retention rates of 90% or higher are considered good, meaning a company should aim for an average employee turnover rate of 10% or less. In 2021, the average retention rate was around 52.8%2, but the individual rate varies by industry and sector.
HR professionals understand employee turnover better than most people — and not just because their jobs concern the talent lifecycle of all employees. That's because HR itself has the highest turnover rate of any job function, according to LinkedIn's latest behavioral data from around the world.
Jacob Bøtter via flickr The job market is picking up, and workers are increasingly jumping ship. A new Payscale report published on Thursday ranked Massachusetts Mutual Life Insurance Company as having the highest turnover rate out of all of the Fortune 500 companies.
Measure the right metrics
For example, in the the 2021 Bureau of Labor Statistics report, the overall turnover rate is 57.3%, but that number drops to 25% when considering only voluntary turnover, 29% when considering involuntary turnover and just 3% when looking at only high-performers.
Bad employee turnover: Bad turnover is when moderate- or high-performing employees are leaving for lateral positions. This means you have a bad work environment or are paying under market value. If your bad turnover rate is more than 15% per year, you should take a close look at your compensation and company culture.
The national average annual turnover rate was 57.3% in 2020. The number of people who left their job due to quitting, layoffs, discharges, or any other separation increased to 6.2 million people in September 2021.
What is a good employee retention rate? Generally, employee retention rates of 90% or higher are considered good, meaning a company should aim for an average employee turnover rate of 10% or less. In 2021, the average retention rate was around 52.8%2, but the individual rate varies by industry and sector.
