Many companies focus on attracting top talent. However, too few have strategies for retaining those employees once they join the team. It’s true — employee retention is no easy feat, and it requires a deep understanding of what people need to feel happy and engaged at work.
How can companies keep their employees truly engaged? It starts by understanding what employees want and what’s going on in the workforce at large.
7 Employee Retention Stats
Here are seven employee retention statistics that give insight into current trends and what employers need to do to keep their people long-term:
1. 25% of People Voluntarily Left Their Job in 2021.
Companies across the country are experiencing historic losses. A staggering 25% of workers voluntarily left their jobs this year, meaning a quarter of all employees resigned to find better opportunities, better benefits, or better work environments.
With an overall turnover rate of 57.3% — voluntary and involuntary — and a record 10.1 million open jobs reported in June 2021, it’s apparent that many organizations are at risk of losing employees.
The job market is overflowing with openings. Since the pandemic’s peak, people are less willing to endure what they consider unfair or substandard working conditions. As a result, only the most competitive organizations are going to be able to survive this historic employee exodus many have called “The Great Resignation.”
2. 50% of Employee Turnover is Due to Stress and Burnout.
There’s no denying that the last year and a half have been incredibly stressful for many people. Burnout rates are skyrocketing, and people are leaving their stressful jobs in record numbers.
If employers want to keep their team, they have to focus on creating a positive work environment that reduces overall stress and burnout. They can do this by offering more flexibility and personalized benefits programs.
3. 40% of employees plan to resign based on how their employers handled the pandemic.
40% of employees have left their jobs or still plan to resign based on how their employers addressed or continue to address the pandemic.
In the height of the pandemic, some people were forced to go virtual, often working odd hours while balancing new technology and the struggles of working from home. Others were forced to face the pandemic head-on. In both cases, the employees relied on their employers for information, support, and understanding.
Some companies showed ample appreciation and earned loyalty from their teams during this period, and others made their people feel insignificant and forgotten.
The lesson here is simple: people resign when they don’t feel recognized, valued or cared for. To prove they care, leaders should begin by offering things like increased flexibility, individualized recognition, more time off, and personalized lifestyle benefits.
4. 70% of employees favor companies that offer learning and career development opportunities.
Most employees look for opportunities to expand their knowledge or elevate their career, as 70% of employees are willing to leave their current employers and accept offers from organizations that offer learning and development opportunities. This illustrates how important career development is to employee retention.
No one wants to be trapped in one role for the rest of their life. As a result, employees are prioritizing jobs with upward mobility. If organizations want to attract and retain high-quality employees, they must offer opportunities for advancement and career development.
5. 78% of millennials seek a healthy work-life balance.
78% of millennials report that they would be more loyal to an employer if they offered flexible work options, and 70% said they have left or would leave a job if it lacked flexibility.
Most employees look for opportunities to expand their knowledge or elevate their career, as 70% of employees are willing to leave their current employers and accept offers from organizations that offer learning and development opportunities. This illustrates how important career development is to employee retention.
No one wants to be trapped in one role for the rest of their life. As a result, employees are prioritizing jobs with upward mobility. If organizations want to attract and retain high-quality employees, they must offer opportunities for advancement and career development.
5. 78% of millennials seek a healthy work-life balance.
78% of millennials report that they would be more loyal to an employer if they offered flexible work options, and 70% said they have left or would leave a job if it lacked flexibility.
Almost three-quarters of all employees are willing to stay with their employers based solely on their benefits program — but only if those programs are comprehensive and have a genuine impact on their everyday lives.
Companies are composed of people from all walks of life, so priorities, values, and backgrounds differ from person to person. Two employees may not want the same benefits, so organizations should embrace a benefits program that gives employees the power to choose.
Offering customizable benefits allows organizations to personalize their benefits program, so they can ditch the one-size-fits-all model, eliminating guesswork and inspiring company loyalty.
7. Employees are 2X as likely to leave if they don’t feel recognized.
Employees want their company to recognize their hard work and commitment. When employees feel recognized, they’re more likely to stick around and much happier overall. In fact, when employees don’t feel recognized, they’re twice as likely to find a new job.
Recognition doesn’t have to be challenging, either. For example, a simple “thank you” from a supervisor can go a long way towards making an employee feel seen and recognized for their effort. Yet, despite that, at least 24% of employees feel like their work went unrecognized in the last two weeks.
Employee recognition needs to be a part of the day-to-day for companies. Frequent feedback, customized gifts, or points towards lifestyle benefits are effective ways to show appreciation and recognition.
Employee Retention Data Takeaways
Ultimately, companies need to be compassionate and hyper-aware of how their employees are feeling to retain them. They must consider their employees’ emotional, physical, and mental well-being.
The best way to accomplish that is to offer things like flexibility, regular recognition, and comprehensive benefits. Fringe can help companies achieve these things with its customized lifestyle benefits platform.
Talk to our team to get started today!
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