Finance News & Insights

Turnover crisis: How bad is going to get?

Worldwide, turnover rates are expected to rise significantly over the next five years. But here in this country employers are expected to feel it the most.

In North America, more than half (59%) of employers expect a slight or significant increase in worker turnover over the next five years.

These figures come from a recent global study by Right Management.

Here’s the breakdown of other countries that expect higher turnover over the next half a decade:

  • Asia Pacific (58%), and
  • Europe (41%).

On average, 49% of respondents expect increased turnover over the next five years and just 14% foresee a decrease in that time frame.

While it’s impossible to completely prevent employee turnover, experts recommend that employers focus their energy on finding ways to keep top performers from jumping ship.

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  • Anne

    Being in college getting a degree in Psychology has helped me with just this topic. The I/O Psychologist has to deal with helping companies to do things to keep their employees happy. The biggest benefit a company can do, to help their employees with job satisfaction, is listen to them.

    Your employees can tell you what is wrong with the company, most of the time, if you will just listen. And, by listening, you tell your employees how important their thoughts and suggestions are.

    If you don’t have the money to give raises, try a bonus. Be honest with the employees and let them know how the company is doing. They would rather know how their employer is doing, than hearing all the naysayers tell them how bad the employer is for not listening to them and not giving raises, again.

  • Curtis

    The above comment has a good point. However, it is soooo much more involved than that. To me it is rather amusing that most employers rather let a good performing employee go than to increase their salary. Of course, you can’t see the cost of turnover on a single line in your financials, but it is far more costly to find/interview/hire/train a new employee than it is to give a good current employee a raise. Many studies have proven this to be true. So, with that said, it looks like employers will be experiencing unnecessary losses over the next 5 years…that is so unfortunate. Compensation plans are an absolute must as with most employers they will hire new employees at a higher salary than current employees in equivalent positions…of course their going to jump ship. While top executives are raking in EXCESSIVE amounts in salaries and bonuses, the average middle class employee that is smart and not overextended is still struggling to keep their head above water. Something is seriously wrong here. This plays a very large role in our economic crisis.