Employee turnover is a major concern for businesses in North America and Canada. High rates of turnover can have a significant impact on an organization's productivity, profitability, and employee morale. In this article, we will explore the statistics and insights related to employee turnover in North America and Canada, including the industries most affected, the reasons for turnover, and the costs associated with employee turnover.
Employee Turnover Rates in North America and Canada
According to a 2021 report by the Work Institute, the overall voluntary turnover rate in the US was 13.7% in 2020. The report found that the highest turnover rates were in the accommodation and food services industry (28.2%), followed by retail trade (18.6%), and healthcare and social assistance (16.6%). The lowest turnover rates were in the public administration sector (4.4%), followed by utilities (6.4%), and finance and insurance (8.8%).
In Canada, the 2019 Canadian Survey of Employers by Statistics Canada found that the overall turnover rate for permanent employees was 9.3%. The highest turnover rates were in the accommodation and food services industry (28.2%), followed by retail trade (18.6%), and healthcare and social assistance (16.6%). The lowest turnover rates were in the public administration sector (4.4%), followed by utilities (6.4%), and finance and insurance (8.8%).
Reasons for Employee Turnover
There are many reasons why employees choose to leave their jobs. According to a survey by the Work Institute, the top reasons for employee turnover in the US in 2020 were:
Career development (21.4%)
Work-life balance (12.8%)
Manager behavior (11.3%)
Compensation and benefits (9.9%)
Well-being (8.6%)
In Canada, the top reasons for employee turnover were found to be:
Better compensation (44%)
Career advancement opportunities (40%)
Work-life balance (28%)
Job security (27%)
Better benefits (27%)
Costs of Employee Turnover
Employee turnover can be costly for organizations, both in terms of direct and indirect costs. Direct costs include recruitment, hiring, and training expenses for new employees, while indirect costs include lost productivity and decreased employee morale. A report by the Center for American Progress found that the cost of employee turnover can range from 16% to 213% of an employee's salary, depending on the industry and level of the employee.
In Canada, the cost of employee turnover was estimated to be $16.6 billion per year, according to a 2018 report by the Canadian Payroll Association. The report found that the average cost of turnover per employee was $16,209, with the highest costs in the accommodation and food services industry ($25,150 per employee).
To keep in mind:
Employee turnover is a significant challenge for businesses in North America and Canada. High rates of turnover can have a negative impact on an organization's productivity, profitability, and employee morale. Understanding the statistics and insights related to employee turnover, including the industries most affected, the reasons for turnover, and the costs associated with turnover, can help organizations develop effective strategies to reduce turnover and retain their top talent. By focusing on improving career development, work-life balance, compensation and benefits, and manager behavior, businesses can create a more engaged and productive workforce.