07 May A Comprehensive Look at Current Trends in Turnover
Unemployment rates are hitting record lows, with more than 10 states currently experiencing the lowest rates they’ve seen since beginning to measure unemployment. According to the U.S. Bureau of Labor Statistics (BLS), the unemployment rate for college-educated workers is just 2.1%.
During the recession, college graduates had difficulty finding jobs, so many people stayed in school and pursued advanced degrees. As a result, they had little to no actual work experience. Now, however, the availability of work has allowed younger generations of workers to gain experience. In pursuit of the best possible work experience to support their overall career goals, these workers are changing jobs more frequently than previous generations.
In fact, Millennials – who now comprise the majority of the workforce –average four jobs within the first decade of finishing their degree. Generation X employees averaged only two jobs in their first ten years in the workforce. Gallup estimates Millennial turnover costs the U.S. economy as much as $30.5 billion annually.
For employers to stay competitive, it has become essential to confront turnover head-on. While total turnover has risen within recent years, voluntary turnover has increased by more than 48% in less than a decade. In 2010, voluntary separations hovered around 9%, but they have climbed steadily in recent years and are now at 13.5% according to Compdata Surveys & Consulting’s BenchmarkPro survey results.
Many business experts suspect employers will continue to compete for labor through the next decade. With growing skill shortages and Baby Boomers reaching retirement age, these turnover rates will likely stick around, and perhaps even rise. Employee Benefit News reported last summer that employee retention is becoming organizations’ biggest concern, and statistics from Future Workplace and Kronos show 80% (of employers) consider improving retention a critical priority. Based on these key findings, it’s clear that today’s employers must find ways to effectively confront turnover in order to stay competitive.
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