Employee turnover, the process where employees leave their positions and are replaced by new hires, holds significant implications for businesses. Excessive turnover can disrupt workflow, hinder productivity, and incur substantial costs associated with recruitment and training.

One noteworthy trend is the increasing emphasis on employee satisfaction and engagement. In today's competitive job market, employees seek more than just a paycheck; they crave meaningful work experiences and opportunities for personal and professional growth. Companies that prioritize employee well-being, foster a positive work culture, and provide avenues for development are better positioned to retain their talent pool. Additionally, flexible work arrangements, such as remote work options and flexible hours, have gained prominence, especially in the wake of the COVID-19 pandemic, as they promote work-life balance and enhance employee satisfaction.

Another notable trend is the rise of freelance and contract work arrangements. Instead of traditional full-time employment, many individuals opt for project-based or temporary positions, contributing to higher turnover rates as they move between projects or clients. To adapt to this changing landscape, businesses must refine their recruitment and retention strategies to accommodate the preferences of freelancers and contract workers.

Generational dynamics also play a role in shaping turnover trends. With the retirement of Baby Boomers and the influx of Generation Z into the workforce, companies must modify their approaches to meet the distinct preferences and expectations of each generation. For example, Generation Z employees often prioritize purpose-driven work and value transparency and authenticity in their interactions with employers. By understanding and catering to these generational nuances, businesses can enhance employee engagement and retention efforts.

The surge in remote work arrangements has reshaped the employee turnover landscape. While remote work offers benefits such as flexibility and reduced commuting stress, it also presents challenges in fostering connectivity and collaboration among remote teams. Employers must invest in technology and communication tools to facilitate seamless collaboration and ensure remote workers feel valued and integrated into the company culture.

In conclusion, employee turnover is influenced by various trends, including employee engagement, the economy, generational differences, and the rise of remote work. By staying attuned to these trends and implementing tailored strategies, businesses can mitigate turnover risks and cultivate a resilient and engaged workforce.

ASE Connect

ASE conducted its 2024 Employee Turnover Survey earlier this year, which captures data for turnover for the 2023 calendar year.  Of the 201 companies surveyed, the overall turnover percentage was 18.4%, with 10% being voluntary and 8.4% being involuntary. The top primary reasons for turnover were better salary/compensation, retirement, lack of advancement opportunities, personal problems (family, health, etc.), and access to remote work opportunities.   The top actions taken in the last 12 months to reduce turnover were conduct exit surveys, conduct a compensation and/or benefits review, improve/implement new hire orientation/onboarding, conduct an employee survey (i.e., engagement, etc.), and allow and support remote work.  With a new hire ratio average of 1.07, it is clear that hiring is outpacing separations.    

ASE members can view the full 2024 Employee Turnover Survey report in the ASE Survey Library.