August 7, 2019 12:00 PM PT

Average Turnover Rate

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The average American stays at the same job for over 4 years. Overall, the United States has a 44% annual turnover rate. Keep reading to learn how turnover rates affect your business and the best ways to lower them.

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Turnover Rates in the United States

What is the average turnover rate?
The annual average turnover rate in the U.S. is 44.3%, according to the Bureau of Labor Statistics. That rate has increased steadily since 2014, when it was just 40.3%.

What region in the U.S. has the highest turnover rate?
The Southern region has a 48% average annual turnover rate.

What region in the U.S. has the lowest turnover rate?
The Northeast region has an annual average turnover rate of 37%.

Which industries have the highest turnover rates?

IndustryTurnover Rate
Leisure and Hospitality87.4%
Arts and Entertainment87.4%
Food Service Industry74.9%
Professional and Business Services63.3%
Construction58%
Retail58.3%
Mining and Logging55.5%

Which industries have the lowest turnover rates?

  • Federal Government Positions: 14.7%
  • Education: 18.5%
  • State and Local Positions: 20%
  • Finance and Insurance: 25.4%

Which major companies have the highest turnover rate?
According to a study performed by PayScale, companies with the highest turnover rates include:

  • Mass Mutual: 0.8 years
  • Amazon: 1 year
  • Aflac: 1 year
  • Google: 1.1 years

What is the average turnover rate for call centers?
Call centers have a high turnover rate compared to the national average. While many companies don't readily publish their turnover rate, the industry average is estimated to be 30% - 45%.

Understanding Turnover Rates

What is a good turnover rate?
A turnover rate of 10% or less is considered ideal.

How much does employee turnover cost a company?
On average, employee turnover costs a company 21% of the employee's salary. The exception to the rule is employees earning under $30,000 per year, for whom the cost is about 16% of their salary.

What's the average turnover cost of an executive?
Turnover of executives or positions that require extensive education can cost employers approximately 213% of their annual salary, according to a study conducted by Eileen Appelbaum and sociologist Ruth Milkman.

Open jobs in the U.S.
There were 7.5 million job openings in the United States in March 2019, an increase of 600,000 positions from the previous year. The Bureau of Labor Statistics defines a job opening as a position a company is actively trying to fill.

Tenure Rates in the United States

How long does the average employee stay at one job?
The average tenure of an employee in the United States is 4.2 years.

How long does the average male stay at one job?
The average male stays in the same position for 4.3 years. Approximately 30% of wage and salary earning men stay at the same job for 30 years.

How long does the average female stay at one job?
The average female stays in the same position for 4 years. Only about 28% of women tend to stay at the same job for 10 or more years.

How does the average tenure rate change with age?
Older individuals tend to stay at the same job for longer periods than younger employees. Employee tenure rates by age are:

Age RangeAverage Tenure Rate
Ages 20-241.2 years
Ages 25-342.8 years
Ages 35-444.9 years
Ages 45-547.6 years
Ages 55-6410.1 years
Ages 65+10.2 years

Ways to Lower Turnover Rates

What causes a high turnover rate?
Today's high turnover rates are often the result of one or more of the following:

  • Lack of company morale
  • Lack of opportunities for growth
  • Lack of work/life balance
  • Poor management

Why is a low turnover rate good for a company?
Constant employee turnover can cause low productivity and poor employee morale. A low turnover rate, on the other hand, can help improve productivity.

It can also save a company money, as replacing employees can cost between 16% and 20% of the employee's salary.

What are the best ways to prevent a high turnover rate?
Preventing a high turnover rate is primarily based on the work environment you provide to employees. The top companies with low turnover rates offer:

  • Employee recognition
  • Opportunity for advancement
  • Clear communication
  • Work/life balance

Bottom Line

The annual average turnover rate continues to rise in the United States and can be expensive for employers. Finding ways to reduce your company's turnover rate can help boost employee morale, productivity, and your company's bottom line.

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