WORQDRIVE Reveals the True Cost of Employee Turnover in Dynamic Job Market
Analysis Shows Turnover Cost U.S. Employers 2.4 Trillion in 2021
WORQDRIVE, the talent mobility engine designed to empower and engage workers, revealed additional details about the staggering cost of employee turnover – and what it says about volatile job market. According to proprietary analysis, WORQDRIVE determined that turnover cost U.S. employers close to $2.4 trillion in 2021.
WORQDRIVE’s calculations account for the 92 million U.S. workers who changed jobs, representing a turnover rate of more than 57 percent of the total workforce. Quantified based on average salary, WORQDRIVE arrived at the multi-trillion-dollar figure.
Tracey Parsons, CEO of WORQDRIVE, shared, “It’s hard to wrap your head around a number like 2.4 trillion, especially in the context of the money it cost U.S. businesses. What’s more, the Great Resignation only started halfway through 2021, which means that in any given year, turnover is a trillion-dollar problem that we’re not addressing. The good news is that organizations have the chance to take action.”
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With research underway about the Great Resignation, it seems the movement originated from a divide in the social contract between employer and employee. According to survey results from McKinsey, “employees were far more likely to prioritize relational factors, including feeling valued by their manager and organization, and having a sense of belonging. In contrast, employers were more likely to focus on transactional factors, such as inadequate compensation and work-life balance.” In fact, additional McKinsey findings indicated that one of the top three reasons employees left their jobs last year was lack of career development.
George LaRocque, founder and Principal Analyst of WorkTech, commented, “The churn in the job market last year set records, and those trends continue to this day. Even with layoffs in certain sectors and concern about an impending recession, employees at all levels keep leaving. Recognizing the impact that has on organizations is the first step in understanding how to fix the problem.”
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Parsons added, “If we look at the cost of turnover alongside why employees leave, we can see that talent retention is a missed opportunity. By understanding what employees want career-wise, organizations can create plans and pathways that support talent mobility and long-term tenure. In effect, that works to stem turnover and reduce the stunning costs we identified.”
WORQDRIVE is the award-winning talent mobility engine designed to empower and engage workers. Committed to putting talent first and creating more equitable workplaces, WORQDRIVE delivers the tools needed to democratize movement within organizations. With modules for Talent Management, Succession Planning, Alumni and more, WORQDRIVE gives workers the ability to actively manage their career advancement in line with goals and skills.
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