Employee turnover risk has reached its highest level since 2015, with Gallup’s latest measure showing 51% of U.S. employees are either watching for or actively seeking new job opportunities. Although voluntary turnover rates have stabilized post-Great Resignation due to a cooling job market, employee commitment to their current organizations is at a nine-year low.
The cost of replacing employees is significant, with Gallup estimating that replacing leaders and managers costs around 200% of their salary, while replacing professionals in technical roles costs 80%, and frontline employees 40%. Employees often make quick decisions to leave, with 77% of voluntary leavers either departing within three months of job searching or without actively searching at all. Additionally, 36% of voluntary leavers did not discuss their decision with anyone before resigning.
Proactive communication from managers is crucial in preventing turnover, yet nearly half of voluntary leavers reported no proactive discussions about job satisfaction, performance, or future with their organization in the three months before leaving. When such conversations did occur, only 29% discussed career futures, and 28% discussed job satisfaction. Compensation and benefits were noted as key retention factors, but 70% of preventable leavers highlighted management-related issues like personal interactions, organizational frustrations, career advancement opportunities, and workload concerns.
