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Although retaining talent is one of the top priorities of many companies, many new hires will leave their job within the first few years. But what are the reasons for leaving a job within three years, and how can companies improve employee turnover?
How Long Does the Average Employee Stay With One Company?
According to a 2022 Employee Tenure Summary by the U.S. Bureau of Labor Statistics, the average worker had only worked for their current employer for 4.1 years. However, the survey also found that although older workers were more likely to be loyal to their workplace for up to ten years, for younger employees, ages 25-34, the average employee tenure was only 2.8 years.
Glassdoor’s 2024 Workplace Trends stated that much of the workforce is currently made up of Millennials, and they’ve predicted that Gen Z will soon overtake Baby Boomers in the workforce. Given that almost 70% of young people considered leaving their jobs in 2023, the onus is on employers to provide opportunities and benefits that will increase employee retention in the coming years.
But before we highlight the importance of workforce development, let’s discuss why new employees quit within the first three years.
What Are The Most Common Causes of Employee Turnover?
Most people assume that inadequate compensation is the only reason new employees quit. However, once employees have gone beyond the one-year mark, poor pay typically isn’t their only reason for leaving.
A Pew Research Center survey found that low pay (63%), lack of career advancement opportunities (63%), and feeling disrespected at work (57%) were the top three reasons for leaving a job among U.S. workers.
The survey also found that among the staff who quit their jobs, the majority who aren’t retired are employed with a different company and report that their new job is an improvement. Over half of these employees claim to earn more money (56%) and have access to more career advancement opportunities (53%).
The Importance of Workforce Development
Workforce Development means offering staff training opportunities, mentorship programs, and formal education and certification programs that will maximize their career success.
The LinkedIn Learning 2024 Workplace Learning Report found that 94% of employees would remain working at an organization that invested in their education. Employees want the assurance that an organization has room for education and advancement in their field. If this isn't the case, companies will recognize higher employee turnover rates within the first few years of employment as staff are offered these benefits elsewhere.
The workforce is one of the most valuable assets within any organization. By investing in employees’ skills and education, the organization benefits from having a skilled workforce that is confident in their ability to perform and satisfied with their career trajectory. This also increases the overall morale and productivity of the company.
Therefore, the key to improving employee turnover and retention rates is to provide staff with opportunities and incentives to grow within your organization.