Job Turnover Rates at a 5-year High, MRA Survey Shows

March 01, 2023
Press Release
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FOR IMMEDIATE RELEASE

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Kathryn Klopfer, Marketing Communications & PR Manager
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Job Turnover Rates at a 5-year High, MRA Survey Shows

MILWAUKEE, WI (March 1, 2023) – The newly released Turnover Survey from MRA – The Management Association shows that turnover increased to 25.8 percent in 2022—the highest rate in the past 5 years.

 

For overall turnover rates, Production, Maintenance, Service & Trade positions again had the highest turnover rate of all groups, with one in three (33.8%) employees leaving their organizations. Of those employees who left their employment, 72% were within two years of their work, indicating that this employee group could be job-hopping, leaving employers struggling to sustain consistent workforces.

Groups seeing an increase in turnover this year were Managerial, Supervisory & Professional (18.3% turnover rate), and Office and Technical (23.5% turnover rate). The Executive level saw turnover rates ease to 8.8%.

Trends show that turnover has started to stabilize; however, organizations will continue to see challenges with competitive talent, an exhausted workforce, and pressure to control costs due to the current economic environment.

“Not all turnover is necessarily bad,” said Lisa Pook, Organization Development Director at MRA. “It’s a natural part of an organization’s operations. What is most important is that employers know and understand why their employees are leaving in the first place.”

Tracking employee retention and being on top of an organization’s turnover rate is essential, according to MRA. Follow turnover monthly to see the trends and plan for future turnover.

Employees give many reasons for leaving their jobs: expectations, excessive workload, lack of flexibility, better salary, etc. There will always be turnover; however, getting to the root of the turnover can help prevent more employees from leaving.

Offsetting turnover should happen right away to avoid affecting the bottom line. Organizations report that they used several actions to offset turnover once it did occur. The top three plans include:

  • Recruit and hire full-time employees (73%)
  • Process improvement (66%)
  • Overtime hours (64%)

When employees leave an organization, the cost is not just in replacing them. Employees may take with them knowledge. The departure of tenured personnel can be especially costly: Longer-term employees are more likely to hold key positions and possess specific knowledge and skills.

MRA’s survey identified the top actions organizations are taking to reduce turnover:

  • 72% conduct exit interview surveys
  • 70% conduct a compensation and benefits review
  • 69% implement pay increases

MRA recommends that retention strategies can affect turnover and help an organization understand its employees. Organizations can take proactive measures such as focusing on developing employees’ careers, creating satisfying job positions, and maintaining a solid company culture.

“Reducing employee turnover begins the moment they start the hiring process,” adds Pook. “Ensure realistic expectations for the job, conduct compelling interviews, and provide a solid level of support and education about the organization at the very beginning. Providing transparency regarding your total reward package and compensation also helps defend against other opportunities that could be presented to your employees.”

“Creating opportunities to listen and communicate with employees while providing a supportive environment where employees can grow within an organization goes a long way in keeping employees engaged and reducing turnover,” said LOCAL CONTACT

In this survey, data was broken out by four key employee groups: Executive; Managerial, Supervisory & Professional; Office & Technical; and Production, Maintenance, Service & Trades Workers, including breakouts by state, organization size, industry, revenue, and profit status. The survey was conducted from December 2022 to January 2023, with 572 organizations contributing data.

To obtain a copy of MRA’s full 2023 Turnover Survey, contact the Surveys team at 800.488.4845 ex. 3508.

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About MRA – The Management Association: Founded in 1901, MRA is a nonprofit employer association that serves 4,000 employers, covering more than 1 million employees worldwide. As one of the largest employer associations in the nation, MRA helps its members thrive by offering comprehensive HR services, talent management, learning and organization development opportunities, and total rewards planning. MRA helps organizations build a successful workplace and a powerful workforce. Headquartered in Wisconsin, MRA has regional offices in Iowa, Illinois, and Minnesota. To learn more about MRA, visit www.mranet.org.