New Salary.com Survey Tracks 14% Year-Over-Year Decrease in Employee Turnover Rate
WALTHAM, Mass., Dec. 21, 2021 /PRNewswire/ -- Salary.com has released the results of the 2021 HR Metrics Survey and the news is good: despite the "Great Resignation" the employee turnover rate decreased 14 percent year-over-year (10 percent in 2020 to 8.6 percent in 2021). While the survey indicates there is still room for improvement around the quality of new hires, with more than a quarter of incumbent separations per organization happening within the first year of employment, that percentage is down from 44 percent in 2020.
Remote work remains popular
46 percent of survey respondents said their employees are working from home.
Working from home remains popular, though it dipped down 28 percent from 2020, with 46 percent of survey respondents saying their employees work from home. This relatively high percentage of companis with employees working from home represents both a sustained corporate appetite, and employee demand for, alternative workplace options, continued concerns about COVID-19 and vaccination rates, and a need to hire. Ninety-six percent of companies surveyed are hiring new employees.
"The positivity around remote work is compelling. We know from a Salary.com survey last spring that almost half of employees want to be fully remote, but the question remained, 'would employers embrace this new workplace model?'" said Chris Fusco, Senior Vice President of Compensation at Salary.com. "The answer is a resounding 'yes,' with 83 percent of employers now saying the shift to remote has been successful for their company, up from 73 percent in June of 2020."
Companies are upping their game when it comes to retention strategies, with 70 percent offering employee training. Promotions are also helping with retention, with the average length of service increasing with job level.
"With ninety-six percent of companies hiring, there is obviously tremendous pressure on companies to retain the talent they have, not an easy task in this tight labor market," said Fusco. "Openness to remote work, training and recognition programs can all contribute to favorable retention rates, but I believe companies that embrace real change around pay equity and pay transparency will be the ones that achieve a culture and workplace environment that breeds loyalty."
Data was gathered through July 2021 with 1,143 organizations participating. Data was collected, analyzed and compiled by the Compdata Surveys team at Salary.com specializing in the administration and publication of compensation surveys. As a matter of policy, the data is maintained in absolute confidentiality.
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SOURCE Salary.com, Inc.
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