Employee Turnover Rate: an issue plaguing every business
Managing employees in an effective manner requires you to stay on top of your numbers and keep a watchful eye on employee turnover rate. With the increase in employee turnover rate the cost incurred by the company increases as well.
Fact: The average cost of hiring and re-training an employee as a replacement for a job on an average salary of $50,000 is $37,500!
While businesses always try to aim for the 10% benchmark for employee turnover rate, that’s not always the case. Let’s take a closer look and find the various elements impacting the turnover rate in the following industries: hospitality, banking and finance, and healthcare.
Employee turnover rate in the Hospitality Industry
The hospitality industry has one of the highest employee turnover rates with an average of up to 29.3% Research shows that employee turnover rates level among non-management hotel employees are up to 50%. This may have debilitating effects on the bottom line, stability of operations, especially amongst highly skilled employee turnover, service quality and loss of clientele.
A few of the reasons behind this may be as follows:
- Unstable and long working hours
Working long hours is a part of the deal when working in the hospitality industry. However, continuously doing this over a long period of time often has a direct impact in terms of job appeal.
- Not being able to show their value
Many a times, while working in this industry, it is hard to show your worth to your peers and seniors. Lack of employee recognition affects the employee's enthusiasm to work at the same job. (Have a look at our blog, Corporate Volunteer Programs: Why You Need Them)
- Lack of communication
There is no communication between managers and workers about the workers opinions, thus reducing the sense of belonging to the enterprise.
Employee turnover rate in the Banking & Finance Industry
The Banking and Finance Industry is another industry that entails a high employee turnover rate. The average turnover in the Banking sector is 17.2% in the US.
The following are reasons for high turnover in the banking sector:
- Work Environment
Instability in the work environment has a direct relationship with high turnover. Employees like to have a job where they can anticipate what is next in store for them. (Check out our blog on CSR Strategy: Shaping The Employee Experience)
- Job Stress
High Mergers and acquisitions, increase in globalization, technical advancement and dependence in the economy has increased the pressure due to an excessive work rate.
- Employee Relationship with management
A poor relationship with management can be an important reason for employees to leave their jobs. It is relatively rare for people to leave jobs in which they are happy, even if offered by higher salary elsewhere.
Employee turnover rate in the Healthcare Industry
The healthcare industry has a high employee turnover rate of up to 16.8%  In the medical industry, the highest turnover is seen amongst the nurses with an average of around 25%. 
Reasons for turnover in the healthcare industry are as given:
- Retirement of baby boomers
In 2000, the Department of Health and Human Services gave compelling evidence than the average age of nurses was rising. The retirement of baby boomers is creating a huge void in the medical industry, which is not being able to get filled at a fast pace.
- Increase is web-based job opportunities
Today is a world of the labor market to be more employee-driven than employer-driven. Convenience is a huge reason behind employee turnover in hospitals.
Does your organization have a high turnover?
 Compdata Surveys
 CHA International 2009
 Employee Turnover in banking sector: Empirical evidence 1 Santript Shukla, 2 Dr. Ambalika Sinha 1 Santript 2 Dr. Ambalika Sinha_Asst.
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