2. Turnover Rate
This metric identifies the annual rate of employees who leave a company. The national average for turnover is around 7%—companies with lower percentages are doing well and those with higher percentages have room for improvement, especially because the cost of employee turnover can be significant.1 For example, the replacement cost of an employee making $45,000 per year is estimated to be $15,000—this is without factoring in impacts on employee morale or projects that are delayed as a result of the departure.2 Moreover, employee turnover is 40% more likely to occur in an employee’s first year, underscoring the importance of focused recruiting and purposeful onboarding practices.3
The good news is that employers that actively work to engage their employees from the moment of hire can prevent 87% of the employees from leaving, according to a recent study.4 Additionally, employee surveys and similar tools that demonstrate employee value by way of cultural, physical, and technological environments have proven to be effective means of increasing engagement.