As 2022 wraps up, organizations are preparing to hire in yet another year where the market is candidate-driven, but with the added twist of navigating a potential economic downturn.
In such an uncertain market, employee retention should be more top of mind than ever. Unlike previous historic economic shifts, employees still have many options outside the traditional 9-5, like joining the gig economy or starting a business. Instead of hunkering down and playing it safe by staying in their current roles, professionals have the option to walk away from the traditional workforce and find something else.
In this blog, we’ll explore the major takeaways from 2022, break down employee retention statistics and share what you can do about it in 2023.
Why Employee Retention Matters
First and foremost, organizations devote considerable resources to acquiring top talent for key positions; the last thing they can afford is for that shiny new hire to walk away six months into the job for a better offer elsewhere.
Secondly (but no less important), retaining top performers matters more now than ever before. In a wildly competitive job market where employers struggle to spend even more resources to bring on top performers, finding a replacement for a key employee can drag on. So, it is no surprise that 87% of HR managers rate employee retention as a top priority.
What We Saw in 2022
As the bulk of this year rests in our review mirror, we’ve noted several major trends worth reporting.
Younger Generations Expect More from Employers
For starters, we’ve noticed just how much more younger employees are keen to move on to greener pastures than older segments of the workforce.
When companies hire younger professionals, if the hiring process isn’t optimized or the role details aren’t adequately shared in the interview process, new hires are more likely to cut ties and move on than in previous generations.
This is far from an indictment on millennials and Gen Z. It is, however, a cautionary tale to companies that reveals just how many options top candidates have today (even with the economic shifts rattling the market) than in years past. As a result, optimizing the candidate experience and onboarding process should be top priorities for employers heading into 2023.
Industry-Hopping Is Becoming More and More Common
Furthermore, we’ve seen a larger portion of the workforce willing to move into new industries—nearly 50% of people are calling it quits with their current job to venture into new spaces.
It’s paramount for organizations to acknowledge this prevailing restlessness and ensure that they are checking in with current employees on job satisfaction, highlighting career development pathways, and, above all, letting their team members know that they are heard, supported, and appreciated.
Employee Retention and Turnover Stats
2022 contained its fair share of ups and downs. Here are some of the significant statistical takeaways from the year:
- 5.9 million people quit their jobs in July alone
- Replacing a full-time employee can cost up to 200% of that individual’s salary
- 16% of workers would consider quitting their job if working on-site was a full-time requirement from their employer
- 96% of employees believe empathy is essential to keep them on board
- 70% of employees consider leaving their current position if they believe they have better career advancement opportunities elsewhere
- Good onboarding experiences boost retention by 23%
While the above statistics cross several areas of concern, the primary lessons are clear. Employees have more career options and are more willing to leave than in previous years. They’re concerned about their career development, and good management and experience will be vital to keeping them. For employers, it’s more difficult and more costly to replace top talent than ever before. At ITAC, we anticipate this trend to continue into 2023 and beyond.
Boost Retention with ITAC Solutions
At the end of the day: people are a company’s biggest asset—even during times of economic uncertainty. ITAC Solutions is committed to matching our clients with only the most proven, committed candidates the market has to offer. When you partner with us, our team takes the time to understand your unique needs and company culture, so you can have the luxury of knowing you’re making the right hire the first time. Contact our team today to make your next hire with confidence.