How Much Does Turnover Go Up?

Many employers are concerned that turnover will go up as the economy improves, and PWC Saratoga has provided a benchmark for predicting this. According to their analyses, voluntary turnover increased significantly in the years that immediately followed the end of recessions in 1993 and in 2004. In each case they researched turnover for the two years that followed, and in ’93 the rate increased by 15% and in ’04 the rate increased by 11%.

What factors will drive how much the rate increases after this recession? Here are two considerations. On the one hand, we are told that jobs will be added more slowly, so it is logical to assume that fewer workers will quit if they have nowhere to go. On the other hand, this recession was longer and deeper than the other two and caused organizations to make more drastic changes. So employees might be more bitter and more driven to look and leave.

Most importantly, those with the best opportunities to leave will be the best workers, the ones you need the most. So meet with them and ask them why they stay…then make sure you accommodate their needs as best you can.