ROSELAND, NJ -- (Marketwired) -- 02/20/18 -- Five percent of workers leave their jobs, voluntarily and involuntarily, every month on average, and 60 - 70 percent of all employee turnover is voluntary, according to a recent ADP Research Institute® (ADPRI) report, "Revelations from Workforce Turnover."
In today's tightening labor market where finding skilled labor is tough, turnover, whether it is planned or not, can be quite a challenge for employers. Hiring and training new workers, managing through temporary skill and capacity gaps during vacancies, and even surviving the loss of valuable institutional knowledge can be costly and difficult for companies to recover from. However, this new study shows that a data-driven approach can be applied to help employers predict, and potentially reduce, unplanned departures.
"It has always been important for employers to minimize turnover, but it is more critical now than ever before given the current state of labor market," said Ahu Yildirmaz, co-head of the ADP Research Institute. "Unemployment is at a 17-year low, and job switching is at a record high. If employers can use data to identify flight-prone employees and understand what's driving their departure, they will have an important advantage in a highly competitive market for talent."
ADPRI analyzed two years of monthly aggregated and anonymized payroll data from more than 41,000 companies and 12.5 million employees. From a sub-set of that data a model was developed to help predict employee turnover and shed light on the factors driving it. In fact, the study determined that when a company's historical turnover rate is applied to the probability model established in the research, the model can identify "at risk" employees at a rate of five to six times higher than guesswork.
The study explored the overall landscape of turnover and determined the following:
Marc Rind, chief data scientist at ADP, said, "Data can say things that employees might not during exit interviews, and shed light on causes of voluntary turnover that even the best expert may miss. In today's challenging talent market, unbiased, insights derived from actual workforce data can enable employers to identify potential flight risks before it's too late."
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