High Turnover Rate: What Causes Them?

Brilliant business owners stumble when they can only focus on the parts that make up their company, and this compartmentalization can cause them to neglect to see the webs of connection that holds those parts together. 

It’s like seeing all the trees in the forest, but forgetting the underground network that lives underneath. If one of your trees is rotting, are you going for a quick fix? Or are you going to get to the “root” of the problem?

High turnover rates are often a symptom of a deeper problem within an organization. If turnover is high, it may be indicative of a lack of communication or poor management. 

Not only that, high employee turnover can be costly for businesses, as they lose out on the productive work of employees who leave and have to incur the costs of training new hires. 

So how do we get to the “root” of high turnover rates? 

In this article, we’ll learn more about high turnover rates, their causes, and what you can do, as a business owner, to reduce them.

What Does High Turnover Mean?

High turnover rate can be defined as the percentage of employees who leave a company within a certain time period. 

This can be calculated by dividing the number of separations (employees leaving) by the average number of employees during that period. 

A high turnover rate can be detrimental to a company, as it can lead to higher costs associated with training new employees and decreased productivity. In some cases, high turnover rates can also indicate poor working conditions or a lack of job satisfaction among employees.

Many companies resolve this issue by investing in a selling system that both engages and motivates employees.

At Wizard of Sales®, our C.O.R.E. Playbook not only engages and motivates your employees, but also aligns your communication and culture into a single unified selling system that consistently exceeds your goals.

Book a demo with us today to learn more!

Employee Turnover Statistics in 2022

In 2022, high turnover rates will continue to be a problem for businesses. Employees are leaving their jobs for a variety of reasons, including better pay, benefits, and working conditions elsewhere. 

This can be costly for companies, as they must constantly train new employees to replace those who have left. Turnover rates are expected to remain high, so businesses must find ways to retain their employees. 

With that, here are some recent employee turnover statistics provided by Zippia that show just how imperative it is for companies to find ways to keep their workers happy and reduce high turnover rates:



  • A study from the ADP Research Institute has shown that roughly 60-70 percent of all turnover is voluntary.

This is a makeup of the majority of industries. Voluntary turnover simply means that it is a result of the employee’s decision, which makes it much harder to predict.

  • Based on a survey conducted by a recruiting firm in 2018, 33 percent of employees quit their job within the initial 90 days they were employed.

Out of the 1,500 individuals, 500 said that they had quit their job within their first three months as an employee. 

Close to half of that 33 percent explained that they resigned from the position because it didn’t meet the expectations that were set for them during the interview process. 

  • The same survey also concluded that 17.42 percent of employees quit their job just one month into their employment.

Additionally, 16.45 percent of employees quit within the first week, and 14.48 percent quit after six months.

  • There were 10.1 million job openings in the U.S. as of June 2021.

Since 2020, approximately four million new jobs have become available, with a whopping 590,000 new job opportunities between May and June 2021 — increasing job openings by 6.5 percent in only one month.


  • The average employee turnover rate in the U.S. has jumped from 42.6 percent in 2016 to 57.3 percent in 2020.

This is a 50 percent increase from the record-breaking low of employee turnover in 2016.

  • Approximately 4.4 million people left their company in September 2021.

This is a 164,000 increase from the previous month. especially in the art, recreation, and entertainment industries. 

  • As of September 2021, a high three percent of people are quitting their jobs.

Roughly 70 percent of people quit their jobs in April 2021 – the highest rate of job separation since the Bureau of Labor Statistics even started culminating these studies. Compared with the previous year in April 2020, only 17.25 percent of employees quit their jobs.

  • The number one reason people leave their jobs is because of money.

Employees are seeking to earn more compensation as well as benefits. This occurs more often with an unhealthy work culture and weak leadership.

  • 70 percent of employees aren’t engaged or motivated at work.

A “State of the American Workplace” survey conducted by Gallup found that only 20 percent of workers feel engaged and motivated in their organization, and based on other statistics, this number is expected to drop even further.

  • High retention rates can be achieved with a flexible work environment, recognition of employees as valuable assets, and providing adequate compensation.

Providing great benefits, career growth opportunities, and encouraging a healthy work/life balance are also top contributors to keeping top talent around long-term.


High employee turnover rates can have several notable effects, both on individual businesses and the economy as a whole. 

For businesses, high turnover can be costly in terms of both money and time. The high cost of recruiting and training new employees can take a toll, particularly on small businesses. 

On average, the cost to hire and replace an employee is roughly six to nine months of their salary. This includes the cost of lost productivity, cost of hiring, onboarding, and any accrued errors.

For instance, if your employee has a salary of $60,000 annually, it would cost approximately $30,000-$45,000 to replace them. The more an employee makes the bigger your expense.

High turnover rates can also lead to a decrease in morale among employees who feel like they are constantly being replaced. This can create a toxic work environment and make it difficult to retain good employees.

In the grand scheme of things, high turnover creates a ripple effect on businesses and the economy as a whole. So be sure to keep an eye on your turnover rate and take steps to improve it if necessary.

StressThe Drivers of Employee Turnover

Several factors can contribute to a high turnover rate in an organization. Here are the most common ones to watch out for:

  • Stress: Employees who feel high levels of stress at work are more likely to leave their jobs. Stress can be caused by factors such as heavy workloads, unrealistic deadlines, conflict with co-workers or managers, and unclear job expectations.
  • Demographics: Young workers, workers with families, and workers in high-demand fields are more likely to move on to other opportunities. This is often because they have less job stability and are more likely to be recruited by other companies.
  • Indicators: There are some early indicators that an employee may be considering leaving, such as decreased productivity, increased absenteeism, and a negative attitude. If you notice these changes in an employee, it’s important to address the issue head-on.
  • Leadership: Poor leadership is one of the most common reasons why employees leave their jobs. If employees don’t feel like they are being supported or developed by their managers, they will be more likely to look for opportunities elsewhere.
  • Job Satisfaction: Employees who are unhappy with their job are more likely to look for new opportunities. If you notice that an employee is disengaged or has low morale, it’s important to try to improve their job satisfaction.
  • Job Content: Employees can also become disengaged if they are bored with their job or feel like they are not being challenged. If an employee’s job is not meeting their needs, they will be more likely to look for a new position.
  • External Environment: The external environment can also impact employee turnover. If there are few jobs available, employees will be less likely to leave their current position. 
  • Co-worker: Relationships with co-workers can also impact employee turnover. If an employee has a bad relationship with their co-workers, they may be more likely to look for a new job.
  • Compensation: Compensation is a huge contributor to whether your employees stay or leave. If an employee feels like they are not being paid fairly, they may be more likely to look for a new job.

It is essential that business owners understand the drivers of employee turnover. Once you do, you can take steps in creating a work culture that puts its employees first. 

“Happy, healthy, and wealthy employees drive business success.”

Culture IS the Strategy

Creating a company culture that employees want to be a part of is one of the most important things you can do as an entrepreneur. 

It’s not easy, and it takes time, but it’s worth it. Not only will you see higher retention rates and lower turnover rates, but you’ll also see happier customers who are more likely to stick around for the long haul.

Who are you as a brand? What do you stand for? What value are you providing not only to your customers but to your employees?

Culture does NOT eat strategy for breakfast. At Wizard of Sales®, we know culture IS the strategy — and a great culture starts with you. 

Our C.O.R.E. Playbook will engage and motivate your employees as well as keep them excited about coming to work each day. 

Contact us to book a demo today!