Turnover by Geography
Wyoming, Utah, North Dakota, Oklahoma and Alaska rank as the top five states in highest turnover rate. However, all of these states rank in the top 10 for hiring rate over the same time period. This correlation is typical because employees are not usually leaving the workforce, they are simply shifting from job to job. Wyoming and New Hampshire are the only states where the turnover rate exceeded the hiring rate.
Voluntary vs. Involuntary Turnover Trends
The proportion of voluntary separations in Q1 '15 was unchanged versus the prior quarter. However, the proportion of voluntary separations is down for Q1 '15 year over year representing the first year over year decline for Q1 since 2011. The proportion of voluntary separations is slightly down, but there still appears to be ample opportunity for employees to willingly change jobs.
More than half of all employees who left their job in the past year did so within the first twelve months. Predictably, the Retail and Leisure industries – which have a high volume of hourly and seasonal workers – experienced a large percentage of fast turnover. However, Business Services (e.g. Temporary Staffing) and Transportation have comparable percentages of fast turnover as well.
HOT TOPIC: The Affordable Care Act (ACA) requires organizations to offer benefits to all employees that work an average of 30+ hours per week over a 3-12 month measurement period. Understanding fast turnover and the average tenure of hourly employees is critical for developing an effective ACA strategy and accurately forecasting potential benefit costs. To learn more about the ACA-related employment trends, visit our Affordable Care Act page.