What is a reasonable turnover rate?
Asked by: Dr. Cesar Daugherty | Last update: November 13, 2025Score: 4.7/5 (55 votes)
What is an acceptable turnover rate?
Pro tip: It's important to note that turnover rates vary significantly from industry to industry. However, turnover rates should (ideally) be lower than 10%, which is a very healthy turnover rate across the board.
Is 20% a high turnover rate?
However, you should aim for a turnover rate of 10% and, according to SHRM, most companies have a rate closer to 20% (and your target turnover rate will depend on different factors, such as your industry and your internal promotion rate.
Is 5% turnover rate good?
Studies have routinely demonstrated that top performers contribute an average of 10 times more than average performers. Some firms, like Microsoft, claim that contribution number to be much closer to 100. From my experience, top firms keep turnover among the top 25 percent of the employee population to below 5 percent.
Is 25% a high turnover rate?
For example, in the the 2021 Bureau of Labor Statistics report, the overall turnover rate is 57.3 percent, but that number drops to 25 percent when considering only voluntary turnover, 29 percent when considering involuntary turnover and just three percent when looking at only high-performers.
What is a good employee turnover rate? - FULL EPISODE
Is 20 staff turnover high?
Employee Turnover Rate Formula
As a general rule of thumb, a turnover rate higher than 20% is a sign that something is probably wrong with your work environment. That means that more than one out of five people who work with you don't want to be there.
What is a bad employee turnover rate?
A bad employee turnover rate, which usually surpasses 10%, signifies a more frequent departure of staff from the company. This kind of turnover not only disrupts stability but also has a negative impact on morale while incurring significant costs.
What is the acceptable turnover ratio?
For most industries, the ideal inventory turnover ratio will be between 5 and 10, meaning the company will sell and restock inventory roughly every one to two months. For industries with perishable goods, such as florists and grocers, the ideal ratio will be higher to prevent inventory losses to spoilage.
What job has the worst turnover rate?
- Fast food worker.
- Hotel receptionist.
- Childcare teacher.
- Hotel housekeeper.
- Waiter.
- Retail sales associate.
- Technical support specialist.
- Customer service representative.
What is an average turnover rate by industry?
By comparison, the 2022 survey reported an average of 24.7%, and the 2023 survey reported an average of 17.3%. The Retail and Wholesale industry in the US has the highest turnover rate at 24.9%. Meanwhile, the Chemicals industry enjoys one of the lowest turnover rates at just 9.1%.
What is Amazon's turnover rate?
Annual Turnover Rate: Some reports estimate that the annual turnover rate for Amazon's hourly workers is around 100%, meaning that, on average, the company replaces nearly its entire hourly workforce each year.
What turnover rate is burnout?
Research consistently shows a direct correlation between high levels of burnout and increased turnover rates. In fact, a study published by Gallup highlighted that employees who experience burnout at work are 2.6 times more likely to be actively seeking a different job.
What is a normal employee turnover rate?
There are no real hard and fast rules for determining if your rate is high or low, as it depends on the industry. However, you can use the following as a rule of thumb: Low turnover rate: Lower than 15%, the national average. High turnover rate: Higher than 15%, the national average.
What is ideal turnover ratio?
For most industries, a good inventory turnover ratio is between 5 and 10, which indicates that you sell and restock your inventory every 1-2 months.
Is 20% turnover bad?
What Is a good employee retention rate? Generally, the average overall turnover rate for all industries is less than 20%. Rates do vary by industry, however.
What is dysfunctional employee turnover?
Dysfunctional turnover is a type of voluntary turnover, and it happens when your high-performing employees quit at higher rates than your weaker staff. This is called dysfunctional because of its negative impact on end profit since you must keep recruiting and training new staff, which is very costly.
What is a healthy turnover rate for a company?
According to Gallup, 10% turnover is healthy, but every industry and every organization is different.
What profession has the highest turnover rate?
HR professionals understand employee turnover better than most people — and not just because their jobs concern the talent lifecycle of all employees. That's because HR itself has the highest turnover rate of any job function, according to LinkedIn's latest behavioral data from around the world.
What is Walmart's turnover rate?
According to a report by the Washington Center for Equitable Growth, Walmart has one of the highest employee turnover rates in the country, estimated to be around 70 percent. Unsurprisingly, this high turnover rate aligns with the company's reputation for poor working conditions and low wages.
What turnover rate is too high?
Typically, high turnover means 28% of your new employees quit within the first 90 days of their employment. (Again: this presents an enormous cost to companies because they have to constantly repeat a cycle of recruitment, hiring, and training new people.)
What is the normal range of turnover?
What is a good employee turnover rate? On average, every year, a company will experience 18% turnover in its workforce. A business can expect on average to lose 6%of its staff because of reduction in force or terminating them due to poor performance. This is known as involuntary turnover.
What is the average turnover rate in the US?
The most recent data shows that the average U.S. employee turnover rate (due to resignation) has settled at 17.3%, down from the peak of 24.7% during The Great Resignation. Workers put themselves at risk of infection to treat others, spending much of the pandemic isolating from family and working long hours.
Does Google have a high turnover rate?
Yet a recent study conducted by Resume.io shows the average tenure of a Google employee is only 1.3 years, making them one of the top 10 companies where employees apparently don't want to stay. Granted, that's not unusual for tech and software companies. The average tenure at Zoom is also 1.3 years.
What is an acceptable level of staff turnover?
The lack of relevant data and insights to identify room for improvement supports the perception that a staff turnover rate under 10% - 12% is completely ok. This is true if it is lower than the market average. However, what is good can always be improved.