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Compensation Resources, Inc. Releases Its 2004 Turnover Survey
Upper Saddle River, N.J. - September 2004 - Compensation Resources, Inc. has released the results of its 2004 Turnover Survey. The purpose of this study was to obtain turnover statistics and trends. Data was compiled from survey questions that were developed by CRI and distributed to companies in over ten industrial classifications, in addition to Not-for-Profit organizations. The survey sampled turnover data from a variety of organizations, collected in July and August 2004.
Results indicated that from May 31, 2003 to May 31, 2004, the average voluntary turnover rate was 11.3%. The majority of respondents indicated this rate has either increased or remained the same, while only 20.9% of participants indicated this rate has decreased in the prior 12-month period. Of all employee functional groups, Administrative level and Production level positions show the highest voluntary turnover rates; however, according to survey participants Administrative and Production level positions also take the shortest amount of time to fill. Overall, the cost of turnover to organizations is on average ½ x the employee’s salary to 1x the employee’s salary. Lastly, participants indicated that employees usually leave the organization because there is better pay and/or benefits offered elsewhere, better opportunities/increased responsibilities offered somewhere else, or involuntarily due to company layoff. Some additional highlights:
Industry Voluntary Overall
All Industries 11.3% 17.6%
Business Services 20.7% 26.5%
Engineering 5.5% 8.4%
Financial/Insurance 11.2% 17.5%
Healthcare 11.1% 18.0%
High
Technology 10.8% 21.0%
Manufacturing 4.2% 7.4%
Not-for-Profit 11.7% 18.9%
Other 12.0% 20.5%
Pharmaceutical 8.1% 13.5%
Sales 13.4% 26.8%
Utility/Energy 3.6% 6.4%
Although some turnover is inevitable, organizations must take steps to control turnover, particularly that caused by organizational factors such as poor supervision, inadequate training, unfair pay systems, lack of communication, and inconsistent policies. Human resource activities should be examined as part of the turnover control efforts.
Compensation Resources, Inc. (CRI) provides compensation and human resource consulting to start-up, emerging, and middle market companies. CRI specializes in Executive Compensation, Board Advisory Services, Salary Administration, Performance Management, Salary Administration, Sales Compensation, and Expert Witness services.
For more information on our consulting services, please contact us at (201) 934-0505 or visit our website at www.compensationresources.com.
About The Author
Paul R. Dorf, Ph.D., APD
Compensation Resources, Inc. provides compensation and human resource consulting to mid-size and Fortune 500 clients as well as public, private, family-owned and emerging companies. CRI specializes in Executive Compensation, Salary Administration, Performance Management, Sales Compensation, and expert witness services. Our reference library boasts over 4,800 surveys.
ats@compensationresources.com
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