• LinkedIn analyzed 32 million LinkedIn profiles to produce our own “retention curve”
It’s no secret that employee turnover is expensive. Earlier this year, a Gallup Poll reported the cost of turnover to be $1 trillion. Factor in leadership time, loss of momentum, customer relationships– the dollars rise and the impact expands. It’s clear that companies need to make a proactive investment in retention.
Through LinkedIn’s rich data that takes into account the actions and experiences of millions of members, our data suggests there’s a 76% chance of an employee still being at a company after 12 months there. After two years, there’s a 59% likelihood, and after three years, a 48% chance. We took a look at the factors linked to this decline:
- Employees who change positions internally stay way longer—even if they’re not getting a promotion : After three years, someone who was promoted is 70% likely to be there, while someone who moved laterally has a 65% chance. In comparison, someone who stays in their same position has only a 45% chance of still being at that company after three years.
- Companies with highly-rated management saw better retention : Companies with well-rated management were 43% more likely to keep an employee for three years compared to those with poor ratings.
- Empowered employees are loyal employees : Companies perceived to be places where “employees have influence” get longer tenures out of their workers. After three years, there’s a 47% chance of an employee sticking with them. At companies seen as less-empowering, employees only have a 35% of celebrating their three-year work anniversary.
When you’ve worked hard to land talented people, you don’t want to see them flying out the door. You want to keep them engaged. After all, a disengaged employee, according to Glint research, is 12x more likely to leave in the next 12 months than an engaged employee. Being intentional about employee mobility, effective management, and employee empowerment could be the secret to employees that stay longer.
