2007 Turnover Rates by Industry

As part of the 2007 edition of its Compensation Data Survey, CompData Surveys publishes voluntary turnover rates by industry, an excerpt from which is shared below.  The average turnover rate across all industries is 12.3%, but the rates range widely from a low of 6.5% in Utilities to a high of 21.3% in the Hospitality industry.

2007 Voluntary Turnover Rates by Industry

• Hospitality: 21.3%
• Healthcare: 15.5%
• Real Estate/Construction: 15.4%
• Distribution/Warehouse: 15.3%
• Other*: 15.1%
• Services: 14.7%
• Not-For-Profit: 13.7%
• Financial Services: 13.3%
• Technology: 10.6%
• Manufacturing: 10.2%
• Utilities: 6.5%

*Other includes organizations not otherwise classified, including retail, landscaping, newspaper and other organizations involving communications/media.

Comments

[Frank Giancola]

Ann,

Very interesting turnover statistics. I'm trying to figure out why the turnover is so low in the "deadend" industries like manufacturing and utilities.

Thanks for calling this to our attention. Another reason why reading your blog is so worthwhile.

Frank

[Ann Bares]

Frank:

Good question - I found myself asking similiar ones as I looked at the statistics.

It may be that some of the older more established industries (though not all manufacturing and utility employers can be characterized this way)have a more steady, stable population working for them. I have worked for clients in these industries where average tenure is 7-8 years or more, and there are a lot of 20+ year veterans. But that's only anecdotal evidence.

Thanks for your comment!

[Corey Feldman]

Frank - Industries with strong unions often have low turnover. In a union environment seniority is everything. People end up with golden handcuffs at a certain point.

[David Voros]

what is the turnover rate in higher education?

[Ann Bares]

David:

Higher education was not one of the cuts provided by CompData. You could follow-up with them directly (via the link above) to ask if they have this information. Or, you might want to check with CUPA (College & University Personnal Assocation) (www.cupa.org) to see if they track these statistics.

Good luck!

[ONEiL]

In which country this survey was carried out? Or it is a general statistic? Thanks.

[Ann Bares]

ONEiL:

Based on my understanding of CompData's business and market, I would assume that it is data that represents either the U.S. or North America (U.S. and Canada). You can click through to their site above to learn more.

[Cynthia Oakes]

I am attempting to find the % of turnover would be considered healthy in the healthcare industry. Any ideas?

[Ann Bares]

Cynthia:

Compensation Resources (www.compensationresources.com) publishes a relatively inexpensive turnover survey ($1,000), Watson Wyatt (www.wwds.com) publishes an annual survey on workforce efficiency that includes turnover statistics and includes a health care "cut" of data.

Perhaps one or the other will fit your needs! Good luck!

[Joseph]

I did the math, and the average is 13.78.