Yet more evidence that employee turnover is not reducing any time soon

Much has been written in the press over the last 12 months about the Great Resignation and the significant increase in employee turnover. Many have speculated that trend is a direct result of the COVID pandemic - a pent up demand for new roles following a period of stagnation. But there is evidence to show that employee turnover was increasing before COVID turned the world upside down. According to data from the US Bureau of Labor Statistics, the share of workers voluntarily leaving jobs has risen year on year since 2009 and, in fact, a reduction in leavers in 2020 as caused by COVID was nothing but a blip in an otherwise clear upwards trend. 

The more worrying statistics today for talent leaders will be those focused on inflation. A recent report on graduate hiring showed that not only is graduate turnover at an 11 year high but with average pay rising at 3% and inflation rising today at >6% graduates effectively earn less today then they did in 2008/2009. The sad reality for many workers, in the face of increasing inflation and an increased cost of living, is that in order to secure better pay they are likely to need to change employers.  

High employee turnover is likely to be with us for many years and the result will be increased pressure on Talent Acquisition teams and yet more competition for skills and talent. The companies that will win will be those focused on long-term talent strategies. That means investing in early talent programs, investing in reskilling and upskilling existing talent, investing in better internal mobility programs and it means a smarter approach to external hiring.  

Talent Acquisition leaders today are struggling to deliver the talent that their businesses need but they need to find space and capacity to focus on these strategic imperatives, without that focus and impact they will struggle for years to come.