Top 3 Myths About Employee Turnover Debunked

Everything you know about employee turnover rate is just plain wrong, according to a recent research.

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Everything you know about employee turnover is wrong

The end of a year is a common time when most HR professionals are calculating their annually HR metrics. One of the most commonly used HR metrics is a dreaded employee turnover rate. Are you a bit scared to calculate your employee turnover rate?

If you are, this is because everything you know about employee turnover is wrong.

Yes, that’s right. According to a recent research conducted by Work Institute, everything we think we knew about employee turnover is just plain wrong. The company has released its 2018 Retention Report, the only known one of its kind, marking its second study of national workplace turnover and retention. Using a scientifically valid methodology and data from over 234,000 exit interviews, this report uncovers the root causes of turnover and debunks common employee turnover myths.  

Top 3 myths about employee turnover

Here are the top 3 myths about employee turnover that are completely wrong:

Myth #1: Employee turnover is inherently bad

Employee turnover is usually mentioned in a negative context. This is because of high costs related to high turnover rates. According to The Society for Human Resource Management (SHRM) research, direct replacement costs can reach as high as 50%-60% of an employee’s annual salary.

However, employee turnover isn’t necessarily a negative thing. If the high turnover is the consequence of the fact that poor performers are leaving a company, it can actually be a good thing. It can mean that your company is keeping only A-players, not wasting time and money on poor performers, which is definitely a good thing.

Myth #2: Employee turnover is a normal thing and can’t be prevented

You might think that an employee turnover is a normal common process that happens in all companies. Especially in the last few years when the unemployment rates are lower than ever and candidates are in demand. However, this is only partially correct.

Work Institute estimated that 42 million, or one in four, employees will leave their jobs in 2018. Work Institute has also found that nearly 77 percent, or three-fourths, of that turnover, could be prevented by employers. Their 2018 Retention Report revealed the 50 most important reasons employees decided to leave their jobs and grouped them into 10 categories, seven of which are considered more preventable by employers.

Myth #3: Most employees leave because of money

You might think that it is only common sense that your employees leave because they have been offered a larger salary by some of your competitors. A salary that big that you can’t compete with it. However, your assumption is probably wrong, according to Work Institute.

Work Institute has found that the top five categories of reasons employees leave their jobs are:

  • Career Development – No opportunity to grow in a preferred job and career. (21%)
  • Work-Life Balance – Better work-life balance, which includes more favorable schedules, shorter commute times and scheduling flexibility. (13%)
  • Manager Behavior – Unprofessional or unsupportive managers. (11%)
  • Well-Being – Personal or family health issues. (9%)
  • Compensation and Benefits – Pay was cited more often than benefits. (9%).

So there you have it. Now you know the truth. Are you ready to calculate your own employee turnover rate for 2018?

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List of The Most Important Career Page Metrics

Here is the list of the most important career page metrics that will help you evaluate, optimize and improve your career page performance.

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Career page metrics for dummies 🙂

Career page metrics are among the most important recruitment metrics you should be tracking.

However, most HR professionals still shy away from career page metrics, thinking that they don’t have the time, resources and knowledge to handle them.

But they couldn’t be further away from the truth!

Tracking your career page metrics is very simple and easy these days.

Your modern recruitment software will do it for you!

This is just one of the many benefits of recruitment software: they automatically track the most important hiring metrics – including your career site metrics!

In other words, every HR professional can now easily dive into data-driven recruiting.

Tracking and measuring your career page metrics will enable you to evaluate, optimize and improve your career page performance.

To help you get started, we created a list of the most important career page metrics you should track on regular basis.

The list of the most important career page metrics

Here is the list of the most important career page metrics you should track on regular basis:

1. Number of visitors

This metrics will tell you how many people visited your career site in a certain period of time (during a day, week, month or even a year).

2. Source of visitors   

This metric will tell you the number of visitors that came to your career site from different sources, such as (Google, job boards, social media, email, etc.)

3. Source of applicants

This metric will tell you the number of applicants that came to your career site from different sources.

4. Application form abandon rate

This metrics will tell you how many people started filling in your application form but never actually submitted it.

5. Talent Network conversion rate

This metric will tell you how many people converted on your Talent Network landing page.

6. Average session duration

This metric will tell you what is the average length of time that visitors spend on your career site.

7. Career page bounce rate

This metric will tell you the percentage of visitors who come to your career site and immediately leave without doing anything.

8. Application form return rate

This metric will tell you how many of candidates that have abandoned application form return and complete it.

9. Career site paid traffic

This metric will tell you how many visitors come to your career site from paid advertising campaigns (on Google or social media).

10. Career site organic traffic

This metric will tell you how many visitors come to your career site directly from the search engines.

[INFOGRAPHIC] 6 Types of Recruitment Metrics You Should Know About

This infographic presents 6 main types of recruitment metrics every HR professional should track and measure.

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The importance of recruitment metrics

Tracking recruiting metrics is the key to HR analytics and data-driven recruiting.

In today’s data-driven culture, most successful recruiters are those who make decisions based on data acquired through HR technology such as Applicants Tracking Systems and Recruitment Marketing Platforms.

According to LinkedIn research, HR teams who track and measure recruiting metrics are 2 times more likely to find talent faster and more efficiently.

This is why HR professionals use hiring metrics – to make better and more informed decisions and find and hire the ideal job candidate easier and faster.

Types of recruitment metrics

Here is the list of 6 main recruitment metrics types:

  1. Recruitment Marketing metrics
  2. Hiring Velocity metrics
  3. Hiring Expenses metrics
  4. Hiring Quality metrics
  5. Hiring Source metrics
  6. Referral metrics

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1. Recruitment Marketing metrics

➡️ Definition

Recruitment Marketing metrics is a group of recruitment metrics that measure the results and effectiveness of your Recruitment Marketing strategy.

2. Hiring Velocity metrics

➡️ Definition

Hiring Velocity metrics is a group of recruitment metrics that measure the speed and duration of your hiring process.

3. Hiring Expenses metrics

➡️ Definition

Hiring Expenses metrics is a group of recruitment metrics that measure the cost of your hiring process.

4. Hiring Quality

➡️ Definition

Hiring Quality metrics is a group of recruitment metrics that measure the quality of the candidates you hire.

5. Hiring Source metrics

➡️ Definition

Hiring Source metrics is a group of recruitment metrics that measure where your candidates come from.

6. Referral metrics

➡️ Definition

Referral metrics is a group of recruitment metrics that measure the results and effectiveness of your employee referral programs.