With employees being the backbone of any organization’s success, their role in any organization cannot be overemphasized. Employees’ productivity and teamwork influence the overall performance of an organization in different departments such as operations, sales and marketing, and overall management. While the management of a firm would always be ready to suspend or lay off employees who are less productive, such action increases employee turnover in the firm which comes with its negative implications. Employee turnover refers to a situation in which workers exit the firm voluntarily for different reasons or when they are relieved of their duties by the management because of their age or productivity. The graph below shows the average employee turnover rate in the US labor force as estimated by the US Bureau of Labor in 2014.

While many people believe that laying off or termination of employees due to poor performance contribute the highest percentage of employee turnover in the country, the statistics provided by the graph below reveals the contrary. In the above chart, the voluntary decision by employees to leave their workstations for various reasons such as retirement, sickness, or to look for other lucrative opportunities in 2014 accounted for 45 percent of total employee turnover. On the other hand, the percentage of employee turnover due to layoffs and termination accounted for only 17. 2 percent while all other reasons for separation were at 2.6 percent of the overall turnover rate. These three factors contributed an average of 66.3 percent of employee turnover in the US labor market in 2014. The graph also indicates that the average rate of employee retention in the US labor market was 33.7 percent in 2014. These statistics suggest that the probability of an employee in the US to leave an organization either voluntary or involuntary was 0.66 while the rate of retaining the employee was only 0.34 thus indicating that organizations were likely to lose their employees than to retain them. Hence,  organizations must constantly hire and train new employees to fill the gaps left by those who leave these firms.

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