As we’re now into the second half of 2024, we take a look at staff retention, which continues to be a critical focus for organisations worldwide. In an era marked by rapid technological advancements, changing workforce demographics, and evolving employee expectations, retaining top talent has never been more challenging or crucial. We explore the global stats and trends shaping staff retention in 2024, providing insights into how your company can navigate this complex landscape.
The Importance of Staff Retention
Staff retention is vital for several reasons. High turnover rates can lead to increased recruitment and training costs, disrupted productivity, and the loss of institutional knowledge. Moreover, in a competitive job market, the ability to retain skilled employees is a key differentiator that can drive organisational success.
Global Retention Stats for 2024
Recent data highlights the critical state of staff retention worldwide:
Turnover Rates: According to a report by Work Institute, the global turnover rate has risen to approximately 20% in 2024, up from 18% in 2023. This increase underscores the ongoing challenges businesses face in retaining their workforce.
Employee Tenure: The average employee tenure has decreased from 4.5 years in 2022 to 4.2 years in 2024, as reported by the International Labour Organization (ILO). This decline indicates a growing trend of job-hopping, particularly among younger employees.
Retention in Key Industries: Certain industries face higher retention challenges.
Chemicals Industry
In 2023, the Chemicals industry experienced an average turnover rate of around 18%, reflecting various challenges including economic pressures, supply chain disruptions, and heightened competition for skilled talent and 2024 has seen similar turnover rates expected due to ongoing market volatility and the dynamic nature of the global workforce.
According to the KPMG Global Economic Outlook for Chemicals (2024) this rate of turnover is influenced by competitive job markets and the demand for specialised skills in various sectors within the industry. Economic conditions, such as inflation and supply chain disruptions, continue to influence retention strategies. Companies are focusing on digital transformation and operational efficiency to navigate these challenges effectively.
The industry also faces ongoing skill shortages, particularly in technical and engineering roles as reported in the Deloitte Chemical Industry Outlook (2024).
Paints & Coatings Industry
Staff turnover in the paints & coatings industry have been influenced by several factors, again driven by the high demand for skilled talent, economic pressures, and the evolving nature of work environments. In 2023, the turnover rate in this industry was estimated to be around 17%, slightly higher than the average for the manufacturing sector. Due to ongoing market volatility and the competitive landscape for talent, this is expected to increase slightly throughout the remainder of 2024.
The paints & coatings market size is expected to see robust growth in the next few years, in large part due to the adoption of green and sustainable practices, swift urbanisation, economic development in emerging markets, emphasis on infrastructure renewal, and adherence to stringent safety standards. Key trends predicted include the integration of digitalisation in manufacturing, the utilisation of smart coatings and nanotechnology, continuous tech advancements, the emergence of bio-based and sustainable coatings, and a heightened focus on high-performance coatings.
Each of these trends are going to offer new job roles which could increase staff turnover as personal development and the desire to learn new skills can be gained in these new disciplines.
Life Sciences Industry
The average annual turnover rate in the life sciences sector remains high, with a significant portion of employees actively seeking new opportunities. Approximately 67% of professionals indicated plans to look for a new job within the next 12 months according to the BioSpace Community Survey (2024).
Despite the high turnover rates, skill shortages continue to be a major challenge. Companies are finding it difficult to hire and retain talent with the specialized skills needed in areas such as biotechnology and pharmaceuticals. Additionally, 66% of companies are experimenting with generative AI, which is becoming a pivotal tool from automating tasks to enhancing drug discovery, according to the Deloitte Global Life Sciences Sector Outlook (2024). This technological shift aims to streamline operations and improve efficiency, which will potentially affect staff retention by changing job roles and requirements.
Lastly, employee satisfaction in this sector is heavily influenced by career development opportunities, compensation, and work-life balance. Innovative programs such as tuition reimbursement and rotational leadership programs help keep staff turnover low by fostering continuous learning and engagement.
Key Trends Shaping Staff Retention in 2024
Several key trends are influencing staff retention strategies this year:
Remote and Hybrid Work Models: The shift to remote and hybrid work models, accelerated by the COVID-19 pandemic, continues to shape employee expectations. A survey by McKinsey & Company found that 52% of employees prefer hybrid work arrangements, with flexibility becoming a significant factor in job satisfaction and retention. Companies that fail to offer flexible working options risk higher turnover rates.
Employee Well-being and Mental Health: Employee well-being has taken centre stage in 2024. Organisations are increasingly recognising the link between well-being and retention. A global survey by Deloitte revealed that 80% of employees consider mental health support a key factor in their decision to stay with their current employer. Companies investing in comprehensive well-being programs, including mental health resources and work-life balance initiatives, are seeing improved retention rates.
Learning and Development Opportunities: Continuous learning and career development opportunities remain crucial for employee retention. LinkedIn's 2024 Workplace Learning Report indicates that 94% of employees would stay longer at a company if it invested in their career growth. Companies are responding by offering personalised learning paths, mentorship programs, and opportunities for upskilling and reskilling.
Diversity, Equity and Inclusion (DEI): DEI initiatives are increasingly important for retaining a diverse workforce. Research by Glassdoor shows that 76% of job seekers and employees consider a diverse workforce an essential factor when evaluating companies and job offers. In 2024, organisations with robust DEI programs are better positioned to attract and retain top talent.
Recognition and Rewards: Recognition and rewards systems continue to be vital for employee retention. A study by Gallup found that employees who feel adequately recognised are five times more likely to stay with their current employer. In 2024, companies are leveraging technology to implement more personalised and timely recognition programs.
Strategies for Effective Staff Retention
To navigate the complexities of staff retention in 2024, consider the following strategies:
Offer Competitive Compensation and Benefits: Ensure that salary packages and benefits are competitive and reflective of industry standards. Tailored benefits that address the specific needs of employees, such as flexible working hours or remote work options, can make a substantial difference.
Invest in Employee Development: Provide robust professional development programs, including certifications, training, and educational support. Clear career progression pathways help employees envision a long-term future with the company.
Foster a Positive Work Environment: Promote a supportive and inclusive work environment that values diversity and encourages collaboration. Regular communication, team-building activities, and initiatives that promote a collaborative and inclusive workplace culture can strengthen employee engagement.
Prioritise Employee Well-being: Implement comprehensive well-being programs that include mental health resources and work-life balance initiatives. A supportive work environment that acknowledges and accommodates personal commitments helps in building loyalty among employees.