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Employee Turnover by Industries

April 17, 2013Background Screening, Employment Resources, Human ResourcesBy George Ramos

Posted on April 17, 2013 by cfarzad

Reduce Employee Turnover by conducting employment background checks on all new hires. Certain industries experience higher turnover then others, retail for example has a 30% turnover rate. Below are turnover percentages based on industry:

  • Retail 30%
  • Utilities 14%
  • Travel/Hotel 26%
  • Health Svc 20%
  • Government 15%

*Bureau of National Affairs Inc.

Companies invest a great deal of time, capital, and resources too effectively on board their new hires. However if companies lack an effective background screening program than the money spent to train and onboard is wasted.

Continuity amongst employees is a major driver to increase profitability and improve the overall culture of a business. Being a team player is what every hiring manager desires, but if there is high turnover then employees aren’t able to build those strong business relationships.

Case Study

A large clothing retailer was experiencing unusually long delays in receiving completed employment background screening reports from their background provider. On average, each completed report was taking up to 5 business days. Due to the delay in receiving background results, they couldn’t place employees fast enough and qualified applicants were beginning to take employment offers from their competitors. Their background screening provider was directly affecting their efficiency at filling vital positions within their company. The clothing retailer reached out to Employers Choice Online and explained the issues they were having with their background vendor.

Employers Choice Screening did a complete analysis on how the company was conducting their employment background checks through their current provider.Employers Choice Screening determined that the searches being conducted weren’t comprehensive in nature and the turnaround time was unacceptable. After a month of conducting employment background checks through Employers Choice Screening, the clothing retailer was receiving completed background reports in 35.4 hours on average! This drastic improvement allowed for the employer to hire rapidly, add a drug screening program for all new hires and utilize industry-specific searches for specific positions.

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Background ChecksEmployee TurnoverIndustry Tunrover Rates
About the author

George Ramos

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