Although turnover rates have been slowly decreasing over the past few years, more and more employers are utilizing post-employment practices. According to the 2011 BenchmarkPro results, more than 60 percent of organizations have a severance policy. This is up from 55.2 just two years ago and 58.8 percent in 2010.
Insurance employers were the most likely to have a severance policy, with more than 70 percent reporting. On the other hand, 45.6 percent of not-for-profit organizations have a defined severance policy. The severance formula also varied. Nearly 43 percent of employers looked at years of experience when determining the severance package for a former employee. However, the results indicated just 4.1 percent of companies used a fixed number of weeks. More than 35 percent of employers utilized both a fixed number of weeks and years of service.
“Employee turnover is a constant issue today as we face a wavering economy,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation's leading compensation and benefits survey data provider. “Companies are more and more developing specific severance policies to keep both parties protected.”
According to the results, the total turnover rate for all industries this year was 14.4 percent. However, these rates varied significantly among industries. In 2011, utilities organizations reported only 6.2 percent total turnover, compared to hospitality with more than 29 percent. Banking and finance employers endured a total turnover rate of 16.5 percent.
About the Survey
BenchmarkPro 2011 contains cross-industry data on more than 350 benchmark job titles. Data was collected from nearly 3,700 employers reporting for more than 18,000 locations across the country. The results provide a comprehensive summary of pay data and pay practices with an effective date of March 1, 2011.
Compdata Surveys is the nation's leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.