Voluntary Turnover: How Employee Listening Reduces It

Voluntary turnover hits harder than other forms of attrition because the employees who choose to leave are often your most competent performers. A strategic employee listening plan can help diagnose the causes of voluntary turnover so that effective strategies can be designed to tackle it.

What are the costs of voluntary turnover?

It’s well-known that employee turnover represents a significant financial burden on organizations. Estimates suggest that recruiting and training a new employee can cost anywhere from 2x to 4x the departing employee's annual salary. For a mid-size company of 100 employees, each earning an average salary of $50,000, this could amount to a staggering $2.6 million in turnover costs per annum.

The time it takes for a new hire to reach full productivity, in some cases as long as 9-12 months, represents less obvious costs. Consider the potential gains that could have been made in this period: projects that could have been completed, products launched, and profits generated had the experienced employee stayed in the role.

Beyond the departing employee, voluntary turnover creates ripple effects across teams. Remaining employees absorb extra workload, institutional knowledge walks out the door, and team cohesion suffers. Losing top performers due to voluntary turnover can continue to impact the business's bottom line long after a replacement has been hired.

How does disengagement increase voluntary turnover risk?

For most employees, there is a honeymoon period at the start of a new job, when engagement is high. However, over time, dissatisfaction may set in and engagement may wane. Research conducted by Perceptyx indicates that nearly 50% of the domestic workforce can be considered at least somewhat disengaged. Their level of disengagement places them in one of two critical persona-based categories:

• "The Disconnected" (34% of employees): This group exhibits low motivation and high job-seeking behaviors.

• "The Neglected" (16% of employees): This group is actively seeking opportunities elsewhere due to their unmet needs in the workplace."

Why do turnover causes differ by employee tenure?

The causes of a drop in engagement, and a corresponding increase in voluntary turnover risk, often differ depending on whether the employee is new to an organization or more seasoned.

The first 90 days of employment are a critical time in the employee journey, as new hires begin to learn their job duties, make connections with their manager and teammates, and assimilate into the company culture. Having an onboarding survey cadence in place can be helpful in uncovering pain points, but these surveys must be administered early in the employee’s tenure. The timing of the onboarding survey should also coincide with observed turnover trends. For example, if early turnover is occurring at around the 60-day mark, then a series of onboarding surveys could be administered earlier (e.g., 15 days and 45 days post-hire) to identify systemic concerns, as well as later (e.g., 90 days post-hire) to understand the experience of employees who have successfully made it through this period.

What causes voluntary turnover in the first 90 days?

1. Problems during onboarding and training: Employees who quit early are increasingly likely to quit very early in their tenure, sometimes within the first 30 days. To maximize success in training, the hiring process should include a skills assessment to ensure employees have the basic skills to be successful. Assigning a mentor or nesting supervisor can be helpful in some situations.

2. Mismatched expectations: Many new hires who quit within their first 90 days report that the company culture was not as expected. Even more commonly, there can be mismatched role expectations. Evaluating job fit during the hiring process, including whether a candidate's skills, personality, and expectations align with the role, can reduce early attrition before it starts.Ensure the recruitment process includes a realistic job preview. Written job descriptions are helpful, but immersion experiences can be especially powerful, including job shadowing opportunities. Video testimonials from employees are compelling and should include clear communication about both the rewards and challenges of the job.

3. Lack of sense of belonging: While remote workers may be more at risk, on-site workers are not immune to this problem. Employees feel a sense of belonging when they believe they can bring their authentic self to work. Social connections are also important, so include opportunities for new employees to collaborate and socialize. Belonging is also driven by a sense that employees feel not only listened to, but that their feedback will be acted on. Ensure right from the start that you involve and inform employees in decisions affecting them, and solicit their feedback, when possible.

How do manager relationships and belonging affect retention?

As employees settle into their roles, they are gaining confidence and becoming productive members of the team. At this point, organizations have made significant investments in new employees in the form of onboarding, training, coaching, and mentoring. At this stage, organizations have invested significantly in onboarding, training, and coaching — and retaining that employee directly protects that investment. When a high-performing employee leaves at this stage, the organization absorbs the full cost of that investment with no return.

Managers play a major role in motivating or preventing voluntary turnover, with research from Perceptyx revealing that 24% of respondents believe they are working for their “worst boss ever.” Additional Perceptyx research has found that 16% of the employees sampled in the Perceptyx Benchmark Database can be classified as “Neglected” and thus 7x as likely to leave the organization in the next 12 months (they are also 1.7x as likely to have applied elsewhere in the past year).

Employee listening surveys (including both longer census and shorter pulse surveys) can help organizations better understand and take action on problem areas that might lead to future quitting.

What causes voluntary turnover after the first 90 days?

1. Poor Relationship with a Manager: Perceptyx research has shown that employees who rate their manager relationship as poor or below average are twice as likely to leave versus employees who rate their manager relationship as good or excellent (17.8% versus 9.6%). Enable managers to become retention champions. Train them to be alert for signs an employee may be about to leave. Coach them on how to have “stay conversations.” This type of conversation helps managers understand what matters most to each employee (such as recognition or empowerment), so that they can better support their direct reports.

2. Stalled Career: If employees don’t feel they can accomplish their career objectives, they will look elsewhere. Career growth matters across every demographic. Research shows that the vast majority of employees, regardless of generation, rank professional development opportunities as important to them. And as Perceptyx research has shown, career development is more important to employees than compensation. It's about more than just formal training and getting to the next level. It can involve stretch assignments with the focus of developing skills that will serve the employee now and going forward, as well as lateral transfers and cross-functional collaborations. It’s also important for managers to connect employees’ work and skills to the company’s vision and objectives, so that employees feel they belong, both currently and in the future. Related to manager relationships, train managers to support career development through recognition, performance feedback, and accountability. AI-powered coaching from Perceptyx can offer coaching at scale in areas related to feedback and recognition.

3. Work/Life Balance: In the post-pandemic era, work-life balance and mental well-being have surfaced as pressing priorities for employees. Offering flexibility is key and can partially mitigate heavy workloads. Flexible work schedules are an obvious solution, but if that is not possible, then seek other areas in which flexibility can be offered (e.g., choice of assignments). Have frank conversations about workload and prioritization, and involve employees in those discussions and decisions, whenever and wherever possible.

For maximum impact, all listening data should be integrated across the employee lifecycle. The final tool in a lifecycle survey program, a well-designed exit survey, can capture point-in-time data on reasons for leaving. This can potentially lead to new areas of insight to further illuminate and refine the organization’s retention strategies.

How employee listening can help address voluntary turnover

The data is consistent across the employee lifecycle: organizations that listen continuously and act on feedback reduce voluntary turnover. Perceptyx helps HR teams build listening programs that identify the root causes of attrition — from onboarding gaps to manager relationship breakdowns — and take action before employees leave. Perceptyx partners with HR leaders to build and execute listening programs that directly reduce voluntary turnover.

We can help you create a specialized listening program that targets the root causes of voluntary turnover in your organization. Our employee listening platform connects survey data to the specific sentiment, concerns, and aspirations driving attrition in your workforce. Take proactive measures to improve your work environment and ensure your employees feel heard, supported, and valued.

Frequently asked questions

What is voluntary turnover?

Voluntary turnover happens when an employee chooses to leave their job on their own terms. Common reasons include accepting a new offer, switching careers, retiring, or feeling dissatisfied with their role, pay, or manager. It differs from involuntary turnover, where the employer ends the employment through layoffs or termination.

How do you calculate voluntary turnover rate?

Divide the number of employees who voluntarily left during a set period by your average headcount during that same period, then multiply by 100.

Formula: (Voluntary departures ÷ Average headcount) × 100

For example, if 10 employees resigned and your average headcount was 200, your voluntary turnover rate is 5%.

What is a good voluntary turnover rate?

There is no single benchmark that fits every organization. Rates below 10% annually are often seen as healthy in stable, white-collar industries. High-turnover sectors like retail, hospitality, and food service commonly see rates of 30–50% or higher. Comparing your rate against industry peers gives you a more useful target than a universal standard.

Does voluntary turnover include retirement?

Yes. Voluntary turnover covers any separation the employee initiates, including resignation, retirement, or leaving for personal reasons. The defining factor is that the employee made the choice to leave, not the employer.

What percentage of employees are at risk of voluntary turnover?

Research conducted by Perceptyx indicates that nearly 50% of the domestic workforce can be considered at least somewhat disengaged, placing them at elevated risk for voluntary turnover. This includes 34% classified as "The Disconnected" (exhibiting low motivation and high job-seeking behaviors) and 16% classified as "The Neglected" (actively seeking opportunities elsewhere). Employees in "The Neglected" category are 7x as likely to leave the organization in the next 12 months and 1.7x as likely to have applied elsewhere in the past year.

How much does manager quality impact voluntary turnover?

Perceptyx research has shown that employees who rate their manager relationship as poor or below average are twice as likely to leave versus employees who rate their manager relationship as good or excellent (17.8% versus 9.6%). Additionally, 24% of respondents in Perceptyx research believe they are working for their "worst boss ever," highlighting the critical role managers play in retention. Poor manager relationships represent one of the most significant and actionable drivers of voluntary turnover.

When are employees most likely to leave voluntarily?

The first 90 days of employment represent a critical window for voluntary turnover risk. Employees who quit early are increasingly likely to quit very early in their tenure, sometimes within the first 30 days. Common causes during this period include problems during onboarding and training, mismatched expectations about role or culture, and lack of sense of belonging. Organizations should implement onboarding survey cadences that coincide with observed turnover trends — for example, if early turnover occurs around the 60-day mark, surveys should be administered at 15 days, 45 days, and 90 days post-hire to identify and address systemic concerns.

Is career development or compensation more important for retention?

Perceptyx research has shown that career development is more important to employees than compensation when it comes to retention. The vast majority of employees, regardless of generation, rank professional development opportunities as important to them. Career development encompasses more than formal training — it includes stretch assignments focused on skill development, lateral transfers, cross-functional collaborations, and managers connecting employees' work to the company's vision and objectives. Organizations that prioritize career growth see measurably lower voluntary turnover rates.