Staffing Employee Turnover and Tenure: Reduced Labor Market Churn Has Depressed Turnover for Temporary and Contract Employees
- The turnover rate for temporary and contract employees edged down slightly in 2023.
- The decrease in turnover reflects a longer tenure for the average staffing employee.
- Staffing companies are experiencing lower costs of recruiting and other such outlays.
The turnover rate for temporary and contract employees was 414% in 2023, down from 419% in 2022 but nearly even with the rate of 415% in 2021. Average tenure for staffing employment inched up to 10.1 weeks in 2023 from 10.0 weeks in 2022. Employee turnover is an important statistic for staffing firms as it reflects how often staffing companies need to hire new employees. A high turnover rate means that employees average a shorter tenure, however; when the turnover rate decreases, it means that average employee tenure is longer. The lower the turnover rate, the lower the cost of recruiting, new-hire administrative expenses, training, and any other outlays associated with replacing employees. See examples and use the interactive calculator at americanstaffing.net/turnover.
