Average employee tenure is just over four years1 and has been declining since 2014. As a result, employee retention is a critical factor for organisations of all sizes. Glassdoor, one of the world’s largest job and recruiting sites, has released new survey data2 which reveals employers can increase retention rates by hiring candidates that take time to research a job and company on Glassdoor during their job search.
The survey, which was conducted among 2,500 employed adults, shows that informed candidates who were hired and used Glassdoor in their job search have significantly higher retention rates than hires who did not use Glassdoor. Specifically, employees who used Glassdoor during their job search remained at their employers at a rate 30 percent higher than those who did not use Glassdoor.
“This data shows that people who use Glassdoor when searching and applying to jobs are more likely to stay with their employer once hired because they are more informed, and thus make better decisions as to which job and company is the right fit for them,” said Glassdoor’s Chief Economist, Dr. Andrew Chamberlain. “We also know that employee turnover is expensive, to the point where losing an employee costs around one fifth of that employee’s salary3. Retention, therefore, is a business-critical area impacting every company’s bottom line.”
Retention Rate Is Significantly Higher For Very Small and Very Large Employers
While employees that use Glassdoor have a greater than 30 percent higher retention rate on average, the rate is even higher for very small businesses (1-49 employees), at more than 40 percent. The retention rate is also significantly higher - 40 percent - for organisations with more than 3,000 employees, showing that retention figures are enhanced for both very small and very large employers.
“The potential is there for companies of all sizes to increase retention rates by using Glassdoor to ensure that candidates can research the information they need before and during the hiring process. By doing so, candidates are more informed from the moment they apply to a job, and often turn out to be the quality candidates that employers are trying so hard to attract,” added Dr. Chamberlain.
[Related: How to Recruit Informed Candidates at Scale]
Informed Candidates Can Significantly Help Retention Rates
A separate study by Glassdoor4 also confirms that informed candidates are seen as having a positive impact on employee retention and engagement. The top benefits of hiring an informed candidate, according to hiring decision makers, include better employee retention (42 percent), along with a more productive (42 percent) and more engaged (41 percent) employee. More than one third (37 percent) of hiring decision makers agree that retention rates would increase significantly if new hires were more informed during the hiring process.
To learn more about the value of recruiting and hiring informed candidates, please visit Glassdoor’s informed candidate research.
For more about employee turnover from Glassdoor Economic Research, please see:
Why Do Workers Quit? The Factors That Predict Employee Turnover.
To learn more about how to recruit and hire informed candidates on Glassdoor, visit the Glassdoor Employer Center with a Free Employer Account.
2. EMI Research Solutions, 2017. U.S. sample.
4. Aptitude Research Partners, 2017