Attrition and Retention Consortium 2017 Benchmark Conference Call (2016 Retention Data)
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- Emory Dawson
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1 Attrition and Retention Consortium 2017 Benchmark Conference Call (2016 Retention Data) Professor and Department Chair Rutgers University & Distinguished Research Environment Professor Warwick Business School University of Warwick
2 EXECUTIVE SUMMARY EXEMPT TURNOVER OBSERVATIONS Voluntary turnover rate levelling off Slightly down after 3 years of rising Who is more likely to quit? Shorter tenure Sales & Customer Service Women Non-White Younger Individual Contributors Defined Contribution Retirement Plans 2
3 EXECUTIVE SUMMARY EXEMPT TURNOVER OBSERVATIONS Absolute quit rates remain modest, but firm year-over-year increases over 5 in some cases On-boarding and socializing newcomers remains an issue Continued issues with retaining women and minorities Especially newcomer women and African-Americans Those who identify as Two or more races higher quit rates Still a cohort spike in quits, now at year 7 The gap between high performer and non-high performer quit rates continues to narrow really no difference The shift from defined benefit to defined contribution retirement plans continues Non-US exempt populations remaining pretty stable Non-US exempt quit rate is slightly down from last year Similar issues with newcomers India remains an important hot spot 3
4 Firm Report Layout Defining Quit Rates Data Provided by Your Company Employment Status Employees Classified as B = Still Employed Q = Voluntary Quit R = Retirement V = Voluntary Layoff L = Involuntary Layoff T = Other Termination - Base Population = Sum (B + Q + R + V + L +T) QUIT RATE = SUM(Q) SUM(B + Q + R+ V + L +T) X 100 4
5 Calculation of Weighted Average Voluntary Quit Rate Weighted (Individual-Level) Average Quit Rate = Total Number of Quits for All Firms Total Base Population for All Firms x 100 Unweighted (Firm-Level) Average Quit Rate = (Quit Rates for Each Firm) Total Number of Firms x 100 5
6 ARC QUERY TOOL 6
7 ALL ARC DATA 11.2% of Customer Service Employees with Less than 1 Yr Quit 6.62% of Software Engineers with 2 Years of Service Quit ARC 2012 CONFERENCE 7
8 ARC 2016 FIRM PARTICIPANTS N=23 firms (2015 = 21 firms; 2014 = 21 firms; 2013 = 21 firms; 2012 = 23 firms) 3M Allstate Insurance BAE Systems BNSF Railway Boeing Caterpillar Citizen s Financial Cummins Dow Chemical Eli Lilly Flowserve Ford Motor Company General Motors John Deere Lockheed Martin Mitre Monsanto Nationwide Parker Hannifin Raytheon State Farm Union Pacific Weyerhauser 8
9 ARC 2016 FIRM PARTICIPANTS (all employees) N = 1,216, = 1,229, = 1,204, = 1,232, % % Quit Rate Quit Rate = 4.2% 2015 Quit Rate = 4.4% 2014 Quit Rate = 4.1% 2013 Quit Rate = 3.2% 2012 Quite Rate = 3.1% * weighted/individual level 2.5% % % Quit Rate 9
10 ARC 2016 US EXEMPT WORKFORCE N = 552, = 544, = 563, 116 (21 firms) 2013 = 559, 341 (21 firms) 2012 = 621,554 (23 firms) 4.5% % % Quit Rate 2015 Quit Rate = 3.7% 2014 Quit Rate = 3.8% 2014 Quit Rate = 3.7% 2013 Quit Rate = 3.2% 2012 Quite Rate = 3.1% * weighted/individual level % % Quit Rate 10
11 Total Separations Quits ARC 2013 CONFERENCE 11
12 US Exempt Demographic Attributes Sex Women: 30.5% (2015: 30.2%; 2014: 31.3%; 2013: 32.; 2012: 30.3%) Men: 69.4% (2015: 69.8%; 2014: 68.7%; 2013: 68.; 2012: 64.6%) Unknown: <.1% Job Performance High Performers: 12. (2015: 13.7%; 2014: 14.8%; 2013: 13.1%; 2012: 15.9%) Not High Perform: 54.6% (2015: 64.6%; 2014: 68.8%; 2013: 73.5%; 2012: 68.5%) Unknown: 33.5% (2015: 21.7%; 2014: 16.5%; 2013: 13.4%) Ethnicity Caucasians: 76.4% (2015: 74.; 2014: 77.1%; 2013: 78.7%; 2012: 71.3%) African Americans: 7.1% (2015: 7.2%; 2014: 7.; 2013: 6.8%; 2012: 5.9%) Hispanic Americans: 5.6% (2015: 5.4%; 2014: 5.4%; 2013: 4.9%; 2012: 4.5%) Asian Americans: 8.6% (2015: 8.4%; 2014: 7.9%; 2013: 7.8%; 2012: 6.4%) Native Americans: 0.4% (2015: 0.4%; 2014: 0.5%; 2013: 0.5%; 2012: 0.4%) Hawaii - Pacific Island: 0.2% (2015: 0.2%; 2014: 0.2%; 2013: 0.1%; 2012: 0.1%) Multiracial: 1.4% (2015: 4.1%; 2014: 1.1%; 2013: 0.9%; 2012: 0.8%) 12
13 US Exempt Demographics Tenure Frequency (Years) (%) (%) (%) (%) (%) <
14 US Exempt Demographics Age Frequency (Years) (%) (%) (%) (%) (%) <= Unkno <
15 US Exempt Demographics US Region Frequency (%) (%) (%) (%) (%) Midwest Northeast South West Unknown
16 US EXEMPT DEMOGRAPHICS Job Type Frequency (%) (%) (%) (%) (%) 01 Customer Service 55, Manufacturing Ops/Engr 57, Manufacturing Ops/Supv 20, Engineering 153, Software Engineering 23, Information Technology 50, Research 17, Sales 24, Marketing 13, Supply Chain/Purchasing 28, Financial Customer Service 5, Finance 27, Human Resources 12, Corp Affairs / 0.6 3,390 Communication Legal 6, Other Exempt 52,
17 US EXEMPT DEMOGRAPHICS Job Level Frequency (%) (%) (%) (%) (%) Executive Individual Contributors Individual Contributors (Union) NA NA Managers/Supervisors Unknown/NA Retirement Type Frequency (%) (%) (%) (%) (%) Defined Benefits Defined Contributions Unknown/NA
18 Total Turnover Rate Firm Total Turnover Rate for US Exempt Workforce Voluntary Quits, Terms, Layoffs, Retirements 18% 16% 14% 12% 1 8% 6% 4% 4.8% 5.4% 4.4% 3.8% %10.6% 8.8% % 6.8% 7.4% 7.7% 7.7% 7.9% 7.9% % 11.9% 12.4% % 14.7% 2% RR OO II UU EE SS AA LL BB MM HH GG NN CC ARC PP KK DD TT VV WW QQ FF JJ ARC FIRMS ARC = Unweighted Average of All Firm Quit Rates ARC 2016 Turnover Rate = 7.9% ARC 2015 Turnover Rate = 9.2% ARC 2014 Turnover Rate = 8.6% ARC 2013 Turnover Rate = 7.9% ARC 2012 Turnover Rate = 7.4% * weighted/individual level 18
19 Termination Rates Firm Non-Quit Termination Rates US Exempt Workforce 12% 1 8% 6% 4% 2% 5.5%5.6%5.6% 5.9%6.3% 6.4% 4.8% 3.7% 3.9%4.1%4.3%4.5%4.7% 1.7%2.2%2.3%2.5% 2.8%2.8%2.9% 1.2% 8.2% 10.3% 11.4% RR UU EE II BB PP CC OO HH NN AA GG SS ARC LL MM TT QQ DD VV KK FF WW JJ ARC = Unweighted Average of All Firm Quit Rates ARC FIRMS ARC 2016 Non-Quit Turnover Rate = 4.2% ARC 2015 Non-Quit Turnover Rate = 5.4% ARC 2014 Non-Quit Turnover Rate = 4.8% ARC 2013 Non-Quit Turnover Rate = 4.7% ARC 2012 Non-Quit Turnover Rate = 4.4% * weighted/individual level 19
20 Voluntary Quit Rates 1 9% Firm Voluntary Quit Rates US Exempt Workforce 9.4% 8% 7% 6% 5% 4% 3% 2% 6.9% 6.4% 6.5% % 5.2% 4.7% 3.7% % 4.2% 4.3% 4.3% 4.4% 2.8% 3.2% 3.2% 3.3% 1.9% % 2.4% 1% 0.9% OO RR II SS MM LL UU EE AA GG KK NN HH ARC JJ WW DD BB CC VV TT PP FF QQ ARC = UNWEIGHTED AVERAGE OF ALL FIRM QUIT RATES ARC Firms ARC 2016 Quit Rate = 3.7% ARC 2015 Quit Rate = 3.8% ARC 2014 Quit Rate = 3.7% ARC 2013 Quit Rate = 3.2% ARC 2012 Quit Rate = 3.1% * weighted/individual level 20
21 Service-Adjusted Voluntary Quit Rate 9% 8% 7% 6% 5% 4% 3% 2% 1% 1.4% 1.6%1.9% Service-Adjusted Firm Voluntary Quit Rates for US Exempt Workforce 5.8% 5.9% 5.1% 5.2%5.3% 4.8% 4.3%4.3% 4.5%4.5% 3.5% 3.5% 3.6%3.6% 3.8% 3.1% 2.4% 2.5% 6.6% 7.2% 7.9% OO II RR SS MM LL UU AA WW JJ BB ARC KK NN HH GG CC DD VV PP FF TT QQ EE ARC = Unweighted Average of All Firm Quit Rates ARC Firms ARC 2016 Quit Rate = 3.7% ARC 2015 Quit Rate = 3.8% ARC 2014 Quit Rate = 3.7% ARC 2013 Quit Rate = 3.2% ARC 2012 Quit Rate = 3.1% * weighted/individual level 21
22 Voluntary Quit Rate Population Percent 9% 8% 7% 6% 5% 4% 3% 2% 1% Distribution of ARC Workforce and Voluntary Quits by Service US Exempt Workforce 13.3% 8.4% 8.1% 12.3% 7.7% 10.6% 6.6% 6.6% 6.2% 5.9% 8.3% 5.5% 6.4% 6.6% 4.9% 7.1% 5.7% 5.3% 3.9% 4.8% 3.6% % 3.3% 3.5% 3.5% 2.6% 2.4% 1.5% 0.8% 0.4% 0.2% 14% 12% 1 8% 6% 4% 2% < Length of Service Percent Population Voluntary Quit Rate 22
23 Voluntary Quit Rates 12% Longitudinal Trend - Weighted Average for All Firms US Exempt Workforce 1 8% 6% 4% 2% Year 23
24 Retention Rates Quit Rate = 2.21% 2009 Retention Rates 2010 Retention Rates 2011 RETENTION RATES 2012 RETENTION RATES 2013 RETENTION RATES 2014 RETENTION RATES 2015 RETENTION RATES 2016 Retention Rates Quit Rate = 5.06% 2016 Quit Rate = 3.71% If 100 new employees began work in 2007, then 40 would still be employed after 15 years. If 100 new employees began work in 2009, then 63 would still be employed after 15 years. Assumes Quit Rates for Various Service Categories are Stable for Next 15 Years. If 100 new employees began work in 2016, then 48 would still be employed after 15 years. 1 24
25 ANOVA Predicting Quits by JobCat US Exempts Occupations 2016 Quit Rate 2015 Quit Rate 2014 Quit Rate 2013 Quit Rate 08-Sales 5.68% % Customer Service 5.42% % Human Resources 5.12% 5.22% 4.49% Other Exempt 4.81% 4.95% 4.73% Finance 4.65% 4.96% 4.51% Legal 4.43% 4.72% 3.95% Corp Affairs / Communications 4.36% 4.98% 4.29% Marketing 4.34% 3.33% 3.38% Info Tech 4.07% 4.95% Financial Customer Service 3.86% 6.98% 2.44% Supply Chain/Purch 3.54% 3.78% 3.29% Manufac Ops/Engr 3.53% 3.33% 3.79% Software Engineering % 4.25% Engineering 2.87% % Research 2.87% 2.32% 2.72% Manufac Ops/Supv 2.69% 2.91% 2.24%
26 Logistic Regression Predicting Quits N = 255,667 Nagelkerke R 2 =.12* US Exempts Less than.05 means statistically significant Less than 1.0 means LESS likely to Quit; Greater than 1.0 means MORE likely to Quit Longer tenure less likely to Quit Women more likely to Quit B S.E. Wald df Sig. Exp(B) Service_Yrs Sex Race HighPerf Age JobLevel DBDC Constant Non-White more likely to Quit High Performers less likely to Quit?? Older less likely to Quit Individual Contributors more likely to Quit Defined Contribution more likely to 26 Quit
27 Follow-Up to Logistic Regression Predicting Quits (US Exempts) Quit Rate 3.7%Men 4.2%Women Quit Rate 3.5%White 4.9%Non-White 5.8%African-Am 6.4%Multi Quit Rate Quit Rate Service_Yrs 5 or Less 10.3%Men 13.Women Service_Yrs 5 or Less 9.5%White 14.4%Non-White 17.7%African-Am 16.2%Multi Quit Rate 2.8%Defined Benefit Quit Rate 3.6%Not High 4.7%Defined Contribution 3.7%High Performers 27
28 Group differences in Attrition Some Concepts: Absolute Ratio: The ratio of total attrition of one group compared to another group, for example women total attrition rate compared to men total attrition rate Service-Adjusted Ratio: An adjusted ratio that removes the influence of the differences in the length-of-service profile between groups. It answers the question: What would group A s (e.g. women) overall quit rate be if they had the same length-of-service distribution as group B (men) applied to their quit rates across the length of service bands? 28
29 Voluntary Quit Rate Population Percent Gender Differences by Length of Service 1 Women Weighted Mean Quit Rate = 4.03% (2015 = 4.12% (2014 = 4.13%; 2013 = 3.86%; % = 3.06) Men Weighted Mean Quit Rate = 3.57% (2015 = 3.68% (2014 = 3.57%; 2013 = 2.88%; 2012 = 2.88%) 9% 14% 8% 7% 6% 5% 12% 1 8% 4% 3% 2% 1% 6% 4% 2% < Length of Service PERCENT WOMEN PERCENT MEN WOMEN QUIT RATE MEN QUIT RATE 29
30 Ratio of Women to Men Voluntary Quit Rates Absolute Ratio of Women to Men Voluntary Quit Rates US Exempt Workforce 2016 ARC = ARC = ARC = ARC = ARC = EE JJ QQ CC PP RR WW HH FF II BB ARC KK UU DD MM SS LL TT NN OO GG VV AA ARC FIRMS ARC = UNWEIGHTED AVERAGE OF FIRMS' RATIOS 30
31 Service-Adjusted Ratio of Women to Men Voluntary Quit Rates US Exempt Service-Adjusted Ratio of Women to Men Voluntary Quit Rates Assume Same Male Service Distribution VV EE JJ WW CC HH NN RR FF ARC UU DD PP BB II KK QQ SS LL TT OO MM GG AA ARC Firms ARC = UNWEIGHTED AVERAGE OF FIRM RATIOS 31
32 Voluntary Quit Rates Population Percent 1 9% 8% 7% White-NonWhite Differences in Voluntary Quits by Service NONWHITE WEIGHTED AVERAGE QUIT RATE = 4.74% (2015 = 4.59%; 2014 = 4.54%; 2013 = 4.07%; 2012 = 3.92%) WHITE WEIGHTED AVERAGE QUIT RATE = 3.39% (2015 = 3.53%; 2014 = 3.36%; 2013 = 2.95%; 2012 = 2.68%) 16% 14% 12% 6% 1 5% 8% 4% 3% 2% 1% 6% 4% 2% < Length of Service PERCENT NONWHITE PERCENT WHITE NONWHITE QUIT RATE WHITE QUIT RATE 32
33 Ratio of Minority to Majority Voluntary Quit Rates Absolute Ratio of Minority to Majority Voluntary Quit Rates US Exempt Workforce ARC 2016 = 1.41 ARC 2015 = 1.39 ARC 2014 = 1.39 ARC 2013 = JJ NN WW HH TT RR QQ EE FF DD UU PP II ARC GG OO KK CC AA BB VV SS LL MM ARC FIRMS ARC = UNWEIGHTED AVERAGE OF FIRM RATIOS 33
34 Service-Adjusted Ratio of Minority to Majority Voluntary Quit Rates 3 US Exempt Service-Adjusted Ratio of Minority to Majority Voluntary Quit Rates Assume Same Majority Service Distribution ARC 2016 = 1.06 ARC 2015 = 1.12 ARC 2014 = 1.10 ARC 2013 = VV JJ WW NN TT RR HH DD EE ARC SS QQ UU GG FF II OO PP KK CC AA BB LL MM ARC Firm 34
35 Voluntary Quit Rate Percent Population 13% 12% 11% 1 9% African American to Caucasian American Differences in Voluntary Quits by Service African American Weighted Mean Quit Rate = = 5.53% (2015 = 5.12%; 2014 = 4.65%; 2013 = 4.17%; 2012 = 3.91%) Caucasian American Weighted Mean Quit Rate = 3.39% (2015 = 3.53%; 2014 = 3.36%; 2013 = 2.95%; 2012 = 2.68%) 26% 24% 22% 2 18% 8% 7% 6% 5% 4% 3% 2% 1% < Length of Service 16% 14% 12% 1 8% 6% 4% 2% Percent Caucasian American Percent African American Caucasian American Quit Rate African American Quit Rate 35
36 Absolute Ratio of African-Caucasian American Voluntary Quit Rates 3.00 Absolute Ratio of African American to Caucasian American Voluntary Quit Rates US Exempt Workforce ARC 2016 = 1.48 ARC 2015 = 1.40 ARC 2014 = 1.33 ARC 2013 = JJ WW QQ BB VV UU CC II NN TT RR SS ARC EE GG PP FF HH AA OO DD KK LL MM ARC = UNWEIGHTED AVERAGE OF FIRM RATIOS ARC Firm 36
37 Service-Adjusted Ratio of African-Caucasian American Voluntary Quit Rates 3.00 US Exempt Service-Adjusted Ratio of African American to Caucasian American Voluntary Quit Rates Assume African Americans Have Same Service Distribution as Caucasian Americans ARC 2016 = 1.17 ARC 2015 = 1.19 ARC 2014 = 1.07 ARC 2013 = VV WW JJ QQ SS CC TT UU NN BB ARC GG OO II EE AA FF HH PP RR DD LL KK MM ARC = UNWEIGHTED AVERAGE OF FIRM RATIOS ARC Firm 37
38 Voluntary Quit Rates Percent Population 11% 1 9% Hispanic American to Caucasian American Differences in Voluntary Quits by Service Hispanic American Weighted Mean Quit Rate = 4.58% (2015 = 4.68%; 2014 = 4.61%; 2013 = 3.6; 2012 = 3.55%) Caucasian American Weighted Mean Quit Rate = 3.39% (2015 = 3.53%; 2014 = 3.36%; 2013 = 2.95%; 2012 = 2.68%) 22% 2 18% 8% 16% 7% 14% 6% 12% 5% 1 4% 8% 3% 6% 2% 4% 1% 2% < Length of Service Percent Hispanic American Percent Caucasian American Hispanic American Quit Rate Caucasian American Quit Rate 38
39 Ratio of Hispanic-Caucasian American Voluntary Quit Rates 3 Absolute Ratio of Hispanic American to Caucasian American Voluntary Quit Rates US Exempt Workforce ARC 2016 = 1.32 ARC 2015 = 1.31 ARC 2014 = 1.39 ARC 2013 = JJ NN DD HH WW FF PP AA VV TT MM ARC SS UU GG EE KK II BB QQ RR LL OO CC ARC = UNWEIGHTED AVERAGE OF FIRM RATIOS ARC Firms 39
40 Service-Adjusted Ratio of Hispanic-Caucasian American Voluntary Quit Rates 3.00 US Exempt Service-Adjusted Ratio of Hispanic American to Caucasian American Voluntary Quit Rates Assume Hispanic Americans have Same Service Distribution as Caucasian Americans ARC 2016 = 1.02 ARC 2015 = 1.09 ARC 2014 = 1.14 ARC 2013 = VV JJ NN DD WW HH FF SS II KK ARC PP GG UU TT MM AA EE BB OO RR LL QQ CC ARC Firms 40
41 Voluntary Quit Rate Percent Population 11% 1 9% Asian American to Caucasian American Differences in Voluntary Quits by Service Asian American Weighted Mean Quit Rate = 4.0 (2015 = 4.38%; 2014 = 4.29%; 2013 = 4.11%; 2012 = 4.12%) Caucasian American Weighted Mean Quit Rate = 3.39% (2015 = 3.53%; 2014 = 3.36%; 2013 = 2.95%; 2012 = 2.68%) 22% 2 18% 8% 16% 7% 14% 6% 12% 5% 1 4% 8% 3% 6% 2% 4% 1% 2% < Length of Service Percent Asian American Percent Caucasian American Asian American Quit Rate Caucasian American Quit Rate 41
42 Ratio of Asian-Caucasian American Voluntary Quit Rates Absolute Ratio of Asian American to Caucasian American Voluntary Quit Rates US Exempt Workforce ARC 2016 = 1.44 ARC 2015 = 1.39 ARC 2014 = 1.49 ARC 2013 = JJ FF HH TT EE RR OO KK GG QQ PP NN WW UU DD II ARC CC LL SS BB MM VV AA ARC Firms 42
43 Service-Adjusted Ratio of Asian-Caucasian American Voluntary Quit Rates US Exempt Service-Adjusted Ratio of Asian American to Caucasian American Voluntary Quit Rates Assume Asian Americans Have Same Service Distribution as Caucasian Americans ARC 2016 = 1.03 ARC 2015 = 1.06 ARC 2014 = 1.23 ARC 2013 = VV JJ WW TT RR EE FF OO HH GG UU NN QQ ARC II PP DD KK CC SS LL BB AA MM ARC Firms 43
44 High Performer Percentage in Workforce 4 High Performers as Percent of Exempt Workforce 35% 3 25% ARC 2016 = 17.3% ARC 2015 = 16.4% ARC 2014 = 16.1% ARC 2013 = 15.1% 24.8% 30.1% 35.7% % 33.7% % 18.2%18.8% 15% 13.4% % 1 5% %9. 5.9% 6.6.2% AA EE II KK UU LL VV MM OO HH JJ WW BB SS RR ARC NN GG PP CC FF DD QQ TT ARC = UNWEIGHTED AVERAGE OF FIRM PERCENTAGES ARC Firms 44
45 Voluntary Quit Rate Percent Population 12% 11% 1 9% NonHigh Vs. High Performer Voluntary Quit Rates by Service NonHigh Performer Weighted Mean Quit Rate = 3.43% (2015 = 3.56%; 2014 = 3.52%; 2013 = 2.9; 2012 = 2.81%) High Performer Weighted Mean Quit Rate = 3.62% (2015 = 3.55%; 2014 = 3.36%; 2013 = 2.26%; 2012 = 1.97%) 22% 2 18% 16% 8% 7% 6% 5% 4% 3% 2% 1% 14% 12% 1 8% 6% 4% 2% < Length of Service Percent High Performers Percent NonHigh Performers High Performer Quit Rate NonHigh Performer Quit Rate 45
46 Voluntary Quit Rate Longitudinal Trends in Voluntary Quits Between High and NonHigh Performers 6% 5.59% 5% 4% 3% 3.53% 3.94% 3.43% 2.78% 3.22% 2.81% % 3.56% 3.36% 3.55% 3.62% 3.43% 2% 2.59% 2.24% 2.03% 2.27% 2.22% 1.97% 2.26% 1% 1.32% Year Not High High 46
47 Ratio of High-NonHigh Voluntary Quit Rates 2.5 Absolute Ratio of High Performer to NonHigh Performer Voluntary Quit Rates ARC 2016 = 0.72 ARC 2015 = 0.77 ARC 2014 = 0.67 ARC 2013 = 0.67 ARC 2012 = NN LL OO GG QQ MM PP CC VV RR ARC HH TT SS FF DD JJ BB WW AA EE II KK UU ARC Firm 47
48 Voluntary Quit Rates Voluntary Quits by Pension Plan and Service 14% 12% DB Quit Rate = 2.66% (2015 = 2.36%; 2014 = 2.62%; 2013 = 2.38%; 2012 = 2.21%) DC Quit Rate = 4.6 (2016 = 6.02%; 2014 = 5.29%; 2013 = 5.36%; 2012 = 5.66%) 1 8% 6% 4% 2% <1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR YRS YRS YRS YRS 30+ YRS Length of Service DEFINED BENEFIT RETIREMENT DEFINED CONTRIBUTION RETIREMENT 48
49 Voluntary Quit Rate Voluntary Quit Rate by Pension Plan and Age 12% 1 8% 6% 4% 2% <= Age Range DEFINED BENEFIT RETIREMENT DEFINED CONTRIBUTION RETIREMENT 49
50 Non-US Exempt Attributes N = 119,107 (2015 = 103,096; 2014 = 97,029; 2013 = 116,643; 2012 = 121,406) 12 FIRMS ( = 11; 2012 = 13) QUIT RATE = 5.3 (2015 = 5.41%; 2014 = 5.71%; 2013 = 5.35%; 2012 = 5.62%) GENDER Frequency F M U PERF Frequency HIGH NONHIGH U STATUS Frequency ACTIVE INVOLUTARY LAYOFF VOLUNTARY QUIT RETIREMENT OTHER TERM VOLUNTARY LAYOFF
51 Non-US Exempt Attributes AGE RANGE Frequency <= Unkno Tenure Frequency <
52 Non-US Exempt Attributes JOB TYPE Frequency Customer Service Manufac Ops/Engr Manufac Ops/Supv Engineering Software Engineering Info Tech Research Sales Marketing Supply Chain/Purch Financial Customer Service Finance Human Resources Corp Affairs/ Communications Legal Other Exempt Job Rank Frequency Executive Individual Contributor Individual Contributor (Union) n/a Manager/ Supervisor XX Retirement Frequency DB DC XX
53 Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Firm Percent of International Exempt Population Non-US Exempt Attributes 35% Relative International Workforce Size of ARC Firms Distribution of International Exempt Workforce by Firm % 25% 22.48% 2 15% 12.54% 14.18% 1 5% 3.08% 4.36% 6.07% 7.21% 0.03% 0.04% % 53
54 Non-US Exempt Attributes DISTRIBUTION BY REGION Region Frequency AFRICA ASIA EUROPE LATIN AMERICA MIDDLE EAST OTHER NORTH AM XXX
55 Non-US Exempt Attributes 111 Countries (2015 = 113; 2014 = 104) TOP 10 COUNTRIES REPRESENTED SAME TOP 10 CHN, GBR, IND REMAIN TOP 3 COUNTRY FREQUENCY PERCENT 2016 QUIT RATE CHN % % 7.17% 7.58% GBR % 6.42% 5.89% 4.84% 6.89% IND % 8.54% 10.43% 8.04% 7.65% DEU % 2.34% 2.87% 2.35% 2.98% MEX % 6.17% 5.65% 3.29% 3.95% BRA % 4.31% 3.75% 5.73% 5.9 JPN % 2.22% 2.13% 3.19% 2.21% AUS % 7.34% 7.49% 5.41% 5.56% CAN % 1.69% 4.36% 4.23% 4.2 FRA % 6.73% 8.35% 55
56 Voluntary Quit Rate Population Percent 13% 12% 11% 1 Gender Differences by Length of Service International Exempt Workforce Women Weighted Mean Quit Rate = 5.84% (2015 = 5.53%; 2014 = 5.75%; 2013 = 5.96%; 2012 = 6.25%) Men Weighted Mean Quit Rate = 5.07% (2015 = 5.35%; 2014 = 5.68%; 2013 = 5.03%; 2012 = 5.35%) 26% 24% 22% 2 9% 8% 7% 6% 5% 4% 3% 2% 1% 18% 16% 14% 12% 1 8% 6% 4% 2% < Length of Service Percent Women Percent Men Women Quit Rate Men Quit Rate 56
57 Voluntary Quit Rate Percent Population 2 18% 16% NonHigh Vs. High Performer Voluntary Quit Rates by Service International Exempt Workforce NonHigh Performer Weighted Mean Quit Rate = 5.31% (2015 = 4.78%; 2014 = 4.32%; 2013 = 4.6; 2012 = 5.73%) High Performer Weighted Mean Quit Rate = 4.65% (2015 = 3.23%; 2014 = 2.65%; 2013 = 2.33%; 2012 = 10.08%) 2 18% 16% 14% 14% 12% 12% 1 1 8% 8% 6% 6% 4% 4% 2% 2% < Length of Service Percent High Performers Percent NonHigh Performers High Performer Quit Rate NonHigh Performer Quit Rate 57
58 Voluntary Quit Rate Percent Population International vs. US Comparisons of Quit Rates by Length of Service Exempt Workforce 2 18% 16% US Weighted Mean Quit Rate = 3.71% (2015 = 3.81%; 2014 = 3.74%; 2013 = 3.2; 2012 = 3.03%) International Weighted Mean Quit Rate = 5.3 (2015 = 5.41%; 2014 = 5.71%; 2013 = 5.35%; 012 = 5.61%) 2 18% 16% 14% 14% 12% 12% 1 1 8% 8% 6% 6% 4% 4% 2% 2% < Length of Service Percent NonUS Percent US NonUS Quit Rate US Quit Rate 58
59 MAKING ARC DATA EVEN MORE VALUABLE Discuss Consensus on Existing Variables Job Performance Retirement Plans Job Codes/Exempt-NonExempt International Potential Additional Variables? Most Promising Job tenure Manager/supervisor # past promotions Skeptical about Collecting Education Level Recruitment source Skeptical about Sharing Pay level 59
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