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Healthy Turnover Rate for a Small Agency

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Terrance Taylor
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I'm trying to determine whether our turnover rate is healthy for an agency of our size. We have about 20 employees on average but have an average turnover rate of about 40%. I think this is good considering our average length of employment is 2 and a half years, but wanted to know what other companies were experiencing.

Does anyone know if this is healthy for a small agency? If not, can you share what your turnover rate is?

Thanks!

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Xana Winans
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Hi Terrance,

I have a team of 23 and our leadership team has an employee retention goal of 90% or above. In general, I may lose one person a year, and that includes people I let go for performance issues (with the exception of one year when I apparently only hired crazy people - 3 were let go the same year they started for creating massive office drama). But, I'm based in Central PA and there's not a lot of agencies trying to poach my team, plus we are highly culture driven so they like where they work & who they work with. If you're in a major metro area, or you have a very young team that wants to ladder-climb, I could see it being higher. The problem I see is that high turnover can make it harder for you to recruit good talent in the future.

We may be the exception, not the rule, so I'd love to hear what other agency owners have experienced.

Oh - one more thing. After the year of the crazies, we started using TinyPulse. It's a fantastic feedback tool and measures so many things about team culture. I could not recommend this highly enough and it might tell you a lot about your turnover rates.

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Angela Harless
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We have 20 employees and I would say our turnover is at about 15%, usually 2-3 people per year leave for other opportunities or are let go. All of our employees who are age 35+ have been here 6 years+. Most of our "under 30" employees have been here at least 2 years - and up to 4 years, with the exception of one new hire this year.

The young lady who has been here 4 years just turned in her notice so she could move to another city "while she's still young and doesn't have any ties here." Another young lady was offered to take over her family business this year, so she left. So, that's 2 for this year and I wouldn't be surprised if we have a third by year end to get to 15%...

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