Voluntary Employee Departures Spike 41 Percent Among U.S. Businesses, Aon Reports

Rhea-AI Summary

Aon plc (NYSE: AON) reports a significant 41% increase in voluntary employee departures in the U.S. during 2021, highlighting challenges amidst the "Great Resignation." The firm’s Salary Increase and Turnover Study reveals that 21.8% of U.S. employees left their jobs last year, with 17.2% departing voluntarily. Average salary increases for 2022 have also risen to 5.2%, up from 4.5% the previous year. The study indicates that 40% of employers plan to hire aggressively, reflecting ongoing labor market pressures.

Positive

• Average salary increases in 2022 reached 5.2%, indicating increased investment in employee compensation.
• 40% of U.S. employers plan to hire aggressively in 2022, suggesting strong labor demand.

Negative

• 41% spike in voluntary employee departures indicates significant turnover challenges for businesses.

• Firm quantifies the "Great Resignation" and the challenges employers face attracting and retaining top talent
• Average budgeted employee salary increases reach 5.2 percent, up from 4.5 percent last year

CHICAGO, June 2, 2022 /PRNewswire/ -- Aon plc (NYSE: AON) reported a 41 percent spike in voluntary employee departures last year amid the "Great Resignation" in the United States, according to data from the firm's Salary Increase and Turnover Study. Aon, a leading global professional services firm, reported 21.8 percent of U.S. employees left their jobs in 2021, of which 17.2 percent departed voluntarily. In 2020, 19.7 percent left employers, of which 11.9 percent departed voluntarily.  

"The spike we've seen in voluntary departures quantifies the challenges employers face during this period we call the 'Great Resignation,'" said Michael Burke, CEO for Human Capital Solutions at Aon. "Employers must look to the underlying root cause and not merely treat the symptoms. They will need to review total rewards strategies and look at resilience, agility, wellbeing and purpose in order to retain and attract top talent in their respective industries. A tight labor market will continue to challenge employers in the near term."

Figures come from Aon's Human Capital Solutions bi-annual Salary Increase and Turnover Study, which is a global survey of nearly 2,000 employers. The report provides insights on salary increases and employee retention powered by industry-leading data and analytics that reflects how broader economic circumstances impact the talent landscape.

The study also shows:

• Average budgeted salary increases in 2022 reached 5.2 percent, up from 4.5 percent last year in the U.S. This includes merit raises and promotions.
• Forty percent of U.S. employers say they will hire aggressively in 2022, while 46 percent plan to hire at a normal pace, 13 percent will be very selective and 1 percent will freeze hiring.
• Energy (10.6 percent), construction (15 percent) and financial services (15.6 percent) had the lowest voluntary departure rates among industries measured.

The report includes measurable data samples from 10 industries, which include business consulting, construction/real estate, energy, entertainment, financial services, life sciences, manufacturing, retail/hospitality, technology and transportation.

"We use these data insights to provide advice and solutions that give employers from an array of industries the clarity and confidence needed to make better decisions to protect and grow their business," said Michael Deeks, global head of the data business for Human Capital Solutions at Aon.  "It's a hot job market out there and as a result, we are seeing turnover grow and many companies allocate more money in their salary budgets."

To learn more about the report, click here.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

Follow Aon on Twitter and LinkedIn. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts here.

Media Contact
Robert Elfinger
robert.elfinger@aon.com 
+1 312 381 0071

 

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SOURCE Aon plc

FAQ

What does Aon's report say about employee departures in 2021?

Aon's report highlights a 41% increase in voluntary employee departures in the U.S. in 2021, with 17.2% of employees leaving voluntarily.

What are the average salary increases reported by Aon for 2022?

Aon reports that the average budgeted salary increases for 2022 reached 5.2%, up from 4.5% in 2021.

How many employers plan to hire aggressively according to Aon's study?

According to Aon's study, 40% of U.S. employers plan to hire aggressively in 2022.

What is the significance of the 'Great Resignation' reported by Aon?

The 'Great Resignation' signifies increased voluntary departures, impacting employer strategies to attract and retain talent.