Start-up Job Hoppers on the Decline
During the recessions in 2001 and between 2007 and 2009, churning declined more at start-ups (defined in the study as businesses up to 12 months old) than at bigger businesses. Kauffman noted: "Between 1998 and 2011, between 25% and 30% of all workers in young firms left those firms in each quarter."
If you're thinking low turnover is good for business, past Kauffman research found that churning is actually beneficial to productivity and wage growth.
"Constant turnover means employees and employers are looking for the right match, and those better matches can lead to higher wages and higher productivity," Kauffman's director of research and policy Dane Stangler told Inc. "If there's lower churning, that could potentially mean that the matching process is not working well as it should and could."
However, Stangler added that the overall dip in churning may also suggest that more and more workers have found stable jobs.
"[Young companies] are still finding their way; trying to build a product or a service and put together the right team," Stangler explained. "And most new businesses in this country are in high turnover sectors, like restaurants, retail stores and administrative services."
In the same study, Kauffman also discovered the widening pay gap between start-ups and big businesses--in 2011, workers at start-ups only earned 70% of what their big business equivalents made.
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