Turnover in the Arts & Entertainment Industry
Arts and entertainment ranks as one of the top industries for high staff turnover with an annual average of 33.6%. Despite this high turnover rate, people generally have higher job satisfaction rating when compared to other industries. High satisfaction rates are correlated with reports of exposure to diversity and room for creativity and autonomy. With such meaningful responses, why is there such a high churn rate in the arts?
Entertainment industry employment statistics:
- The arts and entertainment industry’s annual quit rate has increased from 28.4% in 2013 to 33.6% in 2018
- The U.S. media and entertainment market alone composes a third of the global market and is expected to reach $771 billion by 2019, which is a 9% increase from 2016
- Most people who leave jobs in media/entertainment leave the industry all together. Only 36% of job-leavers go to another job in arts, entertainment or media
- The highest attrition rates in arts and entertainment is amongst animators (25.6%) and 3D artists (22.3%)
Root Causes of Turnover in Arts and Entertainment
1. Fierce Competition
Major reasons for the high employee turnover in the arts and entertainment industry include seasonality, lower pay, treatment of employees, and career paths. The growing number of people who enter the arts and entertainment industry currently exceeds the industry’s growth rate, creating a shortage of job opportunities. An abundance of newly emerging talent has created fierce competition with lower pay rates. Management often overlooks the fact that it is much more costly to replace a separated employee than to increase their salary or to create clearer career paths. Passion itself has a shelf life for employees who see so many of their colleagues quit, especially if they are under paid.
2. Nature of the industry
The overwhelming majority of employees who leave their jobs in media and entertainment industry often leave the industry itself. Only 36% of separating employees eventually find another job in the same media and entertainment industry. This number remains as one of the lowest of any profession. The primary reason that employees leave is due to the nature of the work itself. Many fall victim to the general lack of job security as most work is project-driven. There is also high variability in hours, workloads, and learning curves. Without proper engagement of staff, companies are bound to lose their best talent as a consequence of the natural ebb and flow of the industry.
How Can Retensa Help You with Your Turnover Rate:
- Exit Interviews start you off with actionable intelligence by asking the right questions. Using a third party like Retensa to conduct exit interviews creates the safety net people need to avoid burning bridges and be really honest about why they are leaving. Pinpoint the root causes for high turnover of creative versus non-creative staff, a key differentiator. Live voice-based exit Interviews for an arts and entertainment companies are the quickest win to increase retention
- Retention Skills Training allows you to acquire the tools to be a great manager who retains and engages a diverse pool of best staffs and employees. Retensa provides creative training based on customized insights from what each employee says about what he or she expects from leadership. With content demand rising, you do not have to lose any more creative and valuable employees who are not easily found and retained. Invest in training that is customized to the needs of arts and entertainment industry
- Retention Diagnostic identifies the areas where your organization excels in commitment, loyalty, and trust, as well as where it can focus to create the biggest impact. In arts and entertainment industry, there will always be fluctuations and variety in terms of project scope, time period, and type of employees. Retensa focuses on the issues you can control. To reduce employee turnover, take the root causes of low morale, high absenteeism, or disengagement and translate it into clear and actionable recommendations to retain top talent
Turnover does not go away by itself. But there are real tactics that work. It succeeds when we get proactive and increase connection, loyalty, and trust with the firm and future. Call us now at (212) 545-1280 or email a retention expert here