Reducing Employee Turnover

The UK’s employee turnover rate is reported around 15%, with much higher rates for new hires. According to XpertHR’s Labour Turnover Rate Survey 2022, 70.4% saw their employee turnover increase. The average financial cost of turnover has been calculated by Oxford Economics and Unum, as £30,614.

However there are other costs – less tangible but still significant – such as a negative effect on company culture. A report, which gathered data from UK-based business leaders, showed high staff turnover had led to 23% of businesses receiving complaints from remaining employees about a change in company culture, with another 23% noticing company culture deviated from the stated mission and values.

Do you want to reduce the risk of employees leaving?

As an employer top priorities for you will be meeting your legal obligations and filling your vacancies with the best candidates. A major reason cited for early turnover is a poor match of role and candidate, so reviewing your job descriptions and recruitment tools is a good step.

Next, a risk is that employees aren’t properly on-boarded, supported, trained and developed in those early months, and managers need to be equipped to provide this. According to a UK survey 68% of individuals who quit their job in the first year cited bad management as a reason.

With job vacancies and skills shortages at all time highs, attracting and retaining employees is a competitive pursuit which is won by ’employers of choice’. Your approaches to employee wellbeing, benefits, engagement and development; and your organisational culture and environment, all have a bearing.