![]() The global average employee turnover rate for tech workers is also relatively high sitting at 18.3% (Facilities Net).For the manufacturing industry, employee turnover rates were at 20% for 2022 (Reward Gateway). ![]() The average turnover rate in the UK is around 15% - although this varies widely from industry to industry (Monster).Not all industries have equal employee turnover rates If a company has a persistently high turnover rate it can damage employee morale and in turn, lead to less good work being produced and lower productivity. According to 2020 UK government figures, this averages out as a spend of £1,530 per employee for training each year ( Department for Education UK).Īside from the financial costs of a high employee turnover rate, there are other factors that are harder to measure that can occur when team members leave their current employer.In the UK alone, employers invest around £42 billion in employee training every year ( Department for Education UK). The sticker price of the average employee turnover per vacant position in the UK is an estimated £30,614 - a pretty sizable bill for companies to absorb ( 6Q).Losing an employee costs on average 33% of their annual salary, a figure which may be much higher than managers expect ( Employee Benefit News).Losing employees costs more than you might think So, we’ve put together some surprising statistics for managers and human resources professionals to give you insight into employee retention and turnover, and how to improve these rates. For example, the hospitality industry tends to have a turnover rate higher than the workforce average - in the UK the figure is 30% - double the national average.ĭespite this, there’s always room for improvement when it comes to employee retention and turnover. Some industries have higher employee turnover rates than others. This in turn means a good rate of employee retention should be around 90%. Generally, a good employee turnover rate is considered to be around 10%. That's why understanding the drivers behind employee turnover can help you with your employee retention, boost employee performance and ultimately save time and money for your business. In a fast-paced business environment, the old adage ‘time is money’ holds true. High-performing employees with niche skills or strong customer relationships can also be particularly difficult to replace, making the hiring process lengthy and laborious. What is a good employee turnover rate and why is it so important?įor jobs with in-demand skills, or positions where training and recruitment are lengthy and costly, high turnover can become a problem. It can also help improve the employee experience. Seeing specific metrics and turnover statistics can be particularly helpful to companies as an indicator of their management effectiveness. This covers all staff departures, from voluntary turnover - including retirees and resignations to involuntary turnover such as redundancies. It refers to the number of employees who leave a company over a certain period of time - usually a year. If a company has an employee retention rate of 75% it means that 75% of their workforce has been in post for more than one year.Įmployee turnover is the other side of the coin. This is then taken as a percentage of the overall staff. It’s usually recorded as the percentage of full-time employees with a certain length of time at the same company. What is employee retention and turnover?Įssentially, employee retention is the rate at which companies and organizations keep their employees measured. Here, we dig into exactly what employee turnover and retention are, and what they mean for companies’ workplaces, employee satisfaction, and the bottom line. This means industries are experiencing a shake-up in their workforce which is impacting their employee turnover and employee retention rates. The COVID-19 pandemic has caused many employees to seek a new job. At TravelPerk, we understand how important it is to hire the right staff and keep them. Hiring top talent and high-performing employees is the lifeblood of any company.
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