great{with}talent conducted research in October 2013 into attrition rates and staff turnover rates in the UK. This presentation shows significant trends relating to industry, attrition geography, employee retention challenges and what companies are doing to combat these issues.
They also offer predictions for future staff turnover rates and attrition rates.
2. Job Tenure by Industry Sector
Reed Consulting
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Tenure varies considerably by industry sector, with utilities, retail and leisure
continuing to be the most volatile market places
The war for talent remains strong in technology, finance and professional
services
3. Job Tenure ~ Regional Patterns
Reed Consulting
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Generally speaking, the larger the organisation the longer employees stay
The are considerable regional differences in job tenure
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Lowest in Scotland and London
Highest in Yorkshire, North West and North East
4. Retention Figures
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The % of organisations saying they have “no retention difficulties” has
declined sharply over the last 4 years
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Overall attrition figures have increased over the same period
Organisations report most difficulty in retaining managers and specialists
5. Overall Turnover Rates
CIPD 2013 Survey
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In 2011, voluntary resignation rates were 7.9%, with a mean 10.1%. This
compared to an overall turnover median of 12.5% and mean of15.6%.
•
The highest resignation rates were in the private sector employers, with a median
of 9%, compared with 6.1% in the public sector.
8. What organisations are doing to improve
retention
•
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Given high early attrition
figures, nearly half of those
surveyed are looking to
improve how they onboard
new starters
Improved pay is only 6th on
the list
•
Only 4% reported using
counter-offers to those
who had resigned
9. Predicted Attrition Rates
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Globally, turnover will see its sharpest increase in 2014
By 2018, around the world 49m more employees will be heading out
the door than in 2013
HayGroup 2013
10. Predicted Attrition Rates
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In 2015, UK turnover figures will reach 4.3 million, 765,000 more
departures than in 2012.
Over the next 5 years, turnover rates are expected to leap from
14.6% to 18%,
HayGroup 2013
11. Impact of attrition the bottom line
Direct Cost
•These are the typical costs to recruit, onboard and train
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£4300 to replace the average employee
£10,000 for the typical graduate role
£75,000 for a senior manager
•In a global sales/services organisation, employing nearly 4,000 people, the
direct cost of 10% attrition in 2012 was just over $5m
Indirect Cost
Far bigger at the indirect costs which include impact of customer satisfaction,
lost sales, brain drain
•A global software loses approximately $3m every time a field salesman resigns
