The cost of labour turnover rocketed by a hefty 10.5% last year according to the Chartered Institute of Personel and Development (CIPD). The cost of labour turnover is the cost to the business caused by staff replacement and indirect customer costs such as loss of business goodwill or customer satisfaction.
The cost increase sees labour turnover for professional staff averaging £5,206 whilst the figure for manual staff is £1,127.
Labour turnover (the number of people changing jobs) fell in the same period by 2%, down to 18.3% for all employees. The decline in turnover was spread across all sectors, although part-time workers are moving less than others with a 4.5% decline.
Organisations reported increased recruitment difficulties for the same period, with the numbers reporting recruitment difficulties rising from 70% to 77%.
Further reading: how regular training can reduce employee turnover.