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Review Recruitment Practices

The average employee turnover in the UK is 18.1%, according to the Chartered Institute of Personnel and Development 2007 survey on ‘Recruitment, retention and turnover’. Staff turnover varies within industries with the highest levels being in hotel, catering & leisure at 28.3%. So for a business employing 45 staff, that is almost 13 new recruits to find each year.

Why is a high employee turnover a challenge?

Cost Using the above example, the cost to recruit all of their new employees, each year, is estimated at a staggering £71,500. This figure is based on the recruitment costs of between £4,000 and £7,000 for each of the new employees to cover advertising, agency fees, covering the vacancy, interviewing time, induction and training.

Labour markets If the skills your business needs are in short supply, recruitment is costly and it can take several weeks to fill a vacancy. In this case high turnover can be problematic. This is especially true of situations in which you are losing staff to direct competitors or where customers have developed relationships with individual employees.

In contrast, if it is relatively quick and easy to find and train new employees and at a low cost, then your business could sustain a high level of service despite having a high turnover rate.

Some employee turnover can benefit business if, say, a poor performer is replaced by a more effective employee or a retirement allows the promotion or sourcing of welcome 'new blood'.

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So you know what your turnover rates are or how much you are spending on recruitment each year? If not, contact us as In2HR can help.

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We can help you hire and retain the best employees, manage your employees more successfully, and improve employee motivation. Whatever your HR outsourcing needs, In2HR can assist any company within the Thames Valley areas, including Berkshire, Buckinghamshire, Oxon and Surrey. So why not contact us today.

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