Average Employee Turnover Rate in the UK

Employee Turnover Statistics

• The UK has one of the highest employee turnover rates in Europe, with an average of 16.8% of employees leaving their jobs each year.
• The cost of replacing an employee can range from 30% to 200% of their annual salary, depending on their level of skill and experience.
• The hospitality industry has the highest turnover rate in the UK, with an average of 37.6% of employees leaving their jobs each year.
• The retail industry also has a high turnover rate, with an average of 33.6% of employees leaving their jobs each year.
• The healthcare and social care sector has a relatively low turnover rate, with an average of 14.8% of employees leaving their jobs each year.
• The financial and insurance sector has an even lower turnover rate, with an average of 12.8% of employees leaving their jobs each year.

Causes of Employee Turnover in the UK

• Lack of job satisfaction is a leading cause of employee turnover, with 37% of employees who leave their jobs citing dissatisfaction as the main reason.
• Poor management is another common reason for employee turnover, with 29% of employees who leave their jobs citing poor management as a factor.
• Low pay is also a common reason for employee turnover, with 21% of employees who leave their jobs citing pay as a factor.
• Lack of opportunities for career advancement is another factor that can contribute to employee turnover, with 19% of employees who leave their jobs citing a lack of opportunities as a reason.
• A poor work-life balance can also lead to employee turnover, with 17% of employees who leave their jobs citing this as a factor.

Impact of Employee Turnover on the UK Economy

• High employee turnover can have a negative impact on a company’s bottom line, as the cost of replacing employees can be significant.
• The constant cycle of hiring and training new employees can also be disruptive to a company’s operations and productivity.
• High employee turnover can also have a negative impact on customer service, as it takes time for new employees to get up to speed and provide the same level of service as more experienced employees.
• The UK economy as a whole is also impacted by employee turnover, as the cost of replacing employees and the disruption to businesses can lead to a decrease in overall productivity and competitiveness.

Staff Turnover Rate by Industry in the UK

• As mentioned earlier, the hospitality industry has the highest turnover rate in the UK, with 37.6% of employees leaving their jobs each year.
• The retail industry has a turnover rate of 33.6%, while the education sector has a turnover rate of 22%.
• The manufacturing and construction industries have slightly lower turnover rates, with 20% and 19% of employees leaving their jobs each year, respectively.
• The lowest turnover rates can be found in the financial and insurance sector, with 12.8% of employees leaving their jobs each year, and the healthcare and social care sector, with 14.8% of employees leaving their jobs each year.

UK employee turnover rates for each year between 2012 and 2021