Average Employee Turnover Rate in the UK

Employee Turnover Statistics

The average employee turnover rate in the UK is 35%.
Replacing an employee can cost between 75% and 200% of the worker’s annual pay, depending on their level of skill and experience.
For jobs that pay between £30,000 to £50,000 annually, replacing an employee will cost around 20% of their salary.
For executive positions, replacing an employee could cost up to 213% of their annual salary.
The hospitality industry continues to experience high turnover rates, with the leisure and hospitality sector reporting an 82% turnover rate in 2022
The retail industry has experienced a decrease in the number of employees, with a reduction of 40,100 employees (1.5%) between 2022 and 2023.
The healthcare sector saw an increase of 181,000 employees (4.3%) between 2022 and 2023, indicating changes in employment dynamics within the sector.
The financial activities sector reported a 29% turnover rate in 2022.

UK employee turnover rates for each year between 2012 and 2025

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.

The staff turnover rate throughout 2022 was around 6%.
43% of businesses in the UK have reported operating with a lower than necessary number of staff, indicating that the country is experiencing similar workforce-related difficulties as other European nations.
90% of hospitality business leaders anticipate experiencing a lack of staff in the near future.
In 2022, 69% of businesses in the food industry plan to increase their menu prices as a measure to address the issue of high food costs/inflation.
The market size of the hotel industry is at GBP 19.76 billion, still down from 2020 when it was at GBP 23.52 billion.
In 2025 there was a 46% increase in hospitality job adverts.
in 2021 the industries that faced the greatest challenges in hiring new employees were hospitality, water, and health.

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.

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.

Sources: