The latest research from the accountancy firm, PricewaterhouseCoopers (PwC) presents a bleak warning to employers. Almost a quarter of UK’s working population intend to look for a new career as they feel their pay is substandard.
The cost of replacing a trained staff member equates to almost one year of that person’s pay. This is reflected by all associated costs of productivity, lost skills and the money invested to train new recruits.
Research has factored in the time spent when a competent worker leaves. The manager's pay to interview new job prospects, paying others to do the manager's jobs, the checking of references, the emergence of the new recruit process and the loss of productivity and revenue whilst the new job recruit gets up to speed, to name just a few.
In addition to new, often higher career salaries, sometimes customer retention suffers when mistakes occur.
The UK is not faring favourably to other economies when it comes to job retention. The average resignation rates are approximately 5% in Germany and France, and about 7% in the states.
Richard Phelps, a representative from PwC, said: "Companies often vastly underestimate the financial benefits of retaining existing employees. With many businesses eager to maintain or grow staff levels as the economy starts to recover, it is crucial they consider the full costs of losing staff through resignation. The need is particularly pressing given that many employees who sat tight during the downturn may now be looking for new opportunities elsewhere."
Business are frequently turning to flat fee recruiting specialists like RecruitmentRevolution.com