So, while Monster says that the UK average employee turnover rate is approximately 15% a year, in 2018 LinkedIn reported from their own data that the global average was 10.9%. It is very important to remember that attrition rates vary widely across sectors, countries and job types. Keep in mind: attrition rates vary wildlyĪccording to a source quoting the US Bureau of Labor Statistics: “About 3 million Americans quit their job each month.”
For example, recruiters often say that they struggle to recruit new people when the company has a history of high turnover. Whenever someone leaves it definitely changes the dynamics of a team and can even hurt the company’s employer brand and even employer value proposition (EVP). Their departure can also reduce morale, increase stress, burn out employees and perhaps even impact the company’s overall business performance. Often, that results in adding more work to already over-burdened team members. Their departure will also impact those people working around them.
This is true, of course, unless you have a next-level succession planning process in place. That’s because it is almost impossible to transfer all the knowledge an employee has gained over the years. Unless there is an extremely rigorous handover process, institutional knowledge will leave the organisation. After all, replacing a highly-trained employee can vary between 120% of their annual salary to more than 200%, according to some sources. The first impact can be felt in hiring cost. That is why it’s important to know the status of your attrition rate. Staff turnover can have a negative impact on your company’s performance.
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