New research by Personio, found that businesses are sleepwalking towards a costly exodus with 38% of employees planning to leave their current job within the next 12 months, this figure rises to over half, 55% for 18-34-year-olds.
The research is based on 500 HR decision-makers and 2,002 workers across the UK and Ireland which found that nearly half of employers, 45%, are worried staff will leave once the job market improves, and only a quarter, 26%, state that talent retention is a priority for their organisation over the next 12 months.
The analysis from the HR software firm reveals that, overall, the cost of additional staff turnover could amount to £10,076 per business, with SMEs alone facing estimated costs of up to £5.8bn.
The reasons for staff leaving, uncovered in the research, shows that 29% of respondents say lack of career progression opportunities, 25% say poor management, 29% say lack of appreciation for work, 22% say poor work-life balance, and 18% say toxic workplace culture.
Ross Seychell, chief people officer at Personio said: It’s not surprising that people are looking to move roles as the economy improves, as many people have stayed put and put job changes on hold while the labour market was more uncertain.
‘However, now, as the economy recovers and people have more confidence in the job market, not only will people have more opportunity and confidence to leave their jobs for pastures new, but burnout and frustration with lack of employer support during the pandemic may push them out the door. As employers plan their return to the office, they should make sure to handle this process with care and consideration.’
The report also found that HR decision-makers were overestimating how well their organisation handled the pandemic and their team’s productivity. Three in ten employees, 31%, state that the pandemic has made them more productive whilst at work but 28% state their productivity has fallen.
Among businesses in the UK and Ireland that said they suffered productivity losses over the past 12 months, the report estimates that this has caused a significant drop in economic output of around £3,465 per employee, on average. This goes up to £4,016 per employee in medium-size businesses.
Meanwhile, on a national scale, overall productivity losses are estimated to have cost UK and Irish businesses £8.1bn.
