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27/02/2017
The value of employee loyalty has been calculated to represent almost a quarter of the average UK worker’s annual salary, according to research published by incentives provider, One4allRewards. The cost of non-loyalty, that is excess turnover, includes an amount of salary for the average notice period, recruitment fees for hiring replacements and the amount of productivity lost once an employee hands in their notice.
Based on an average UK salary of £27,645, these costs amount to £65,335 per employee, or 23% of the average annual salary.
Declan Byrne, managing director of One4allRewards, comments:
‘Most employers know that having staff resign is not only inconvenient but also costly. But the combined total of the recruitment costs, productivity losses and more that are associated with this may come as a bit of a shock, and it is no meagre sum.’
Factors identified as encouraging job retention include a pleasant working environment, regular pay rises and long-term benefits such as pensions and health insurance. Recognition rewards, such as gift cards and cash bonuses, were also key for one in three workers.