RETENTION
New survey on labour turnover
The latest labour turnover survey by the Chartered Institute of Personnel and Development estimates that replacing a manager is likely to cost on average £5,699.
The average cost of labour turnover per employee in 2001 was £3,462.
These turnover costs are broken down as follows:
Leaving: payroll and personnel administration of leaver.
Replacement: recruitment, interview time and placement fees.
Transition: training costs and reduced performance while learning and during induction.
Indirect: loss in customer service/satisfaction.
Key survey findings
Among the main findings of the CIPD survey are:
Turnover rates: Labour turnover for all employees stood at 18.2% in 2001, well down on the 26.6% recorded in the previous year.
Occupational groups: Sales staff had the highest turnover rate, at 23.9%, compared with 12% for managers.
Industrial sectors: The highest turnover rate was found in the wholesale and retail trade, at 32.8%, followed by the IT industry (28.5%) and hotels, restaurants and leisure (25.0%).
Want to know more?
Title: Labour Turnover 2002, Chartered Institute of Personnel and Development.
Methodology: The survey questionnaire was sent to 10,000 personnel professionals in the private and public sectors during June 2002.
Sample size: A total of 538 organisations with a combined workforce of 795,239 employees responded to this eighth annual CIPD survey.
Availability: A copy of the survey can be downloaded from www.cipd.co.uk/download/Labour_turnover_2002.pdf
The Chartered Institute of Personnel and Development has over 110,000 members and is the UK's leading professional body for those involved in the management and development of people. Visitwww.cipd.co.uk.