Employee resignations up for sixth consecutive year

Employee resignation rates have risen consistently for the sixth consecutive year. 

One in five (19%) employees resigned from their job in 2017, up from 15.5% in 2016, according to the latest data from XpertHR. Labour turnover statistics from 398 organisations show the resignation rate has increased steadily since 2012, when it stood at 10.6%.

According to the research, the biggest change in turnover was in manufacturing and production. The average voluntary resignation rate increased from 11.7% in 2016 to 18.9%, and the median from 10.5% to 14.3%. Looking at total labour turnover – which includes retirements and dismissals across all sectors –  the figures have moved from an average of 17.4% to 21.5%, and a median of 15% to 19.2%.

With the employment rate at its highest since comparable records began in 1971 – standing at 75.7% according to the Government’s Labour Force Survey – employers are going to feel the squeeze of a tight labour market. This provides challenges for employers to maximise the efficiency and effectiveness of their recruitment procedures, while also ensuring they focus on retention and productivity.

In its report, XpertHR also included data on voluntary resignation rates and total labour turnover rates for employees with less than 12 months’ service. The data showed that an average of more than one in ten (10.9%) new starters resigned before completing 12 months’ service, while an average of 12.7% left either voluntarily or due to dismissal.

Noelle Murphy, XpertHR senior HR practice editor, said: “Employers should pay special attention to labour turnover for new starters with less than 12 months’ service as consistently high levels of turnover can be a strong indication of issues in the recruitment and selection processes as well as the onboarding exercises in place.

“There is also a higher cost implication for employers with ongoing churn among new starters, more so than for those with longer service. Alongside resources, consistent levels of turnover among new starters will have a negative ripple effect on employee engagement among all employees.”