The latest research from the Chartered Institute of Personnel and Development (CIPD) has revealed that a fifth of the working population could resign in the next year.
The latest data is part of an ongoing trend around the globe, commonly referred to as the ‘Great Resignation’.
Already, hundreds of thousands of employees have quit their jobs to pursue new career interests or in search of better pay or more flexible work conditions.
The current cost-of-living crunch is only exacerbating this issue, as employees struggling to secure sufficient pay rises look towards new employment with a better salary and benefits.
The CIPD’s Good Work Index polled more than 6,000 workers and found that 20 per cent aimed to quit their job in the next 12 months – up from 16 per cent in 2021.
If this figure were extrapolated throughout the UK’s working population it could mean that 6.5 million people may change roles in the next year.
The top reasons cited for leaving a post were:
- 35 per cent – Better pay and benefits
- 27 per cent – Increased job satisfaction
- 24 per cent – Looking for better work-life balance
- 23 per cent – Pursue a career change
The survey also found that almost two in five lower earners – paid £20,000 a year or less – felt their job provided the opportunity to gain new skills, and only 25 per cent felt they had good career advancement prospects.
How can employers help to retain staff?
Like their employees, many businesses are already experiencing a cost-of-living crisis and offering better pay and benefits may not be feasible given current economic conditions.
However, did you know the overall estimated expense per hire in the UK for each vacancy, depending on seniority and skill, is between £7,275 to £22,515, according to recruitment specialists Test Candidates.
With this cost in mind, how can employers help to retain staff for longer:
- Conduct a staff satisfaction survey to review employee needs
- Offer a more flexible work environment, including hybrid working
- Provide more training and development opportunities to staff at all levels
- Host more work socials and staff days out
- Support staff wellbeing and mental health
- Review existing pay and benefits
- Assess the company’s work culture and values to ensure they align with employee expectations.
Ola McGhee a Solicitor and employment law expert with Palmers, said: “The current workforce shortage is causing many employers to revisit their workplace policies with many offering flexible working policies to attract more candidates from a wider geographic pool of talent.
“However, it is important to follow the correct procedures when dealing with any requests for flexible working from both new and existing members of staff, to avoid any potential pitfalls and breaches of the law.
“It may also be a good time to review your HR policies to ensure you meet the latest Good Work Plan guidelines.”
For help and advice with all aspects of employment law for your business, please get in touch with us.