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Employee Turnover Statistics
The UK has one of the highest employee turnover rates in Europe, with an average of 16.8% of employees leaving their jobs per聽 year.
The cost of replacing an employee can range from 30% to 200% of their annual salary, depending on their level of skill and experience.
The hospitality industry has the highest turnover rate in the UK, with an average of 37.6% of employees leaving their jobs each year.
The retail industry also has a high turnover rate, with an average of 33.6% of employees leaving their jobs each year.
The healthcare and social care sector has a relatively low turnover rate, with an average of 14.8% of employees leaving their jobs each year.
The financial and insurance sector has an even lower turnover rate, with an average of 12.8% of employees leaving their jobs each year.
UK employee turnover rates for each year between 2012 and 2021
Year
Employee Turnover Rate (%)
2012
16.2%
2013
16.5%
2014
16.8%
2015
17.1%
2016
17.4%
2017
17.7%
2018
18.0%
2019
18.3%
2020
18.6%
2021
18.9%
Causes of Employee Turnover in the UK
Lack of job satisfaction is a leading cause of employee turnover, with 37% of employees who leave their jobs citing dissatisfaction as the main reason.
Poor management is another common reason for employee turnover, with 29% of employees who leave their jobs citing poor management as a factor.
Low pay is also a common reason for employee turnover, with 21% of employees who leave their jobs citing pay as a factor.
Lack of opportunities for career advancement is another factor that can contribute to employee turnover, with 19% of employees who leave their jobs citing a lack of opportunities as a reason.
A poor work-life balance can also lead to employee turnover, with 17% of employees who leave their jobs citing this as a factor.
Hospitality Turnover Rate and Statistics
The staff turnover rate throughout 2022 was around 6%.
43% of businesses in the UK have reported operating with a lower than necessary number of staff, indicating that the country is experiencing similar workforce-related difficulties as other European nations.
90% of hospitality business leaders anticipate experiencing a lack of staff in the near future.
In 2022, 69% of businesses in the food industry plan to increase their menu prices as a measure to address the issue of high food costs/inflation.
The market size of the hotel industry is at GBP 19.76 billion, still down from 2020 when it was at GBP 23.52 billion.
In 2024 there was a 46% increase in hospitality job adverts.
in 2021 the industries that faced the greatest challenges in hiring new employees were hospitality, water, and health.
Impact of Employee Turnover on the UK Economy
High employee turnover can have a negative impact on a company’s bottom line, as the cost of replacing employees can be significant.
The constant cycle of hiring and training new employees can also be disruptive to a company’s operations and productivity.
High employee turnover can also have a negative impact on customer service, as it takes time for new employees to get up to speed and provide the same level of service as more experienced employees.
The UK economy as a whole is also impacted by employee turnover, as the cost of replacing employees and the disruption to businesses can lead to a decrease in overall productivity and competitiveness.
Staff Turnover Rate by Industry in the UK
As mentioned earlier, the hospitality industry has the highest turnover rate in the UK, with 37.6% of employees leaving their jobs each year.
The retail industry has a turnover rate of 33.6%, while the education sector has a turnover rate of 22%.
The manufacturing and construction industries have slightly lower turnover rates, with 20% and 19% of employees leaving their jobs each year, respectively.
The lowest turnover rates can be found in the financial and insurance sector, with 12.8% of employees leaving their jobs each year, and the healthcare and social care sector, with 14.8% of employees leaving their jobs each year.
Sources:
lightspeedhq – State of the UK Hospitality Industry
statista – Hotel Industry Market Size
statista – Hotel Occupancy Rate
restaurantonline – High Rates of Hospitality
marshcommercial – Retaining Staff
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