Lost staff cost businesses billions

Date: 06/10/2010

Businesses in the UK are spending billions of pounds filling vacancies left by staff who have itchy feet, it has been claimed.

According to new research from international accountancy firm PricewaterhouseCoopers (PwC), despite high unemployment levels, the number of staff changing jobs is particularly high - and so is the cost of replacing those workers.

The firm claims that the British economy would be £42 billion better off if firms could improve employee retention.

PwC's study shows the importance of maintaining employee motivation with reward and recognition programmes, which have been shown to boost worker retention.

However, the firm said that many firms are putting less effort into staff retention than they were previously.

In 2009, PwC noted, 54 per cent of businesses claimed to have a special focus on retaining top talent, but this figure has fallen to just 36 per cent this year.

Recently, Anna Marie Detert, head of human capital at Buck Consultants, told HR Magazine that the issue of employee motivation and staff retention was one that should be addressed by managers.

Written by Elizabeth Mewes
 

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