Staff changes prove costly

This could be due, in part, to it taking around eight weeks to recruit for an existing position with a company, and around seven to hire for a new role, according to the survey of 700 UK employers.

The research, undertaken by Loudhouse, also found that UK companies are struggling to keep costs down of replacing staff. Its authors estimated that hiring a new recruit costs an additional 30-36% of their first year’s salary.

It seems though that businesses are not addressing the root of the problem – half of employers are unable to identify why their staff leave. Moreover, the majority of companies did not seem to rate staff retainment as a high-level concern, with just 15% saying the reasons for employees departing the company was an issue being examined by the board.

Commenting on the research, Steven Kirkpatrick, Adecco’s managing director, agreed that “this should be a board issue and too often its not”.

Furthermore, the costs of recruitment and the effects of staff changes on profitability should be tracked closely he said. “Businesses need to look very carefully at what they’re spending, why they’re spending it, and perhaps how they can avoid doing so in the first place.”

© Crimson Business Ltd.