The Great Resignation: Understanding and Addressing Employee Turnover in the UK.

UK employee turnover sits at about 34% — nearly double the global average of roughly 20%. That means one in three workers in Britain leaves their employer each year, either for another job or to step out of the workforce entirely. Understanding what drives that churn is no longer a nice-to-have for businesses; it directly affects budgets, productivity, and long-term stability.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

The labour market has shifted. UK job vacancies dropped to about 707,000 — the lowest since early 2021 — and there are now roughly 2.5 unemployed people for every open job. Yet turnover hasn’t fallen as much as you might expect, especially in sectors like hospitality, retail, and social care. The reasons are messy: pay, management quality, wellbeing support, and culture all play a role. Tech talent competition shows a similar pattern — even when outside options shrink, poor retention habits cost you.

Here’s what you actually need to know.

Key Takeaways: What the Research Reveals About Employee Turnover

When I talk to business owners about turnover, one term comes up constantly: employee churn. It’s just another name for turnover — the rate at which people leave. But the word “churn” captures something else: the revolving‑door feeling that comes when you’re always hiring and never holding on.

The True Cost of Employee Turnover

That figure alone should make any business sit up. But the real hit goes deeper. Indirect costs — administrative time spent processing resignations, management hours spent interviewing, cover during the vacancy period — are rarely tracked. A CIPD benchmarking report found only 17% of employers actually calculate labour turnover cost. Most rely on instinct, and instinct is expensive.

Industry matters too. Hospitality runs a 52% turnover rate; public administration and defence sit at about 25%. In sectors where skills are scarce — think tech, engineering, or senior finance — the loss of one specialist can stall projects and damage client relationships. The cost jumps quickly.

Common Mistakes Businesses Make With Turnover

Not measuring the cost

Only 17% of organisations calculate what labour turnover costs them. Without that number, retention initiatives become guesswork. Start tracking direct costs: resignation admin, recruitment fees, training, and productivity loss during the gap. Even a rough estimate changes how seriously you treat the problem.

Promoting untrained managers

82% of new managers in the UK start without formal management or leadership training. They’re promoted for technical skill — not people skill. The result: only 27% of workers rate their manager as highly effective. Half of employees with ineffective managers plan to quit within a year. That’s not a soft problem; it’s a retention leak.

One of the most expensive mistakes I see is treating management as a reward rather than a role that demands training. Formal manager training makes a measurable difference — trained managers are 25% more likely to address poor behaviour compared to 15% without training, according to research reported by The Guardian.

Ignoring wellbeing support

Three‑quarters of employees have left or seriously considered leaving because of poor wellbeing support. That’s not a niche issue — it’s a majority. When 85% would leave a company that doesn’t prioritise wellbeing, a healthy culture becomes a retention tool. Basic steps like mental health resources, manageable workloads, and genuine support for time off matter.

Failing to recognise effort

Nearly 20% of UK workers have never been thanked for their achievements. 59% would consider leaving if their hard work goes unnoticed. Recognition doesn’t need to be expensive — a direct thank‑you, a public shout‑out, or a small bonus can shift how valued someone feels.

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Practical Steps to Reduce Employee Turnover

Measure your turnover rate and cost

You can’t fix what you don’t track. Calculating your turnover rate is straightforward:

• 1
  Count leavers over a period

  Take the number of employees who left in the past 12 months (voluntary and involuntary).

• 2
  Divide by average headcount

  Calculate the average number of employees during that period (start + end ÷ 2). Divide leavers by that average and multiply by 100 for a percentage.

• 3
  Estimate the cost per leaver

  Add recruitment agency fees, advertising, time spent interviewing, training costs, and lost productivity during the vacancy. Use the CIPD average of £30,614 as a starting point if you have nothing else.

• 4
  Track over time

  Repeat monthly or quarterly. A steady increase signals trouble before it hits your bottom line.

Invest in manager training

The research is clear: untrained managers drive people away. 82% of UK managers start without formal training. Even basic management courses — on giving feedback, handling conflict, or supporting wellbeing — reduce the risk of losing good staff. CIPD data shows only 27% of workers think their manager is highly effective; closing that gap starts with training, not blame.

Rethink pay and benefits

Pay is the single biggest reason people leave — 71% say better pay would pull them away. But it’s not just salary. 40% of employees want additional financial benefits: salary sacrifice schemes, season ticket loans, or pension contributions. Meanwhile, 57% say health and wellbeing perks matter more than a pay rise alone. A mix of competitive base pay and targeted benefits reaches more people.

Build a supportive culture

One in three UK workers has quit because of negative workplace culture. 28% left due to a bad relationship with their manager. Creating a culture where people feel safe, heard, and valued requires more than a mission statement. It means addressing poor behaviour, understanding what your team actually values, and making wellbeing a daily priority — not just a policy.

Frequently Asked Questions About Employee Turnover

A Shifting Labour Market Means Turnover Demands Ongoing Attention

Job vacancies have fallen and unemployment has edged up, yet UK turnover stays stubbornly high — especially in sectors where culture, pay, and management quality haven’t changed. The businesses that treat retention as a continuous investment, rather than a one‑off project, are the ones that will hold onto their best people through the next economic cycle.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Building a Brand That Lasts: Lessons from Iconic UK Businesses.

Sources and Further Reading

AI in the UK Workplace: Opportunity or Threat to Job Security? — Explores how automation and AI are reshaping roles, which is directly tied to retention and skill demand.

CIPD (2026). Employee turnover and retention factsheet. 🔗

Office for National Statistics (June 2026). Jobs and vacancies in the UK. 🔗

The Guardian (October 2023). Bad management has prompted one in three UK workers to quit. 🔗

People Management (2024). Three‑quarters of workers have quit or considered leaving due to poor wellbeing support. 🔗