Did you know that one in three UK employees won’t be in the same job this time next year? That’s how fast the labour market is shifting and how hard it’s becoming for employers to hold onto their people. Whether it’s pay or simply better opportunities elsewhere, employee turnover is accelerating at a pace that’s forcing employers to rethink how they attract and retain talent.

In this piece, we look at the statistics behind why people leave, who tends to stay, and how these movements shape workplace culture in the UK. But first, let’s understand what employee turnover is.

 

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What Is Employee Turnover?

Employee turnover measures the rate at which employees leave a company and are replaced by new hires. It includes voluntary departures, such as resignations, as well as involuntary ones like layoffs or retirements.

 

What is UK’s Employee Turnover Rate?

According to the Chartered Institute of Personnel and Development (CIPD), the UK’s annual turnover rate is 34%.  This is the official turnover rate, counting mostly people who leave their current job and go to a new employer. And that’s only a slight decrease from 16% in 2024. This splits into 27.4% who move to a new employer and 6.6% who are not working one year later, which could be due to study, retirement or long-term sickness.

 

Top UK Employee Turnover Statistics 

• The global employee turnover rate has risen to approximately 20% in 2024 – this is up from 18% in 2023 - The Work Institute
• The average cost of turnover per employee is £30,614 - Oxford Economics 
• The proportion of employees with a tenure of less than 12 months has reverted to the pre-pandemic level of around 16% - Labour Market Outlook (Spring 2024) 
• 41 out of every 100 employers who selected candidates in the last 12 months said new recruits always, mostly or sometimes resigned within the first 12 weeks - Resourcing and Talent Planning 2024 
• Smaller organisations experience higher turnover than larger organisations - Cendex 
• UK employers invest around £42 billion in employee training every year as part of efforts to curb employee turnover. This averages out as a spend of 1530 per employee annually - Department for Education UK
• 56 out of every 100 employers found it more challenging to retain talent over the past year - Resourcing and Talent Planning 2024  
• 42% of Employee Turnover can be prevented but is ignored - Gallup
• Raising pay was one of the most common responses of those with retention difficulties, topped only by improving support for employee wellbeing  - Resourcing and Talent Planning 2024 
• Organisations are increasingly positive regarding the impact of hybrid and remote working on engagement and retention, with 42% of those that offer this saying it has increased engagement and 45% saying it has increased retention - Resourcing and Talent Planning 2024 

 

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Industries in the UK With the Highest Employee Turnover

Hospitality has the highest employee turnover in the UK, with 52 out of every 100 employees leaving. Sectors such as Agriculture and Retail also experience higher turnover, with employees moving in and out more frequently.

 

Rank	Industry	Left for New Employer + Stopped Working (%)	Stayed With Same Employer (%)
1	Accommodation & Food Services	52.2%	47.8%
2	Agriculture, Forestry & Fishing	45.3%	54.7%
3	Wholesale, Retail & Repair of Vehicles	41.6%	58.4%
4	Other Service Activities	38.1%	61.9%
5	Water Supply, Sewerage & Waste	37%	63%
6	Health & Social Work	35.7%	64.3%
7	Information & Communication	35.2%	64.8%
8	Construction	35.1%	64.9%
9	Admin & Support Services	34.8%	65.2%
10	Education	33.7%	66.3%
11	Arts, Entertainment & Recreation	33.2%	66.8%
12	Real Estate	33%	67%
13	Manufacturing	31.7%	68.3%
14	Mining & Quarrying	31%	69%
15	Transport & Storage	29.8%	70.2%
16	Professional, Scientific & Technical Activities	29.5%	70.5%
17	Electricity, Gas & Air Conditioning Supply	27.1%	72.9%
18	Extraterritorial Organisations	27.1%	72.9%
19	Financial & Insurance Activities	26.9%	73.1%
20	Public Administration & Defence	24.5%	75.5%

Industries in the UK With Long-Term Employee Retention

The Public Administration sector has the highest employee retention in the UK, with 76 in every 100 employees staying with the same employer for years. Industries like Finance and Utilities also tend to retain employees for many years, reflecting stability and long-term career paths. 

 

Rank	Industry	Stayed With the Same Employer (%)	Turnover Rate (%)
1	Public Administration & Defence	75.5%	24.5%
2	Financial & Insurance Activities	73.1%	26.9&
3	Extraterritorial Organisations	72.9%	27.1%
4	Electricity, Gas & Air Conditioning Supply	72.9%	27.1%
5	Professional, Scientific & Technical Activities	70.5%	29.5%
6	Transport & Storage	70.2%	29.8%
7	Mining & Quarrying	69%	31%
8	Manufacturing	68.3%	31.7%
9	Real Estate	67%	33%
10	Arts, Entertainment & Recreation	66.8%	33.2%
11	Education	66.3%	33.7%
12	Admin & Support Services	65.2%	34.8%
13	Construction	64.9%	35.1%
14	Information & Communication	64.8%	35.2%
15	Health & Social Work	64.3%	35.7%
16	Water Supply, Sewerage & Waste	63%	37%
17	Other Service Activities	61.9%	38.1%
18	Wholesale, Retail & Repair of Vehicles	58.4%	41.6%
19	Agriculture, Forestry & Fishing	54.7%	45.3%
20	Accommodation & Food Services	47.8%	52.2%

 

What Is the Cost of Employee Turnover in the UK?

Replacing an employee in the UK can be expensive. On average, it costs 6 to 9 months of their salary to hire and train a new worker. This total includes recruitment costs, training expenses, and the salary of the new employee, according to Centric HR.

 

What is a Good Employee Turnover Rate?

A good employee turnover rate is one that balances healthy workforce movement with stability. According to HR experts, around 15% annually is considered a reasonable benchmark for most organisations in the UK.  Rates significantly higher than this can signal problems such as low engagement, poor onboarding, or insufficient pay and career development opportunities.

 

Top Drivers of Employee Turnover in the UK

Employee turnover doesn’t happen randomly. There are clear reasons why people leave their jobs. The following are the top reasons employees in the UK move on from their current roles.

1. Poor Onboarding System

A weak or unstructured onboarding process is a major reason employees in the UK are leaving their jobs. According to Glassdoor, poor onboarding is responsible for 28% of employee turnover. This resonates with CIPD's report showing that more than a quarter of UK employers who have attempted to fill vacancies in the last 12 months have had new starters fail to turn up on their first day.

 

2. Pay and Compensation

Salary remains one of the biggest motivators for leaving. Among disengaged employees in the People Management Survey, 44 out of 100 said they would leave their current role for a pay increase of 20% or less, while even 37% of engaged employees would consider leaving for a higher salary.

 

3. Bad Management

Sometimes, it’s not the job or the pay. It’s the people. Research from the Chartered Management Institute (CMI) found that almost one-third of UK employees quit due to bad management or poor workplace culture.

 

4. Lack of Career and Professional Development Opportunities

In a LinkedIn Learning study, nearly 9 out of 10 employees say they would stay longer at a company that invests in their career development.

 

Key Factors That Reduce Employee Turnover

Employee turnover is one of the biggest challenges facing companies today. Kronos reports that 87% of HR leaders consider employee retention a top priority. High turnover not only disrupts business operations but also drives up costs in recruitment, onboarding, and lost productivity. Understanding what keeps employees happy and engaged is critical to building a stable workforce.

 

1. Effective Onboarding

A strong onboarding process sets the tone for a new employee’s experience. According to Glassdoor, proper onboarding can increase retention rates by 82%. When employees feel welcomed, supported, and trained from day one, they’re far more likely to stay long-term.

 

2. Job Security

Employees want to feel confident in their roles. Surveys from Paychex and Executive Networks show that job security is a major driver of retention. Providing clear communication about role stability, career paths, and company growth helps employees feel secure and valued.

 

3. Professional Development Opportunities

Providing opportunities for learning and career growth can make a measurable difference. Employees with access to professional development are 15% more engaged and have 34% higher retention than those without, according to Better Buys. Investing in workshops, courses, and mentorship programs shows employees that their growth matters. 

 

4. Remote Work and Flexibility

Flexible work arrangements aren’t just a perk. They’re a retention tool. Owl Labs reports that supporting remote work programs has a meaningful impact on employee retention, giving employees the flexibility to balance work with their personal lives.

 

Conclusion

Employee turnover is an inevitable part of the UK labour market. With around one in three employees changing roles each year, understanding the patterns, drivers, and costs of turnover is essential for employers looking to retain talent and maintain operational stability. By understanding why employees leave and proactively addressing those drivers, companies can reduce costs, enhance culture, and create a workplace where people want to stay long-term.