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Post-pandemic talent exodus could cost businesses up to £17 billion
17 May 2021 Retention Talent Acquisition
Four in 10 UK employees are looking to change roles in the next year, according to a new study, causing businesses in the UK and Ireland up to nearly £17 billion a year.
In a survey of 500 HR decision makers and 2,002 workers across the UK and Ireland between 12 and 22 March 2021 researchers found 38% are looking to move positions.
Once the COVID-19 pandemic is over, 55% of 18-34-year-olds plan on leaving their current employer, according to the research by HR software company Personio.
The company claims the cost of additional staff turnover over the next 12 months could amount to an estimated £16.9 billion charge for businesses in the UK and Ireland – at a cost per business of £10,076. SMEs alone would face estimated costs of up to £5.8 billion Personio claims.
Ross Seychell, Chief People Officer at Personio, said: “It’s not surprising that people are looking to move roles as the economy improves, as many people have stayed put and put job changes on hold while the labour market was more uncertain.
“However, now, as the economy recovers and people have more confidence in the job market, not only will people have more opportunity and confidence to leave their jobs for pastures new, but burnout and frustration with lack of employer support during the pandemic may push them out the door. As employers plan their return to the office, they should make sure to handle this process with care and consideration.
“At a time when employees are ready to walk, any change that’s poorly managed could risk setting off a raft of resignations. At this decisive moment, it’s critical that employers involve their employees in what the future of work in their company should look like in order to avoid yet more disconnect and find a way forward that works for the whole business and its people.”
The research is concerning for specific sectors where there are already significant issues around talent attraction and retention.
Nicole Sahin, Founder and CEO at Globalization Partners, said: “Pre-Covid, organisations were already struggling to address the emerging skills gaps associated with operating in a digital economy. As a result, firms are having to reskill their existing talent or be lucky enough to find and hire the talent they need to fill emerging skills shortages.
“However, lessons learned during the pandemic mean leaders now appreciate that their talent pool is no longer limited to within 50 miles of their offices. Having the infrastructure in place that makes it possible to remotely interview, onboard and support talent that is hundreds of miles away means that hiring talent from anywhere has become an achievable reality.
“For organisations facing talent shortages in their own country, this means they are now free to look further afield for the right person for the job. Remote working represents a major opportunity for all since it creates an integrated workforce in which location no longer defines access to career opportunities or the ability to contribute.”