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Organisations use training to stem staff turnover


Training and development's value in reducing staff turnover has been recognised in a study by the Chartered Institute of Personnel and Development.

The survey of 577 organisations found that increasing training and development is the most common method used to lower staff turnover.

And it seemed organisations were right to focus on training and development, with leavers citing lack of career and developmental opportunities as two of their main reasons for resigning.

The research showed that labour turnover - at just beneath 16% for full-time staff - has reached its lowest level for four years.

This slowdown is said to reflect sluggish economic growth, as labour turnover is at its highest when the economy is strong and labour markets tight.

However, while turnover is lower than previous years, it is still historically quite high, and employers say that even these lower turnover levels have a negative effect on organisational performance.

The CIPD is now urging organisations to calculate the true costs associated with the departure of an employee after finding that just 12% of those surveyed could approximate the expense of staff turnover to their organisations.

Key Findings:

* The level of turnover for 2003 is 15.7% for full-time staff and 13.5% for part-time workers.

* Hotel, catering and leisure sector and call centres have the highest rates of staff turnover, at around 40% in 2002.

* Low rates of turnover (i.e. around 10%) are generally found in manufacturing, transport and storage, and paper and printing.

* The average cost of labour turnover in 2002 for the UK was £4,301 per leaver. The costs of turnover are highest for managers (£6,807), followed by professionals (£5,864).


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