Losing talented staff costs UK £42bn a year

UK EMPLOYERS are facing an annual £42bn bill to replace top talent, while almost a quarter of employees are looking for a new job because of insufficient pay.

According to new research from audit giant PricewaterhouseCoopers (PwC), the cost of replacing a competent member of staff equals roughly a year of that person’s salary – on average £25,000 – for each company.

The figure reflects the costs associated with lost skills and productivity, replacement charges and training of new recruits.

Twenty-four per cent of the 1,148 workers polled by PwC said they were either looking or intend to look for another job because pay is insufficient.

“Companies often vastly underestimate the financial benefits of retaining existing employees… Many employees who sat tight during the downturn may now be looking for new opportunities elsewhere,” said Richard Phelps at PwC.

Meanwhile, more workers are quitting their jobs in the UK compared to other mature economies, with annual resignations averaging 10.4 per cent. That figure is seven per cent in the US and five per cent in both France and Germany.