Is Job Turnover Decelerating? [Report]
The Chartered Institute of Personnel and Development is a leading organization which deals with research and analysis in the vital field of HR, in the midst of a constantly evolving professional workspace.
Since they’ve been endeavoring to analyze past trends which may help companies assess workforce and logistical strengths and weaknesses in the times to come, as well as to initiate informed conversation into methods of overcoming potential problems and future shortfalls, the CIPD has released a series of reports under the umbrella title of “Megatrends”.
These publications essentially concern themselves with discussing logistical issues of importance to the HR industry, with the first release addressing the ‘bread-and-butter’ issue of job turnover in UK.
Being a vital metric for overall workforce performance in any institution, this report consists of 14-pages worth of comprehensive discussion regarding this phenomenon, including past economic and social trends which may have led to this situation.
Job turnover has been on the decline since its peak of 4.5% in 1998
Though the complete report is available below for complete perusal, here’s a short summary of the key findings regarding job turnover:
- By the estimation of the Labour Force Survey, 2.6% of employees left their jobs between October to December in 2012, out of which 1% left their jobs involuntarily due to redundancies or dismissals.
- Job turnover has been on the decline since its peak of 4.5% in 1998, and has levelled off after a sharp fall in 2008-09. Moreover, in recent years, average job tenure seems to have increased slightly beyond normative levels for the first time since mid-1970s.
- One likely reason for the falling job turnover is the economic condition since 2008, which has led employees to hold onto present or older jobs more strongly rather than looking for suitable new jobs. Another possible reason is also that cost of job exit to employees, overall job satisfaction, and employee engagement have all been on the rise as well. Moreover, the labour market conditions would require significant improvements and provide more vacancies before higher turnover rates can be seen again.
- While lower job turnover rates bring greater stability to the workforce, this also means that fewer people will actively seek new employments – which may make it difficult for companies to maintain their talent pipelines. As well, it will limit options for organizations to access sufficient new thinking to drive forward innovation, since lesser people are likely to free up their positions within the firms.