A third of employees plan to quit their job within the next two years, according to a survey.
The Retention Dilemma, by management consultancy Hay Group, says that employee turnover has increased by a quarter in the last five years.
The report claims that it can cost the equivalent of 18 months salary to replace a top level executive and resignations can reduce a company’s annual profits by around 40 per cent.
The percentage of employees that plan to remain with their current employer for more than five years rose to nearly 80 per cent where respondents believe that managers take an interest in their careers.
“With job cuts announced daily and the threat of a recession looming, it is more important than ever that employers hang on to valuable employees, or they may find that they will lose them at the time they need them most,” said Sallyanne Houlton an associate director of Hay Group.
“Employees loyalty towards employers has been severely dented, they now expect to manage their own career and in most cases will act quicker than their employer if they are not happy.”
The survey questioned nearly one million employees working for 330 companies in 50 countries.