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Third sectorLatest NewsPublic sectorLabour marketEmployee engagement

Not-for-profits saw most employee churn in 2021

by Jo Faragher 9 Feb 2022
by Jo Faragher 9 Feb 2022 Total labour turnover for all companies was 14.4% during 2021
Shutterstock
Total labour turnover for all companies was 14.4% during 2021
Shutterstock

Not-for-profit employers had the highest level of labour turnover in 2021, according to analysis by Cendex.

While total labour turnover for all companies was 14.4% over the course of the year, not-for-profits experienced total turnover of 18.1%, with voluntary labour turnover at 12.5%.

In private sector companies, Cendex found that total labour turnover was 11.7% and voluntary turnover 8.7%. People left the public sector more frequently during 2021, with total labour turnover at 15.6%.

Cendex found that the most notable gulf between employees quitting their jobs voluntarily and total turnover was in the education sector.

In the education sector, the total turnover rate was 15.5% while the voluntary rate was 8.7%, likely related to cost pressures faced by universities during the pandemic, meaning they were forced to make high levels of redundancies.

Labour turnover

Labour turnover rates: 2021 XpertHR survey

Measuring labour turnover 

Voluntary churn was highest in retail and wholesale companies, where this type of turnover hit a rate of 10.3% amid total workforce turnover of 15.2%. The transport and storage industry also had high voluntary turnover, at 9%.

The industry with the lowest rate of turnover, according to Cendex, was information and communications. Here, the voluntary labour turnover rate was just 4.7%.

Junior employees across all sectors were most likely to leave their roles, whether voluntarily or through redundancy. Entry-level professionals had a voluntary turnover rate of 13.6%.

Senior heads with strategic roles or senior professionals were least likely to resign – their level of voluntary turnover was just 7%.

Sheila Attwood, XpertHR pay and benefits editor, said: “While many organisations had to make workforce reductions due to the effects of the pandemic, many are now finding that employees are leaving of their own accord.

“Replacing them may not be so easy, so to counter the effects of a tight labour market and skills shortages, organisations need to build their retention strategies to meet the needs of employees.

“Tapping into employee concerns and desires, taking regular pulse checks, and keeping an eye on competitor offerings will be key to building a strong attraction and retention strategy.”

Cendex looked at leaver data from 236 organisations, collectively employing just under 500,000 people.

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Jo Faragher
Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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