Employee retention has always been a hot topic for UK businesses, but 2025 brings an even more pressing challenge. A new report reveals a significant rise in attrition rates, with nearly one in four UK workers planning to leave their roles.
That’s a worrying trend, especially when compared to other major economies. While turnover is increasing globally, the UK’s numbers outpace those of the US and Australia. Germany is the only exception, with slightly higher rates.
This trend raises important questions. Why are so many UK workers deciding to quit? What is driving this exodus, and what can organisations do to keep their talent?
The cost of turnover
Replacing employees is not just inconvenient; it’s expensive. The report estimates that the cost starts at 30% of an average employee’s salary. For high performers, it could climb to 200%. With the average UK salary sitting at £37,400, the financial impact is eye-watering. Businesses face replacement costs ranging from £11,200 to over £74,900 per employee. Add to that the loss of productivity, knowledge, and team morale, and the stakes become even higher.
Why are workers leaving?
The report highlights several factors driving attrition rates in the UK
Economic uncertainty
The UK has faced ongoing political and economic instability in recent years. This affects job security and overall job satisfaction, leading many to reconsider their positions.
Workplace culture
Employees are increasingly looking for workplaces that align with their values. Poor management practices, lack of recognition, and disengagement are pushing people out the door.
Career development
Workers want opportunities to grow and advance. When organisations fail to provide clear paths for development, employees are quick to look elsewhere.
How businesses can respond
Organisations cannot afford to ignore these trends. The good news? There are proactive steps they can take to retain their best people
Focus on engagement
Creating a positive workplace culture is critical. Recognising achievements, encouraging collaboration, and fostering a sense of belonging can keep employees invested.
Offer growth opportunities
Employees need to see a future with the company. Regular training, upskilling, and clear career progression paths show workers they are valued.
Stay competitive with pay
Compensation remains a driving factor. Regularly reviewing salaries and benefits to meet industry standards can go a long way in improving retention.
Takeaway
The rise in UK attrition rates forecasted for 2025 presents real challenges for employers. However, with the right strategies, organisations can turn the tide. By understanding why employees are leaving and taking steps to address these issues, businesses can build a loyal, motivated workforce that thrives in today’s competitive job market.
Hosted by the Women Pivoting to Digital Taskforce in collaboration with Lloyds Banking Group, this event is for women based in Leeds who are considering a move into tech or digital roles and are interested in learning more about how to transition.
