According to the latest figures from the annual Labour Turnover survey, from the manufacturers’ organisation, EEF, the number of people leaving companies rose from 12.3% in 2016 to 13.2% in 2017, although the rate still sits below that of 2015, which was 15%.
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From all the sectors analysed rubber, plastics and chemicals sector saw the highest turnover rates at 15%. The East of England rated highest at 17.7% when location was considered.
Regarding size of companies, those with 101–250 employees had the greatest turnover at 15.6% compared with smallest employers (1–50 employees) which experienced turnover rates of 9.3%.
“The pickup in the rate of churn could be a sign that activity is on the rise across the sector, with employees on the hunt for new opportunities and employers able to lure people into new vacancies with attractive packages,” explained Lee Hopley, chief economist at EEF. “There are, however, a few things that could be having an impact on rates of labour turnover, such as the potential loss of EU workers following the decrease in net migration from the EU. We will also be watching with interest this year to see if there are calls for bigger pay packets as demand for skills outstrips supply and what the impact of increased labour churn might have on productivity through disruption to business processes.”