HR report shows employee turnover at highest rate in years

Over 54% of employers have or will increase salaries this year in an effort to retain staff, after employee turnover doubled from 2020 to 2021

Adare Human Resource Management expects the rate of employee turnover in Ireland to reach up to 18.2% this year. Picture: Gareth Chaney/Collins.

Employee turnover in Ireland more than doubled from 2020 to 2021, according to a new report.

The HR Barometer Report was released today, showing a 10% year-on-year increase in employee turnover from 2020 to 2021. Last year's rate of 18% was the highest figure seen since the report started six years ago. 

Adare Human Resource Management, which runs the report, expects turnover to increase further this year, reaching up to 18.2%.

According to the research, the biggest draws for leaving an employer were higher salaries, career progression, and a better work-life balance.

Increasing salaries

To address retainment challenges, 54% of employers surveyed said they have or will be increasing salaries in 2022.

Retention and employee engagement were shown to be the top HR priority for the employers surveyed.

“While the market is seeing increases in salary, total reward is not just about the financial benefits," said Sarah Fagan, Managing Director of Adare Human Resource Management.

"It should incorporate the intrinsic value brought through business culture. It recognises and shares the successes of employees, it balances paid benefits with those of a non-financial value. And, most importantly, it considers the employee experience as an asset that requires the right investment.

“Now more than ever, investment in people is of critical importance." 

Remote working

Ms Fagan said that while flexible working arrangements were introduced last year by nearly 40% of employers, the concept of remote work has been on many employers' agendas since before the pandemic.

“While remote and hybrid working really came to the fore during Covid-19, our research shows that it has been at the top of employers’ agendas since 2018," Ms Fagan said.

“It is broadly accepted that flexible, blended, hybrid, and remote working is here to stay. The Right to Request Remote Working Bill 2021 reinforces the Government’s commitment to the remote working strategy and provides some clarity to employers.

"Employers need to take the time now to assess the business needs in line with potential remote working requests."

The report also showed that the cost of recruitment has increased to €7,491 per employee, up from €4,215 in 2021. The figure nearly doubles for larger businesses (those with more than 250 employees) to an average of €14,690 per employee. 

"With an expected turnover of one-fifth of this group of businesses, the financial cost for recruitment for these organisations is significant."