Labour turnover fell to 14 percent last year – down from 16 percent in 2015. Biggest drop is seen amongst manual workers where turnover has fallen from 17 percent to 12 percent year-on-year. Comment from Lee Hopley, Chief Economist at EEF.

EEF says a range of factors are contributing to the number of workers sitting tight in their current roles. Labour turnover has fallen year-on-year as workers and employers respond to a range of economic and socio-economic factors, according to the latest Annual Labour Turnover data from EEF, the manufacturers’ organisation. The data shows that labour turnover – people leaving companies through resignation, redundancy, retirement or dismissal – fell last year to 14 percent from 16 percent in 2015. The biggest drop can be seen amongst manual workers, where turnover has fallen from 17 percent to 12 percent year-on-year.

Smaller firms are seeing the lowest levels of staff turnover, with those employing 50 or under seeing 10 percent churn compared to 17 percent for larger employers (251+ employees). The South West boasts the lowest labour turnover in Great Britain, at just 10 percent. Lee Hopley, Chief Economist at EEF, says: “These turnover figures reflect a number of diverse economic factors affecting employees and employers alike last year. These range from workers wanting to sit tight because of Brexit uncertainty through to firms looking to hold onto people in order to capitalise on the export boom coming from the weaker pound and stronger outlook in overseas markets. “What we do know is that with staff wanting to stick around for longer, firms need to keep a close eye on productivity levels and ensure that they have the right culture and processes in place to keep employees motivated and focussed.”