Recent release | 03 Mar 2014

The Cost of Brain Drain

Firms have long understood that losing staff is a key risk to success, but the financial cost of staff turnover has received little attention.

Working with Unum, this report analyses the financial impact of staff turnover across five key sectors (IT/Tech, Accounting, Legal, Media/Advertising and Retail). These costs are split into two main components. Firstly, and most importantly, is the cost of lost output while a new worker gets up to the standard expected of them (“optimal productivity”). The second, which is probably more familiar, is the logistical cost of finding and absorbing a new worker.

These costs vary substantially across three key variables – the sector in question, the size of the firm hiring a new employee, and the background of the worker being recruited. 

Our report for Unum used a bespoke survey dataset as well as official data from the Labour Force Survey to analyse the costs firms in five key sectors face when they replace professional workers. The report attracted extensive national press coverage, including in the Financial Times, the Independent and the Telegraph, as well as in several recruitment and HR related publications.

Related Services

Post

Most Canadian metros face a winter recession

We expect Canada to enter a recession in Q4 2022 and as a result, most metros including Toronto, Montreal, and Vancouver will experience economic contractions until mid-2023. A few smaller metros will avoid recession, however, including Barrie, ON, and Regina, SK.

Find Out More
CEE

Post

Why wage-price spirals will not persist in the CEE

The acceleration in nominal wage growth rates in Central and Eastern European (CEE) economies over the past couple of quarters has sparked growing fears of wage-price spirals taking hold in the region. We think such fears are overblown. That said, while we don't expect the self reinforcing cycles of higher inflation and wage growth to persist, earnings growth is likely to remain elevated, keeping core inflation in the CEE higher for longer. Several factors mitigate the probability of wages keeping pace with – not to mention exceeding – inflation in the near-term.

Find Out More
Japan labour market

Post

Working hours decline despite rising labour participation in Japan

Japan's labour force has increased due to rising labour participation by females and seniors, despite a decline in the working-age population. However, hours worked per capita have been on a downward trend, increasingly weighing on GDP and household incomes.

Find Out More