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.
Australian wage growth held steady in Q1, increasing by 0.8% q/q. This has taken the y/y pace of growth to 3.7%.
Head of Macroeconomic Forecasting at Oxford Economics Australia Sean Langcake speaks on the recent WPI data release in Australia with Sky News, noting that wage growth held steady in Q1, increasing by 0.8% q/q which has taken the y/y pace of growth to 3.7%Find Out More
Japan: The impact of structural labour shortages on inflation
We have revised up our long-term wage and inflation projections based on a larger impact from structural labour shortages due to adverse demographic trends. Even after raising our wage growth assumptions by 0.5ppts on average over 2024-2030, however, we still forecast inflation only reaching 1.4% in 2030 – well short of the 2% target.Find Out More
China consumer and office sectors drive city jobs growth this year
Cities with the most favourable demographics and with strength in the consumer- and office-based sectors are set to power China's economic recovery in 2023 and record the strongest rates of employment growth.Find Out More