Friday 18 October 2019

Cost of lost staff averages €14k

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Stock image

Shawn Pogatchnik

THE cost of replacing staff and the rate of employee turnover are both rising as Ireland nears full employment, according to a nationwide survey of HR managers.

The 2019 HR Barometer published yesterday by Adare Human Resource Management found that three-quarters of 257 private and public employers said they had increased salaries this year to retain staff. Despite this, they said, their loss of talent was accelerating as workers landed more attractive, better-paid jobs elsewhere.

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The report found that staff turnover averaged 14pc last year, up 4 percentage points from 2017, while the cost of recruiting a replacement averaged €14,450, up 10.3pc. Nearly half said it was taking longer to fill posts.

Adare chairman Kieran Mulvey, the former director general of the Workplace Relations Commission (WRC), said the shortage of skilled labour in a tight labour market combined with "housing and rental demands and increasing transport and health costs" had driven employee remuneration 4pc higher on average this year.

"The onset of Brexit this autumn could have a very salutary effect on this trend!" he remarked in the report's foreword.

Managing director Derek McKay said rising salaries and staff turnover in many sectors were "not surprising given we are now at near full employment".

The report found 38pc of employers experienced cases of staff conflict last year, with inappropriate personal relations between employees (42pc), poor communication (38pc) and ineffective line management (20pc) the most common issues. Some 43pc of those complaints ended up in the WRC or Labour Court.

Mr McKay said employers must "effectively and quickly resolve issues before they escalate into something more serious or become 'formalised' in the WRC or Labour Court, which will result in a much more complex and costly situation".

Adare provides services in employment law, industrial relations and HR management.

Irish Independent

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