Job-hopping costs the UK economy more than £71 billion a year
An online employee referral recruitment platform has found that job-hopping costs the UK economy £71.6 billion a year, based on figures from the ONS¹ and research by Glassdoor.
Real Links investigated how much recruiting costs via traditional methods after research showed a 39% uplift in retention rates when employee referral recruitment is used. Statistics show that hires made as a result of employee referrals enjoy greater job satisfaction and stay longer at companies - 46% of employee referral hires stay for more than one year compared to only 33% of hires through career sites².
There are currently 32.53 million people in work in the UK and, on average, UK workers will change job every five years³. With figures suggesting it costs employers an average of £11,000 per person hired⁴, the overall cost of job-hopping to the UK economy is £71.6 billion each year.
To highlight how much companies can save when an employee referral method is adopted, Real Links has created an onsite ROI calculator. This allows employers to enter a few key figures, such as how many employees they have, and the calculator will inform them of the potential talent pool size in their employees’ networks and the amount of money they can save on recruitment costs.
Real Links has made the calculator freely available on their website for businesses to use: https://www.reallinks.io/
The Real Links platform allows UK business owners and HR teams to access a potential talent pool of hundreds of thousands of referral candidates and creates anonymised profiles, ensuring there is no unconscious bias when selecting candidates. By sending employees referral recommendations when their connections are matched to a job and using gamification to incentivise and reward employees for using the platform, employee engagement is increased which leads to greater retention over the long term.
Sam Davies, CEO and co-founder of Real Links, said: “We’re hoping that with this calculator, employers will be able to see how much they can save by adopting our less traditional and more technological referral recruitment method.
“Historically companies have struggled to find an effective recruitment solution that addresses retention. The potential cost savings – not just in direct recruitment costs, but over the longer term – can be significant. That’s why we built the ROI calculator, to highlight just how much can be saved by using referrals rather than traditional recruitment methods.”
²https://theundercoverrecruiter.com/employee-referral-program/
³https://www.bbc.co.uk/news/business-38828581
⁴https://croner.co.uk/culture-performance/cost-of-staff-turnover/
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