More than one-third of UK employees leave their job annually: Here’s how to prevent it
With a whopping 35% of employees choosing to leave their jobs each year, businesses are facing what feels like a never-ending recruitment battle.
A high turnover rate can make it increasingly difficult to maintain a stable working environment, disrupting teams and taking time for new starters to be trained. As well as being an incredibly time-consuming process, replacing an employee can cost your business up to 2X their annual salary.
With the right cloud-based HR software, your business can gain valuable insights into the potential reasons your turnover has increased over the recent period.
In this article, we discuss the common reasons that employees are leaving their jobs, how your HR software can be used to tackle this, and what exactly to look out for when choosing which cloud-based HR software to use.
Why is Employee Turnover So High in 2025?
Although employee turnover is to be expected within every business, many have reported a noticeable increase over recent years. The reasons for an employee deciding to leave their role can vary massively, but let’s discuss some of the most common.
Lack of progression opportunities
For ambitious employees striving to achieve their long-term career goals, not having the opportunity to grow can leave them searching elsewhere for an opportunity. In fact, a whopping 85% of employees say a lack of career growth is their main reason for leaving.
In smaller businesses, it can be trickier to offer growth opportunities when the hierarchy is small. Although managers may still be able to offer small promotions, title changes, or pay rises, this may not be enough for employees looking to climb the ladder.
Issues with management
Failing to get along with their manager can be a driving factor for employees deciding to leave a company. Whether there is poor communication, different approaches to tasks, or a clash in personality, this can make the working environment very difficult.
Although this can be a tough decision to make if the employee is otherwise happy within the company and role, a bad relationship with their manager can make them feel as if they have no other choice.
Unrealistic workload
Gone are the days of long workdays and tight deadlines being considered the ‘norm’. In today’s age, 78% of job seekers prioritise their work-life balance over salary.
If an employee feels like they are being pushed too hard, it is inevitably going to leave them enjoying their job less. Some overtime and stressful projects are to be expected, but when this becomes a daily occurrence, it can leave people wanting to find a new employer that respects their capacity.
Desire to try something new
Making the decision to start a completely new career path can be an intimidating prospect, creating feelings of uncertainty and losing the security of a current job. Career changes are becoming increasingly common nowadays, seeing more and more people take the plunge and follow their dreams.
With so many resources and opportunities available online, more people are choosing to teach themselves a new skill so they are better equipped to make the jump to a career that better suits them.
How Cloud-Based HR Software Can Minimise Turnover
Having a high employee turnover not only causes havoc within your business, but can also be a big deterrent for job seekers who are considering applying. Seeing that a company is frequently rehiring can leave potential applicants asking why employees are leaving – a red flag that can leave them questioning whether it is a company they want to work for.
A good HR software can improve the way your business manages employees by streamlining processes and utilising data insights. By using the analysis capabilities of AI to report on employee retention rates and help identify the causes behind high employee turnover, changes can be made to lower the rate.
One of the best ways of improving employee retention through AI is to look for trends in historical data. Being able to generate reports in seconds means your business can analyse employee data to look for any spikes in the results. Whether this be a noticeable jump in employees from a certain department, of a certain demographic, or under a certain manager, being able to identify issues means you can take the necessary action.
In addition to being able to delve into the issues within your own team, HR software can be used to compare your business turnover to that of your competitors. Being able to see how the average turnover rate looks for other companies within your sector will help you understand if you’re facing an issue within the business or whether your turnover aligns with the current industry rates.
Choosing the Best HR Software For Your Business
With the HR industry changing so drastically over recent years, having reputable cloud-based HR software that adapts to the landscape is essential. A system that utilises modern technology capabilities to streamline everyday operations will not only make things easier for the HR department, but will lead to a more organised work environment for your employees.
Your HR software should be scalable. As your business expands, the system should have the capacity to support the growth. Having to switch HR software providers whenever the demands of the business rise is a big project that is likely to incur challenges and disruptions to the running of operations.
User experience is another huge consideration to make when choosing the best cloud-based HR software. Since all employees should be able to access the system to find their personal documents, training materials, and holiday request forms, the interface needs to be easy to navigate. Having a good central system in place will take a huge weight off the HR department, allowing them to focus on the more human elements of their job and consequently making employees feel more supported at work.
Having an effective system in place to streamline operations and provide valuable insights will inevitably result in a reduced turnover, helping you find better ways to retain employees. By choosing HR software that caters to the needs of your business, you can be prepared for what is to come and ensure that you are managing your team in the most efficient way possible.