Labour turnover among financial specialists and in the finance industry

This section of IRS's guide to labour turnover 2007/08 covers information about the resignation rates of staff working in financial roles and those working in the financial services industry itself. Other sections.

Accountants' labour turnover
Actuaries' labour turnover
Financial staff's labour turnover
Leasing and factoring's labour turnover
Pensions staff's labour turnover
Our research
Table 1: Financial specialists' and accountancy staff's resignation rates
Box 1: Directory of labour turnover sources

KEY POINTS

  • The resignation rates of accountancy staff have typically risen by around 1.5 percentage points. The rate for a senior accountant is now 6.2%.

  • The resignation rate of actuaries has fallen by almost a half, to 6%.

  • The resignation rate of financial staff as a whole across the UK economy has risen from 4.2% to 5.6%.

  • The resignation rate for staff in leasing and factoring companies has risen from 7.5% to 10.4%.

  • The resignation rate for pensions staff has risen from 4.9% to 8.1%.
  • Accountants' labour turnover

    The latest Salary Survey of Financial Staff (on the Celre website) (see table 1) from Remuneration Economics shows that resignation rates of accountancy roles have increased between 2005 and 2006 by around 1.5 percentage points.

    Specifically, the resignation rate of senior accountants has risen from 4.4% in the 12 months to 1 September 2005 to 6.2% in the 12 months to 1 September 2006. Over the same period, the resignation rate for an accountant has risen from 4.3% to 5.9%, and that of a junior accountant from 4.7% to 6.3%.

    The resignation rate for all types of financial staff has risen from 4.2% to 5.6% in this period.

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    Actuaries' labour turnover

    Resignation rates among actuaries tend to be volatile from year to year, according to Remuneration Economics' Salary Survey of Actuaries and Actuarial Students (on the Celre website). In its latest survey, the resignation rate has fallen by almost half (a drop of 44%) from 10.8% in the 12 months to 1 September 2005 to 6% in the 12 months to 1 September 2006. The previous survey, in contrast, had recorded a threefold increase in turnover, from 3.2% to 10.8%.

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    Financial staff's labour turnover

    The latest Remuneration Economics'  Salary Survey of Financial Staff (on the Celre website) (see table 1) provides detailed analyses of labour turnover for financial staff working in organisations across the UK economy.

    Labour turnover rates are analysed by reason for leaving, responsibility level, region, broad sector and function, plus trends over time.

    Published in November 2006, its latest study finds that the resignation rate has risen from 4.2% in the 12 months to 1 September 2005 to 5.6% in the 12 months to 1 September 2006. The current rate is the second highest to be recorded in its five latest annual surveys, and marks the third year running that the rate has risen.

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    Leasing and factoring's labour turnover

    Remuneration Economics conducts a specialist salary survey each year among the small group of organisations that is engaged in leasing finance, motor finance, contract hire, personal finance and factoring activities. The Financial Services Salary Survey (on the Celre website) finds that the overall resignation rate among staff of such companies has risen from 7.5% in the 12 months to 1 July 2005 to 10.4% in the 12 months to 1 July 2006. The previous year's results had shown a fall in resignations from 8.3% to 7.5%.

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    Pensions staff's labour turnover

    The Remuneration Economics Salary Survey of Pension Managers, Consultants and Administrators (on the Celre website) shows that resignations among these combined groups have risen from the previous year's unusually low rate of 4.9% (for the 12 months to 1 November 2004) to 8.1% for the 12 months to 1 September 2005.

    The survey containing its findings for 2005/06 had just been published by the time we completed our research but its labour turnover data were not yet available.

    Box 1 provides further details of the sources of labour turnover statistics.

    Notes

    1. The mention or omission of a particular product or service does not imply an endorsement or criticism. Other products and services are often available.

    2. The research for this guide was completed on 5 March 2007.

    This article was written by Neil Rankin, editor, Recruitment and Retention, Employment Review.

    Our research

    The content of this IRS guide to labour turnover rates is based on a large-scale review of published information about retention and attrition rates conducted by Neil Rankin, drawing on additional research by Sheila Attwood and Sarah Welfare. It also draws on feedback from HR managers obtained by IRS staff and IRS's own survey of labour turnover rates conducted in November 2006.

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    Table 1: Financial specialists' and accountancy staff's resignation rates

    Responsibility level

    Labour turnover1

    Director of finance

    9.3%

    Senior function head

    3.1%

    Function head

    4.2%

    Department manager

    3.2%

    Section manager

    2.9%

    Section leader

    6.0%

    Senior accountant

    6.2%

    Accountant

    5.9%

    Junior accountant

    6.3%

    Clerical staff

    6.4%

    All

    5.6%

    1. Resignation rates in 12 months to 1 September 2006.

    n = 98.

    Source: Salary Survey of Financial Staff (on the Celre website), Remuneration Economics, November 2006, tel: 020 8549 8726, price £520 (non-participants), £320 (participants).

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    Box 1: Directory of labour turnover sources

    See National labour turnover findings and trends and an A-Z of labour turnover in occupations and industries for more sources of labour turnover statistics.

    Salary Survey of Actuaries and Actuarial Students, Remuneration Economics with the Actuarial Profession, tel: 020 8549 8726, price £830 (non-participants), £490 (participants).
    Scope: Actuaries.
    Technical details: Annual salary survey. Labour turnover statistics analysed by reason for leaving, level, region and qualifications, together with trends over time.
    Latest information: October 2006, relating to year to 1.9.06 (34 organisations).
    Main findings: The overall resignation rate has fallen from 10.8% in the year to 1.9.05 to 6% in the year to 1.9.06.

    Salary Survey of Financial Staff, Remuneration Economics, tel: 020 8549 8726, price £520 (non-participants), £320 (participants).
    Scope: Financial and accountancy specialists.
    Technical details: Annual salary survey. Labour turnover rates are analysed by reason for leaving, responsibility level, region, broad sector and function, plus trends over time.
    Latest information: November 2006, relating to year to 1.9.06 (98 employers).
    Main findings: Resignation rate has risen from 4.2% in the year to 1.9.05 to 5.6% in the year to 1.9.06.

    The Financial Services Salary Survey, Remuneration Economics, tel: 020 8549 8726, price £2,000 (non-participants), £900 (participants).
    Scope: Financial services.
    Technical details: Annual salary survey covering leasing finance, motor finance, contract hire, personal finance and factoring activities. Labour turnover rates are analysed by a matrix of reason for leaving and responsibility level (asset finance only).
    Latest information: October 2006, relating to year to 1.7.06 (27 employers).
    Main findings: Resignation rate has risen from 7.5% in the year to 1.7.05 to 10.4% in the year to 1.7.06.

    Salary Survey of Pensions Managers, Consultants and Administrators, Remuneration Economics, tel: 020 8549 8726, price £440 (non-participants), prices from £190 (participants).
    Scope: Pensions specialists.
    Technical details: Annual salary survey. Labour turnover rates are analysed by reason for leaving, industry, responsibility level and age, plus trends over time.
    Latest information: February 2007, relating to year to 1.9.06 (44 employers).
    Main findings: Findings from the latest survey were not yet available at the time of our research. The previous survey, published in February 2006, found that the overall resignation rate had risen from 4.9% in the year to 1.11.04 to 8.1% in the year to 1.9.05.

    Source: IRS.

    Notes:

    "Crude wastage": a turnover rate based on all types of leaver, including dismissals and redundancies. "Resignations" are employee-instigated departures and are usually voluntary.

    Labour turnover trends, rates and sources 2007/08: quick links to contents

    How employers collect and use labour turnover data
    The costs to employers of labour turnover
    Overview of the latest trends in labour turnover
    National labour turnover findings and trends

    An A to Z of labour turnover in occupations and industries:
    Call centres
    Computer staff
    Education
    Financial specialists and the finance industry
    Healthcare
    Hospitality industry
    Housing associations
    Managers and directors

    Manufacturing sector

    Personnel and HR staff
    The public sector
    Sales, marketing and retail
    Voluntary organisations