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
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KEY POINTS
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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.
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%.
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
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.
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%.
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.
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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 |
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Responsibility level |
Labour turnover1 |
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Director of finance |
9.3% |
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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% |
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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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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). Salary Survey of Financial Staff,
Remuneration Economics, tel: 020 8549 8726, price £520 (non-participants),
£320 (participants). The Financial
Services Salary Survey, Remuneration
Economics, tel: 020 8549 8726, price £2,000 (non-participants), £900
(participants). Salary Survey of Pensions Managers,
Consultants and Administrators, Remuneration Economics, tel: 020
8549 8726, price £440 (non-participants), prices from £190 (participants). 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 An A to Z of labour turnover in occupations
and industries: |
