(Solution) CIPD 5HR02 turnover and retention trends and the factors that influence why people choose to leave or remain. (AC 3.1)


Turnover is the number of employees who leave the organisation expressed as a percentage of the total number of workforce (Maxwell, 2022). Turnover can be dysfunctional when high performing employees leave or functional when low performers leave the workplace.

An example of current trend in turnover is the post-pandemic turnover. Research demonstrates that turnover ‘tsunami’ is expected to occur once the organisations have recovered from pandemic (Maurer, 2021). During the pandemic, employees experienced a lot of burnout, stress and depression due to lack of sufficient measures for their health and wellbeing. Therefore, employees consider to leave to look for better workplaces that have access to good work.

Employees might choose to leave for different reasons. 35% of employees say they would leave in search for better compensation and benefits while 25% will leave for better work-life balance (Maurer, 2021). Employees need to be paid well to meet their needs and have flexible working for their wellbeing.

Employee retention is the ability for an employer to keep employees for a certain period and is expressed as a percentage of total number of employees (Maxwell, 2022). A current trend in employee retention is the focus on remote and hybrid working. As pandemic caught organisations off-guard, it has become more important to adopt flexible working options to aid retention. CIPD’s (2022) resourcing and talent planning report found that 68% of organisations are offering remote and hybrid working practices to improve work flexibility and perhaps retention.

Employees choose to stay when they have career development opportunities and greater compensation. BMG need to consider upskilling its people and encourage a culture of continuous professional development. There is also a need to focus on better pay to improve employee motivation.

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