Study finds high number of senior management and executives are seeking new roles over the coming months, at the cost of £34 billion for small businesses
Research released by HR tech company Employment Hero has found that UK SMEs are facing an executive mass exodus in the coming months.
When polling 1000 employees in August and September, the company found that 62% of executives and senior managers within UK businesses are intending to move jobs within the next 12 months and many have already started the process, with senior managers re-evaluating their career during the pandemic.
Companies that can’t keep hold of senior management will be faced with sizeable costs. Employment Hero has predicted that 2.5m executives and managers will need to be replaced, and at the average cost of 33% of the employee’s annual salary. This equates to £34 billion to cover recruitment and training of a new hire and reduced productivity during the hiring period.
When asked, employees at senior and executive level were 37% more likely to have reached out to a recruiter. Across all levels of seniority, those that had spoken to a recruiter in the last 6 months, 80 per cent had been proactive in making the initial contact.
Ben Thompson, CEO of Employment Hero, said: “If you don’t even consider retention, there’s no point in focusing on hiring. Therefore, it makes sense for UK SMEs to make this a business priority. The resignation of an executive is an indicator of the large employee crisis facing many small and medium-sized UK companies. In a pandemic high-stress situation, some managers came to the table with the understanding and care of their employees, but some were under pressure. It’s clear that employers can no longer ignore their concerns, as they have the time they need to actually evaluate what they deserve. “
The research also highlighted the increasingly strained relationship between CEO and senior executives as a result of the pandemic. With senior staff wanting a change in management in order to continue working for a company (24%). Senior personnel also stated they were looking for a change due to feeling overworked (30%), a lack of pay rise (23%), lack of training opportunities (34%) and a lack of management responsibility (55%).
It’s well documented that UK job postings are at an all-time high and many more senior management and executive employees that sat tight over the last 12-18 months appear to be considering their next move. Now, more than ever might be the time for SME business owners to pay special attention to those they feel pivotal and vital to their businesses.