Employee turnover in Shannon and surrounding region at its lowest in five years

Shannon Chamber HR is a dedicated HR and Employment Law Support Service for members of Shannon Chamber provided in partnership with Adare Human Resource Management, experts in Employment Law, Industrial Relations, Human Resources and Health & Safety at preferential rates.

The latest HR Barometer Report has just been published by Adare Human Resource Management and highlights some of the ongoing impacts of Covid-19 on the Irish employment landscape.

Employee Turnover

In 2020, the rate of employee turnover decreased dramatically in 2020 with a nationwide average of 8.3%, down from 17% in 2019 – the lowest in five years[1]. However, the employee turnover for Organisations in Munster is slightly higher at 9.8%.

“Career progression” is the most cited reason for employees leaving their roles in Munster with over half (53%) stating it as the reason people moved on from their roles. This is nearly double the number of people moving for the same reason in Dublin at 27%.

In Munster, changing career for “higher salary” was considerably lower at just 5% compared with Dublin at 14%.

One surprising finding from the research identified that nearly four in ten (38%) Organisations in Munster are doing nothing to help improve employee retention compared to a national average of 28%. The HR Barometer found that 18% of Organisations in Dublin have increased salaries to keep staff compared with just 5% in Munster.  And, again Organisations in the capital were far more likely to introduce “flexible working arrangements” compared with Munster; 45% (Dublin) vs 28% (Munster).

When asked about the expected employee turnover for this year, the national average is 7.5%. However, the expected turnover in Munster is slightly higher at 8.5%; mirroring what was experienced in 2020 with slightly higher turnover in the region.

Cost of replacing employees

As well as lower turnover numbers, our research has also highlighted that the cost of replacing employees is down on previous years with an average cost of €3,240. In Munster, this figure is lower again with an average cost of €2,995 to replace an employee and, as would be expected, the cost in Dublin is considerably higher at €4,189.

Flexible & Remote Working here to stay

Six in ten (63%) of Organisations nationally state that they have employees working remotely, with one in three (28%) having at least half of their workforce working remotely. While this is down slightly on our findings from last year with 90% of Organisations with staff working remotely, it is a signal that many employers are requesting staff to come back to their workplaces.

However, the research found that over four in ten (43%) of Organisations in Munster do not have any staff working remotely.  Yet 73% of Organisations in the region have flexible working arrangements in place – most likely referring to most flexible working hours rather than remote working.


Salary increases 2021

The findings from the current HR Barometer indicate a return of optimism and confidence in terms of salaries. Four in ten (41%) of Organisations stated that they had or intended to increase salaries this year. When asked the same question in August 2020, just half that number (22%) said yes.

The average salary increase for 2021 as per the report is 3%, a potential incentive to attract and retain employees. This is marginally higher for Organisations in Munster at 3.3%.

“Company affordability” (36%) and “Company Profitability” (32%) are the two main factors on which salary increases are contingent. Nearly a quarter (23%) are linked to External Pay Scales. And, just 15% of salary increases are based on performance.


HR Priorities 2021 for Organisations in Shannon and surrounding region


The top 5 HR Priorities for Organisations in Munster are:

  1. Addressing Covid-19 challenges
  2. Employee Health & Wellbeing
  3. Performance Management
  4. Employee Engagement
  5. Retention


The full HR Barometer Report is available on Linea from Adare Human Resource Management.


Why Shannon Chamber HR?

  • Access to solutions-focused advice and support on HR and Employment Law queries for your Organisation provided by the experienced expert-led team at Adare Human Resource Management, giving you peace of mind that you can effectively manage any employment or HR issues that may arise. For information on the full range of services and supports provided, click here.

For further information on the HR and Employment Law support services provided, to arrange a meeting or to receive a quote, contact the team at Shannon Chamber – admin@shannonchamber.ie / 061 360 611



[1] Average Employee Turnover, HR Barometer: 2020 – 8.3%, 2019 – 17%, 2018 – 14%, 2017 – 10%, 2016 – 11%