Companies in the UK continue to struggle with employee retention, with 26%of the country’s workforce — or about 7.3 million people — looking to switch jobs this year, according to new research by HR software provider Ciphr. 

The survey of more than 1,200 UK employees found that 15% started a new job in the past six months, while a further 26% have been actively job hunting due to continuing cost-of-living pressures.

More than half (53%) of Generation Z employees, those aged 18 to 24, and 34% of younger Millennials, aged 25 to 34, said they were looking for better-paying roles. This contrasts with 28% of workers aged between 35 and 44, 22% of 45- to 55-year-old employees and 9% of workers over age 55.

“It’s still a highly competitive job market and I’m sure most employers are very aware that retention continues to be a challenge, especially when so many people are continuing to feel financial pressures,” Claire Williams, chief people and operations officer at Ciphr, said in a statement on the company’s website.

“Inflation may have come down from the double digits of recent years, but the cost of living and the cost of doing business remains high,” Williams added.

The survey noted that 53% of respondents who are, or have been, looking for a different job in 2024 have also taken on more hours or extra shifts to supplement their income and 40% have taken on an additional job or side hustle.

Londoners are more likely to be in the market for a new job than UK workers from other parts of the country, with 37% of respondents saying they are actively job hunting.

The survey found that nearly a third of employees in the South-West of England, Northern Ireland and Scotland have also been seeking a change in employment.

Certain sectors are also facing more of an exodus than others, with 37% of people working in sales likely to switch jobs, followed by 35% of respondents in business and management consulting, 35% in hospitality and events, and 32% in IT. In comparison, only 15% of solicitors, lawyers and other employees in the legal sector have made steps to change jobs.

“HR’s role is to understand what is driving employee turnover — to utilise people data to look at the trends, compare that with the market and be realistic about what constitutes a healthy level of turnover,” Williams said.

“They should be creating strategies to improve retention where needed — listening to employee feedback to shape the broader EVP [employee value proposition] and working with the C-suite and management to deliver on that.”