By Deborah Broadbent on November 6th, 2025
At VisionFR, we’re delighted once again to sponsor the DBA in the production of the Focus 2025 report.
Having reviewed the report in detail, one standout metric is the staff churn rate — holding steady at 15% over the past two years. For a typical SME agency of around 40 employees, that equates to approximately six people leaving and a similar number of new hires joining each year.
Staff turnover carries a significant financial impact that extends well beyond recruitment costs. In addition to direct expenses — such as hiring, onboarding, and training — there are equally important indirect costs to consider: lost productivity, disruption to client delivery, reduced morale, and delayed project timelines.
Research from Oxford Economics and Unum indicates that the total cost of staff turnover can range between £12,000 and £30,000 per head, depending on seniority, with direct costs alone at between £6,000 to £19,000. Taking a blended figure of £21,000 per person, a 15% churn rate represents a considerable hit to profitability each year. Reducing this closer to 5% would deliver a meaningful uplift to the bottom line.
To achieve this, it’s essential to prioritise both cultural and technical fit during recruitment, ensure new hires are onboarded effectively, and the hiring manager needs to present roles accurately and compellingly during the interview process. Alongside this, having a strong HR function and senior leadership team focused on clear career progression, ongoing training, competitive benefits, and a healthy company culture will help drive retention.
Finally, a robust Finance team can support this effort by accurately tracking both the direct and indirect costs associated with the staff turnover — enabling informed decision-making and protecting profitability.
For all your Finance, HR, and Operational hires, VisionFR is uniquely positioned to support you. Founded by former Finance Directors from within the sector, we understand your business needs first-hand. We’re always happy to have an informal conversation and offer consultative advice on the best way forward — helping you attract the right talent while minimising the cost of hire.