The failure of businesses in the UK to keep competent employees is costing them £42bn a year, according to a survey by PricewaterhouseCoopers (PwC).

PwC have said that the cost of replacing a worker often equates to about a year of their salary. It added that the costs included those associated with the lost skills and productivity of the worker, plus having to find and train new recruits.

Its study also found that the annual UK resignation rate stood at 10.4% of employees, much higher than 7% in the US and 5% in both France and Germany.

"Companies often vastly underestimate the financial benefits of retaining existing employees," said Richard Phelps of PwC.

"With many businesses eager to maintain or grow staff levels as the economy starts to recover, it is crucial they consider the full costs of losing staff through resignation."