Employee turnover is taking a significant financial toll on Canadian companies, with nearly one in five (17 per cent) hiring managers saying it costs their organization more than $100,000 annually, according to a new survey by the Harris Poll on behalf of Express Services Inc.
The survey, which polled more than 500 employers, found the average cost of turnover is slightly more than $29,000 per year, which includes expenses such as rehiring and lost productivity.
The financial burden is especially pronounced in larger organizations. Among those who reported turnover costs above $100,000 annually, a third (34 per cent) had at least 500 employees. Six per cent were mid-sized companies with 10 to 99 employees, while four per cent had fewer than 10.
Read: 28% of employers expecting increased employee turnover in 2024: survey
Close to one in three (28 per cent) hiring managers said they expect turnover to increase at their company this year. The most commonly cited reasons included increased workplace demands (37 per cent), more competitive pay and benefits elsewhere (33 per cent), feeling overworked (29 per cent) and a competitive job market (29 per cent).
Other contributing factors included better perks elsewhere (26 per cent), employee retirements (25 per cent), career changes (24 per cent), voluntary resignations (23 per cent), terminations (22 per cent), stronger workplace culture elsewhere (22 per cent), limited advancement opportunities (20 per cent), no remote work options (19 per cent) and no flexible schedules (19 per cent).
Despite these pressures, hiring remains a top priority. More than four in five (83 per cent) hiring managers said their companies still plan to recruit in 2025. Of those, a third (33 per cent) said they’re hiring to increase headcount, 37 per cent plan to maintain current staffing levels and 38 per cent are hiring to replace employees lost to turnover.
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