Thirty-three percent of U.S. hiring managers anticipate employee turnover to increase this year, which will cost their company an average $36,295 annually in lost productivity and hiring expenses, according to the findings of a survey released Tuesday.
Some 20% of hiring managers reported the number climbs to $100,000 or more when higher paid professionals leave the company.
The Express Employment Professionals-Harris Poll survey found that among employers who anticipate increased turnover in 2024, 38% say the most likely reason will be for better pay or benefits elsewhere. Increased workplace demands (35%), overwork (31%), and a competitive job market (26%) were other top reasons cited in the survey.
Thirty-three percent of hiring managers expect turnover from resignations, 23% said it would be from terminations, and 23% said it would be from retirements.
Turnover not only takes a toll on the company, but also on its remaining employees. In fact, 73% of hiring managers say employee turnover places a heavy burden on existing employees.
To counteract this turnover 88% of hiring managers said their companies are making plans to hire in the next year, an increase from the 81% who had hiring plans last year.
In any business, turnover is unavoidable. While it can be healthy for an organization to weed out unmotivated or unperforming employees, excessive turnover (more than 10% of a company’s workforce) affects overall productivity and employee engagement, making it difficult for a business to stay competitive.
“High turnover in the booming jobs market of the past few years has led to a strained workforce that is stressed and burned out,” said Bill Stoller, Express Employment International CEO. “With data showing more employees are remaining in place, now is the perfect time to create retention tactics to stabilize headcount with top talent.”
Successful retention strategies create a positive and inclusive culture that prioritizes employee well-being and job satisfaction, offer competitive salaries and benefits, reward employee contributions, and leverage the diverse strengths of multi-generational workforces, he said.
