Although employee departures continue to plague the workforce, according to the results of an Express Employment Professionals survey, 48% of U.S. hiring managers say their company is experiencing increased turnover, up from 44% in late 2021.
Employee turnover costs businesses an average of $57,150 per year (cost to rehire, lost productivity). Almost a quarter (23%) of hiring managers estimate that it costs their company $100,000 or more per year.
According to Express Employment, employee turnover costs companies an average of $57,150 per year, but nearly a quarter of hiring managers said it costs their company $100,000 or more per year.
Turnover has an impact on more than just a company’s finances; it can also have an impact on its other employees.
A Employee turnover is a significant burden on existing employees, according to slightly more than 7 in 10 (71%) hiring managers, particularly in companies with 100-499 employees (76%) and 500 or more employees (78%). Companies are having to rely heavily on their current employees due to the added complexity of the current labor shortage.
Many hiring managers attribute increased turnover this year to employees resigning (34%), increased workplace demands (31%), better pay/benefits offered elsewhere (31%), and a competitive job market (28%). Employees retiring (26%), better perks elsewhere (e.g., summer Fridays, unlimited vacation days) (26%), better company culture elsewhere (25%) and/or employees feeling overworked (24%) are cited as reasons for increased turnover.
The sources for this piece include an article in CIODive.