Study: One-third of U.S. companies bracing for higher employee turnover

Thirty-three percent of U.S. hiring managers anticipate employee turnover at their company to increase in the next year, costing an average of $36,295 per employee annually, according to a survey by Express Employment Professionals and the Harris Poll. The cost per employee is based on the cost to rehire and lost productivity.

The survey found that more than 20 percent of hiring managers say the cost-per-employee number climbs to $100,000 or higher.

For those who anticipate increased turnover in 2024, many point to better pay/benefits offered elsewhere (38 percent), increased workplace demands (35 percent), employees resigning (33 percent), employee feelings of being overworked (31 percent) and the competitive job market (26 percent) as the main causes of turnover.

Around a quarter of those surveyed believe it will be due in part to better perks being offered elsewhere (e.g., summer Fridays, unlimited vacation days) (23 percent), employees being terminated (23 percent), employees retiring (23 percent) and better company culture elsewhere (21 percent).

Turnover not only takes a toll on the company, but also the remaining employees, according to the poll. Nearly three-quarters of hiring managers (73 percent) say employee turnover places a heavy burden on existing employees. In an effort to counteract this turnover and perhaps give some reprieve to their employees, the overwhelming majority of companies (88 percent) are making plans to hire next year — a significant increase since last year (81 percent). Typically, companies are hiring either to increase their overall employee count (45 percent) or to keep the same level of employees (36 percent).

“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.”