Employee turnover costs $57,150 annually

Although employee departures continue to plague the workforce, according to the results of an Express Employment Professionals survey, 48 per cent of U.S. hiring managers say their company is experiencing increased turnover, up from 44 per cent in late 2021.

Employee turnover costs businesses an average of $57,150 per year (cost to rehire, lost productivity). Almost a quarter (23 per cent) 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 per cent) hiring managers, particularly in companies with 100-499 employees (76 per cent) and 500 or more employees (78 per cent). 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 per cent), increased workplace demands (31 per cent), better pay/benefits offered elsewhere (31 per cent), and a competitive job market (28 per cent). Employees retiring (26 per cent), better perks elsewhere (e.g., summer Fridays, unlimited vacation days) (26 per cent), better company culture elsewhere (25 per cent) and/or employees feeling overworked (24 per cent) are cited as reasons for increased turnover.

The sources for this piece include an article in CIODive.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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