Employee Turnover Costly and a Growing Problem for Canadian Businesses

London, Ontario - November 30, 2022 London, ON - December 1-Employee turnover is becoming an increasingly costly problem that continues to plague Canadian businesses still trying to recover and readjust from the COVID-19 pandemic, according to a survey from The Harris Poll commissioned by Express Employment Professionals. 

More than one-third of Canadian companies (35%) say employee turnover has increased compared to last year, a significant rise from the nearly a quarter (24%) who said the same thing in 2021. 

According to the survey, employee turnover costs companies an average of over $41,000 each year (including the cost to rehire, lost productivity and more). Those costs are even higher for some employers, with more than 1 in 10 hiring managers (16%) reporting $100,000 or more per year in turnover expenses. 

For companies with increased turnover this year, the main causes identified include better pay and/or benefits offered elsewhere (36%), employees resigning (35%), employees feeling overworked (33%), retirements (30%), increased workplace demands (29%) and better perks elsewhere such as summer Fridays and unlimited vacation days (28%).

Turnover does more than impact a company's finances; it can also impact employees who remain with a company. Two-thirds of companies agree that employee turnover places a heavy burden on existing employees (64%). This is especially the case with large employers with 100 or more employees (75%) compared to small businesses with fewer than 10 employees (50%). With the added complexity of the current labour shortage, companies are having to lean heavily on their current employees. 

"I think it's safe to say that every company or organization has been negatively impacted by employee turnover this past year," said Michael Elliott, multi-franchise owner of the London and Kitchener/Waterloo Express franchise offices. "Although there isn't a magic pill to address turnover in general, employers need to ensure salary and benefits remain competitive, and with the same sense of urgency, employers need to address workplace expectations that may be contributing to the heightened turnover. These include but are not limited to long hours, additional workload on loyal employees, and a lack of recognition for going above and beyond."

It's no surprise workers are willing to jump for better opportunities, Express Employment International CEO Bill Stoller said. 

"A well-rounded workforce is one that stays," he said. "The goal of any employer should be to create such a healthy company culture that top talent will turn down other job offers. It may just be the key to stopping future turnover." 

Survey Methodology
The survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between May 3-23, 2022, among 504 Canadian hiring decision-makers (defined as adults ages 18+ in Canada who are employed full-time or self-employed, work at companies with more than one employee and have full/significant involvement in hiring decisions at their company). Data were weighted where necessary by company size to bring them into line with their actual proportions in the population.
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About Express Employment Professionals 
At Express Employment Professionals, we're in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia and New Zealand, employing 586,000 people globally in 2021 and 10 million since its inception. For more information, visit ExpressPros.com/CA. 
 
The London Express office is located at 300 Dundas St and serves the London and surrounding communities. Local businesses and applicants are encouraged to stop by, visit expresspros.com/london or call (519) 672-7620. 

About Bill Stoller 
William H. "Bill" Stoller is chairman and chief executive officer of Express Employment  
International. Founded in Oklahoma City, Oklahoma, the international staffing franchisor 
supports the Express Employment Professionals franchise and related brands. The Express franchise brand is an industry-leading, international staffing company with franchise locations in the U.S., Canada, South Africa, Australia and New Zealand.