Employee Turnover Continues to Increase with an Average Annual Cost of $57,150

Irvine, CA - December 13, 2022

Employee Turnover Continues to Increase with an Average Annual Cost of $57,150 

Turnover Placing Heavy Burden on Remaining Workers - Latest Results from The Harris Poll

 

Employee departures continue to plague the workforce as 48% of U.S. hiring managers say their company is experiencing increased turnover, up from 44% in late 2021.

 

This is according to a survey from The Harris Poll commissioned by Express Employment Professionals.

 

Each year, employee turnover costs companies an average of $57,150 (e.g., cost to rehire, lost productivity) overall. Nearly a quarter of hiring managers (23%) say it costs their company $100,000 or more per year.

 

Impact on Remaining Staff 

 Turnover does more than simply affect a company’s finances; it can also impact its other employees. Slightly more than 7 in 10 (71%) hiring managers agree employee turnover places a heavy burden on existing employees—specifically in companies with 100-499 employees (76%) and those with 500 or more employees (78%). With the added complexity of the current labor shortage, companies are having to lean heavily on their current employees.  

 A majority of hiring managers (78%) say their company has been affected in some way by the departures, namely having to increase workloads for existing employees (38%). As a result of the heightened turnover, around 4 in 5 (82%) plan to rehire former employees, generally either to increase their overall headcount (43%) or keep the same level of personnel (32%).  

 

Turnover Causes 

 For companies that have seen increased turnover this year, many hiring managers attribute these vacancies to employees resigning (34%), increase in workplace demands (31%), better pay/benefits offered elsewhere (31%) and the competitive job market (28%). Around a quarter say the reason for the increased turnover is due in part to 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%).   

 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 the United States by The Harris Poll on behalf of Express Employment Professionals between May 3 and May 23, 2022, among 1,003 U.S. hiring decision-makers (defined as adults ages 18+ in the U.S. 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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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, and find more employment insights at ExpressPros.com/AmericaEmployed.

 

 

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The Irvine Express office is located at 13700 Alton Parkway, Suite 156 Irvine, CA 92618 and serves the Irvine, Tustin, Lake Forest, Foothill Ranch, Mission Viejo and Rancho Santa Margarita marketplace. Local businesses and applicants are encouraged to get in touch at their convenience. Call 949.583.7400 or visit www.expresspros.com/irvineca/.