TORONTO, Feb. 28, 2024 (GLOBE NEWSWIRE) -- One-third of Canadian businesses (28%) expect increased employee turnover this year, according to a new Express Employment Professionals-Harris Poll survey.
High turnover comes with high costs, as companies estimate an average cost to replace an employee of $30,674 annually (e.g., cost to rehire, lost productivity). Moreover, 15% of Canadian companies report turnover costs them more than $100,000 per year.
The top factors that drive higher turnover include better pay/benefits offered elsewhere (37%), employees resigning (31%), increased workplace demands (25%), employees retiring (24%) and the competitive job market (24%).
More than one-fifth of companies believe increased turnover will be in part due to employees feeling overworked (22%), better perks (e.g., summer Fridays, unlimited vacation days) offered elsewhere (21%), more advancement opportunities elsewhere (19%) and lack of remote work options (19%).
Turnover Fallout
Turnover not only takes a toll on the company but also remaining employees. Indeed, nearly two-thirds of businesses (64%) say employee turnover places a heavy burden on current employees.
To counteract this turnover and perhaps give some reprieve to their remaining employees, most companies (81%) plan to hire in 2024 — an increase compared to 2023 (75%).
Typically, companies are hiring either to increase their overall employee count (36%) or to keep the same level of employees (37%).
Building Blocks for Turnover Solutions
In any business, turnover is unavoidable. Employee movement within the workforce is natural and can be attributed to various factors. From affecting productivity to engagement, excessive turnover can wreak havoc on even the most established businesses ability to stay competitive.
While best retention practices come in many shapes and sizes, they’re all linked by the same basic idea—employees are a company’s most valuable asset.
Express has identified eight building blocks for turnover solutions:
- Understanding That Turnover is a Balance: Turnover can be healthy for an organization to an extent such as underperforming team members, someone who has checked out with retirement on the horizon or an employee lacks motivation because they aren’t happy in their role.
- The Cost of Turnover: Studies show the actual cost to replace an employee is significant. Depending on a variety of factors—including skill level, education and experience—the total cost of turnover can be as high as 150% of an employee’s annual salary.
- Understand the Expectations of Turnover: Acknowledging that turnover is common in the employment cycle, organizations that delve into the complexity of expected turnover rates gain a pivotal advantage in proactive management.
- Avoid Retention Roadblocks: Positive retention habits are the best defense against negative turnover. Time wasters can impede progress and reduce the effectiveness of turnover management efforts.
- Creating a Culture that Prevents Turnover: While the upfront costs may seem significant, the long-term benefits can outweigh the expenses — prioritize maintaining the well-being and job satisfaction of your employees.
- Employee Engagement is Key: Programs that foster a positive and inclusive workplace culture, provide opportunities for professional development and recognize and reward employee contributions can improve engagement.
- Manage Employees’ Expectations of Success: It’s critical to be upfront with expectations to help mitigate turnover and ensure employees are prepared to stay.
- Support a Multi-Generational Friendly Workplace: As organizations strive to create inclusive environments that cater to the needs and preferences of individuals spanning different age groups, they will learn how to leverage the collective strengths of diverse experiences as an opportunity to improve.
“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 staying in place, now is the perfect time to create retention tactics to stabilize headcount and keep top talent.”
Survey Methodology
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 504 Canadian hiring decision-makers.
For full survey methodology, please contact Ana@MapleLeafStrategies.com.
If you would like to arrange for an interview to discuss this topic, please contact Ana Curic at (613) 858-2622 or email Ana@MapleLeafStrategies.com.
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.
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 579,000 people globally in 2022 and 10 million since its inception. For more information, visit ExpressPros.com/CA.
An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f243f4cb-c4c6-4527-b7c8-3d9e9489d46f
