Estimates say turnover costs more than $57K annually — and is still rising

Listen to the article 2 min Dive Brief: Forty-eight percent of U.S. hiring managers surveyed […]

Dive Brief:
  • Forty-eight percent of U.S. hiring managers surveyed said their company is seeing increased turnover, compared to 44% who said the same at the end of 2021, according to the Nov. 30 results of an Express Employment Professionals survey.
  • Employee turnover costs companies $57,150 on average, according to Express Employment, but close to a quarter of hiring managers said it costs their company $100,000 or more per year.
  • Turnover also exacts another cost: stress on remaining employees. Seventy-one percent of hiring managers surveyed said employee turnover pressures remaining employees.

Dive Insight:

Turnover tends to be contagious, other reports have shown, which may only amplify pressure on employees left behind.

“Turnover typically is very difficult for the remaining staff, compounding the need for additional shifts and excessive overtime,” Greg Sulentic, Express franchise owner in Nebraska, said in a statement with the findings. “The result is even higher levels of turnover leading to faster training cycles and higher entry-level wages.”

As for what is prompting turnover, a still-competitive job market could be to blame, Express said; its survey indicated close to a third of workers left to find better pay and benefits. Other reports have corroborated that finding, while also noting that lack of advancement opportunities at an organization can exacerbate the issue. Poor flexible work designs may also be driving workers out, especially if those policies aren’t applied equitably across an organization, a Unit4 survey showed.

To stem the tide, experts have recommended employers use stay interviews with employees who remain to see what they need and why they stay at the company. Employees who feel heard are more likely to stick around, various reports have said.

 


The original article can be found at: HR Dive