Canadian employers expect increased turnover in 2024: report

How much does employee turnover cost companies?

Employee turnover is costly for employers, according to the Express survey – conducted by The Harris Poll – of over 500 hiring decision-makers, conducted between Oct. 31 and Nov. 10, 2023.

Replacing a worker costs employers $30,674 annually on average, covering the cost to rehire and lost productivity, according to the report.

For some Canadian employers (15%), turnover costs them more than $100,000 per year, they say.

And that’s not the only negative impact of having workers depart, according to the report. Overall, 64% of hiring decision-makers say employee turnover places a heavy burden on current employees. 

In an effort to counter the effect of employee turnover, 81% of employers plan to hire in 2024, up from 75% in 2023.

This year, companies are hiring either to increase their overall employee count (36%) or to keep the same level of employees (37%).

PepsiCo, Canada’s Wonderland and Playland recently announced their hiring campaigns for this year.

How to reduce employee turnover?

In any business, turnover is unavoidable, notes Express.

“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,” it says

“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 shares the following insights to help employers deal with employee turnover:

1. 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.
2. Positive retention habits are the best defense against negative turnover.
3. Prioritize maintaining the well-being and job satisfaction of your employees.
4. Programs that foster a positive and inclusive workplace culture, provide opportunities for professional development and recognize and reward employee contributions can improve engagement.
5. It’s critical to be upfront with expectations to help mitigate turnover and ensure employees are prepared to stay.
6. 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,” says 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.”

One in three employees are currently actively searching for a new job, Express previously reported. These workers have been at their current company for eight years on average.

Oliver Howson, managing director at enable recruitment, via Linked, also shares the following employee retention tips:

1. Have regular salary reviews.
2. Start leadership training.
3. Consider your benefits package.
4. Allow flexible working.
5. Prioritize workers’ mental health.
6. Provide regular training opportunities.
7. Conduct regular catch ups.
8. Encourage time off.
9. Be open to feedback.
10. Have a performance management strategy.