Survey shows average annual cost of employee turnover
Canadian employers face considerable financial pressure from employee turnover, according to a new survey.
Nearly 30% of hiring managers across Canada anticipate that staff turnover will increase before the year’s end.
And the average annual cost of turnover now stands at $29,234 per business, factoring in recruitment, onboarding, and lost productivity, according to the from Express Employment Professionals.
For some firms, particularly larger enterprises, the financial hit is significantly higher: 17% of hiring managers reported turnover-related costs of $100,000 or more annually.
“Employee turnover isn’t just a staffing issue, it’s a financial one,” said Bob Funk, Jr., CEO of Express Employment Professionals. “Companies that want to stay competitive must be intentional about retention. That means building a workplace where people see long-term value — not just in compensation, but in leadership, clarity of direction and the opportunity to contribute meaningfully.”
The data shows turnover costs scale steeply with company size. Among businesses incurring $100,000 or more in annual turnover costs, 34% have at least 500 employees while 6% employ between 10 and 99 people and 4% have fewer than 10 staff.
Canadian hiring managers identified a range of reasons behind anticipated turnover increases. The top three drivers were growing workplace demands (37%), more competitive pay and benefits elsewhere (33%), and staff feeling overworked (29%).
“Retention isn’t a box-checking exercise,” Funk added. “It’s about cultivating a workplace culture where employees feel they can build a future — not just for their careers, but for the impact they want to have.”
Other contributing factors included:
Organisations delaying pay rises are reporting higher turnover and disengagement in their workforce, according to a separate survey by Robert Walters.
Despite the churn, most organizations remain committed to hiring. A strong 83% of hiring managers say their organizations plan to recruit in 2025, consistent with last year’s trends.
Of those, 33% aim to grow their overall workforce and 37% are looking to maintain existing staffing levels, finds the survey.
Importantly, 38% of hiring managers say that replacing departing employees is one of the key reasons behind their current hiring plans.
The survey was from November 11 to 26, 2024 with responses from 505 Canadian hiring decision-makers across industries.
