Turnover placing heavy burden on remaining workers
Oklahoma City – 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.
Information provided 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. Turnover does more than simply affect a company’s finances.
According to the poll, slightly more than 7 in 10 hiring managers agree employee turnover places a heavy burden on existing employees, specifically in companies with 100-499 employees and those with 500 or more employees. With the added complexity of the current labor shortage, companies are having to lean heavily on their current employees.
A majority of hiring managers say their company has been affected in some way by the departures, namely having to increase workloads for existing employees. As a result of the heightened turnover, around 4 in 5 plan to rehire former employees, generally either to increase their overall headcount or keep the same level of personnel.
For companies that have seen increased turnover this year, 34% of hiring managers attribute these vacancies to employees resigning, while 31% blame increase in workplace demands. Also attributed were better pay/benefits offered elsewhere and the competitive job market.
Around a quarter say the reason for the increased turnover is due in part to employees retiring, better perks elsewhere (e.g., summer Fridays, unlimited vacation days), better company culture elsewhere or employees feeling overworked.
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.”
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