Canadian businesses are facing mounting financial pressure from employee turnover, with companies spending an average of $29,234 annually on costs related to departing workers, according to a new survey.
Nearly one in three Canadian hiring managers expect turnover at their company to increase this year, with 17% reporting annual costs of $100,000 or more, the Express Employment Professionals-Harris Poll survey found.
The financial burden hits larger organizations particularly hard, with 34% of companies employing at least 500 people reporting annual turnover costs exceeding $100,000. In contrast, only 6% of companies with 10 to 99 employees and 4% of those with two to nine employees face similar costs.
Rising workplace demands drive departures
Hiring managers cited increased workplace demands as the top reason behind expected turnover, with 37% pointing to this factor. Better pay and benefits offered elsewhere ranked second at 33%, followed by employees feeling overworked at 29%.
Other significant factors include a competitive job market (29%), better perks elsewhere (26%), and employee retirements (25%). Companies also face challenges from workers switching careers (24%), voluntary resignations (23%), and terminations (22%).
The survey also highlighted workplace culture and advancement opportunities as retention challenges, with 22% citing better company culture elsewhere and 20% pointing to more advancement opportunities at other firms.
Companies maintain hiring plans despite turnover concerns
Despite turnover worries, 83% of Canadian hiring managers say their companies still plan to hire in 2025, matching last year’s figures. Among those hiring, 33% aim to increase overall headcount while 37% want to maintain current staffing levels.
Notably, 38% of companies planning to hire cite the need to replace employees lost to turnover as a key factor in their hiring decisions.
“Employee turnover isn’t just a staffing issue, it’s a financial one,” said Express CEO Bob Funk Jr. “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.”
Survey details
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between Nov. 11-26, 2024, among 505 Canadian hiring decision-makers.
