New Survey Reveals the Soaring Financial Toll of Employee Departures

OKLAHOMA CITY -- As the midpoint of 2025 approaches, many companies are not only focused on hiring but also preparing for a potential rise in employee turnover.

According to a recent Express Employment Professionals-Harris Poll survey, nearly 2 in 5 U.S. hiring managers (39%) expect turnover at their company to increase this year — a notable jump from 33% who said the same about 2024.

While just more than half (51%) believe turnover will remain steady, the growing concern is already impacting company budgets. On average, turnover costs businesses $36,723 annually in expenses like rehiring and lost productivity. For 1 in 5 hiring managers (20%), that number climbs to $100,000 or more each year.

The financial burden of turnover is especially pronounced in larger organizations. Among those who report annual turnover costs of $100,000 or more:

34% — Companies with 500 or more employees
17% — 100 to 499 employees
14% — 50 to 99 employees
3% — 10 to 49 employees
2% — Fewer than 10 employees
Among those anticipating increased turnover, the most commonly cited reasons include:

Better pay and benefits offered elsewhere (34%)
Employees voluntarily resigning (32%)
Increased workplace demands (29%)
Employee retirements (26%)
More appealing company cultures elsewhere (24%)
Feelings of being overworked (24%)
A competitive job market (23%)
Career changes (22%)
Better perks or advancement opportunities elsewhere (22%)
Lack of flexible schedules (21%)
Lack of remote work options (19%)
Despite these challenges, hiring remains a top priority. A strong majority (88%) of hiring managers say their companies still plan to hire in 2025, which is in line with last year's figures. Among those, 45% are hiring to increase their overall headcount, while 34% aim to maintain current staffing levels.

Notably, 43% of those planning to hire say the need to replace employees lost to turnover is a key driver behind their hiring plans.

"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. Which 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 Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals from Nov. 11 to 26, 2024, among 1,001 U.S. hiring decision-makers.

For full survey methodologies, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

If you would like to arrange for an interview to discuss this topic, please contact Sheena.Hollander@ExpressPros.com, Director of Corporate Communications & PR.

About Robert (Bob) Funk, Jr.
Robert (Bob) Funk, Jr., is the Chief Executive Officer and Chairman of Express Employment International, a global staffing franchisor founded and headquartered in Oklahoma City, Oklahoma. He leads a portfolio of workforce solution brands, including the flagship Express Employment Professionals franchise, along with several affiliated brands serving specialized markets. The Express franchise brand is an industry-leading, international staffing company with franchise locations across the U.S., Canada, South Africa, Australia and New Zealand.

About Express Employment Professionals
At Express Employment Professionals, we're in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia and New Zealand, employing 427,000 people globally in 2024 and more than 11 million since its inception. For more information, visit ExpressPros.com.

SOURCE Express Services dba Express Employment Professionals