Eight Building Blocks To Mitigate Turnover in 2024

Thirty-three percent of U.S. hiring managers anticipate employee turnover at their company to increase in the coming year, costing an average of $36,295 (e.g., cost to rehire, lost productivity, etc.). And more than 20% of hiring managers say that number can climb to $100,000 or more.

This is according to a recent Express Employment Professionals–Harris Poll survey.

For those who anticipate increased turnover in 2024, many point to the cause as better pay/benefits offered elsewhere (38%), increased workplace demands (35%), employees resigning (33%), employee feelings of being overworked (31%), and the competitive job market (26%).

About 1 in 4 believe it will be due in part to better perks being offered elsewhere (e.g., summer Fridays, unlimited vacation days at 23%), employees being terminated (23%), employees retiring (23%), and better company culture elsewhere (21%).

Turnover fallout

Turnover takes a toll not only on the company, but also on the remaining employees. Nearly three-quarters of hiring managers (73%) say employee turnover places a heavy burden on existing employees.

In an effort to counteract this turnover and perhaps give some reprieve to their employees, the overwhelming majority of companies (88%) are making plans to hire in the coming year — a significant increase since last year (81%).

Typically, companies are hiring either to increase their overall employee count (45%) or to keep the same level of employees (36%).

Building blocks for turnover solutions

In any business, turnover is unavoidable. Employee movement within the workforce is natural and can be attributed to various factors. Yet, from affecting productivity to engagement, excessive turnover can wreak havoc on even the most established business’ ability to stay competitive.

While best retention practices come in many shapes and sizes, they’re all linked by the same basic idea that employees are a company’s most valuable asset.

Express has identified eight building blocks for turnover solutions with full details available at ExpressPros.com/TurnoverSolutions:

1. Understanding that turnover is a balance. Turnover can be healthy for an organization to an extent, such as with underperforming team members, someone who has checked out with retirement on the horizon, or an employee lacking motivation because they aren’t happy in their role.

2. The cost of turnover. Studies show the actual cost to replace an employee is significant. Depending on a variety of factors — including skill level, education, and experience — the total cost of turnover can be as high as 150% of an employee’s annual salary.

3. Understand the expectations of turnover. Acknowledging that turnover is common in the employment cycle, organizations that delve into the complexity of expected turnover rates gain a pivotal advantage in proactive management.

4. Avoid retention roadblocks. Positive retention habits are the best defense against negative turnover. Time wasters can impede progress and reduce the effectiveness of turnover management efforts.

5. Creating a culture that prevents turnover. While the up-front costs may seem significant, the long-term benefits can outweigh the expenses. Prioritize maintaining the well-being and job satisfaction of your employees.

6. Employee engagement is key. Programs that foster a positive and inclusive workplace culture, provide opportunities for professional development, and recognize and reward employee contributions can improve engagement.

7. Manage employees’ expectations of success. It’s critical to be up front with expectations to help mitigate turnover and ensure employees are prepared to stay.

8. Support a multi-generational friendly workplace. 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. With data showing more employees are remaining in place, now is the perfect time to create retention tactics to stabilize headcount with top talent.

Methodology

The Job Insights survey was conducted online within the U.S. by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 1,007 U.S. hiring decision-makers.

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

William H. “Bill” Stoller is chairman and CEO of Express Employment International. Founded in Oklahoma City, the Express franchise brand is an industry-leading, international staffing company with franchise locations in the U.S., Canada, South Africa, Australia, and New Zealand. Its international network of franchises employed 579,000 people globally in 2022 and more than 10 million since its inception. For more information, visit ExpressPros.com.