Employee turnover rates
Ever felt like some positions are impossible to fill? Have you found yourself stuck in a constant cycle of hiring and onboarding for the same roles? You’re not alone. A high employee turnover rate is more than just a number for improvement. In some industries, it’s an unfortunate constant. It drains company resources, limits potential growth, and can sap the morale of remaining team members.
What is employee turnover?
Employee turnover is the rate at which employees leave an organization, voluntarily or involuntarily. These departures necessitate new hires or staff reassignments to maintain operations. While turnover can be beneficial, such as when underperforming employees depart, making room for stronger candidates, losing high-performing team members can disrupt workflows and lower team morale.
How much does employee turnover cost employers?
Employee turnover presents a costly challenge for businesses. According to Gallup, replacing a frontline employee can cost approximately 40% of their annual salary. This expense increases for specialized roles, with technical positions costing up to 80% of the employee’s salary to replace. For leadership and managerial roles, replacement costs can reach as high as 200%. Beyond the financial impact, turnover also consumes significant time and resources to recruit, onboard, and train new hires. It can also disrupt team dynamics and lower productivity. For businesses aiming to maintain stability and manage costs, prioritizing employee retention is crucial.
Employee turnover trends
Canadian workplace hiring and retention trends are changing. According to Randstad’s 2024 Workmonitor report:
- 47% would leave a job hindering their personal life.
- 41% would consider resigning if forced to spend more time in the office.
- 32% would leave a job if no career advancement opportunities were available.
- 23% would leave if no upskilling opportunities were available.
Overlooking these challenges puts you at risk of losing your top employees. However, you can take steps to minimize employee turnover.
Measuring employee turnover
Monitoring turnover provides insight into your organization’s health. High turnover necessitates increased hiring, leading to significant costs. These include recruitment fees, training time, and lost productivity as new hires onboard. These expenses accumulate rapidly with above-average turnover.
Most organizations track turnover figures quarterly or annually. While overall company data is useful, examining patterns across teams and locations offers valuable insights. For example, you might discover one team has excellent retention, while another experiences high voluntary turnover. By consistently measuring and tracking employee turnover rates, you’ll learn to:
- Spot early warning signs of potential issues;
- Plan your recruitment strategy effectively;
- Compare results across your organization;
- Make informed decisions on retention strategies; and
- Learn how to calculate employee turnover rate.
Top industries and roles with high turnover rates
Certain industries and roles experience higher turnover rates due to the nature of the work, market demand, and employee expectations. For example, according to the 2025 Canada Mercer Turnover Survey, the wholesale and retail sectors continued to face elevated turnover rates due to seasonal employment patterns, long hours, and entry-level roles with limited career advancement opportunities. Similarly, roles in call centres or customer service positions see high attrition, as they can be high-pressure environments with repetitive tasks. Healthcare and technology sectors also report significant turnover, driven by burnout, heavy workloads, or competitive job markets offering better opportunities. Understanding these trends is essential for businesses, as it enables the development of targeted strategies to boost employee engagement, reduce churn, and maintain a stable workforce even in industries with traditionally high turnover rates.
Top causes of employee turnover
Conflicts with management
When employees perceive managers as overbearing, the work environment becomes toxic, driving some to look for jobs elsewhere. Business leaders who micromanage and those who leave employees with little guidance also increase the chances employees will leave. Unsurprisingly, most people who find their direct supervisors difficult to work with often dread their job and eventually disengage from their work.
Lack of flexible work options
Randstad’s Workmonitor report revealed that nearly half (47%) of Canadians consider working from home non-negotiable. Similarly, 52% feel their employer lacks enough flexibility regarding remote work. To attract top talent, organizations that do not offer flexible work options should consider adopting a hybrid model or providing whatever flexible work arrangements they can.
Employee burnout
When employees hold high-pressure roles with minimal downtime, they often experience burnout. Overworked staff become overwhelmed. Without options to adjust their schedules or access to mental health benefits, they frequently seek new opportunities. A Disconnecting from Work Policy is legislatively required in some cases, but even where it isn’t, having one promotes core values like work–life balance and demonstrates that your organization values workers’ personal time right from the start of their employment.
Poor fit for the workplace culture
Sometimes the issue isn’t the boss but the culture. Without a safe, inclusive, and supportive work environment, employees eventually feel undervalued, disengaged, and will seek new opportunities elsewhere.
Employee disengagement
Not every job is a dream job. In fact, most employees are disconnected from their work. According to Gallup, 62% of employees globally are not engaged, and 15% are actively disengaged. To overcome this, it’s essential for employers to engage and motivate teams, offer varied tasks, plan engagement programs, recognize employees, and provide professional development to fuel growth.
Reducing employee turnover: Strategies from our experts
Understanding why employees leave is the first step to retaining your talent. These insights can help you develop a plan to tackle each issue. Knowing your organization’s internal team structures, current training and development programs, and employee engagement rates enables you to make effective improvements. Here are some proven strategies from our experts that can help improve your employee retention.
Offer engaging training opportunities
Effective training lowers employee turnover. It provides your staff with new skills and opportunities to advance within your company and can help prevent disengagement. Take time to explain your organization’s training and development offerings during onboarding, and continue to promote them throughout their time at the company. Leadership training is equally important and shouldn’t be neglected. It develops fair, supportive managers who focus on their teams’ strengths. Employees appreciate leaders who offer helpful feedback and recognize their potential.
Provide flexible scheduling
Many employees appreciate flexible hours and remote work, which can support personal needs like childcare or help reduce commute times. Although some employers prefer staff to be in the office, offering flexible work options can help attract and keep skilled workers. Understanding and adjusting to employee preferences in work arrangements can give your organization a valuable edge in recruitment and retention.
Implement a recognition program
Fair pay, strong benefits, and recognition programs help retain employees by showing that their contributions are valued. Consider implementing a rewards program or traditional awards like “employee of the month,” as well as offering bonuses or project-based incentives. To enhance these programs, recognize achievements promptly and provide constructive feedback.
Address problems early to prevent escalation
Unaddressed employee frustrations can cause disengagement. Issues like unfair pay, toxic work environments, or employee burnout all add to disengagement and low morale. If staff don’t feel safe speaking up, resentment builds, leading them to look for new jobs. Ignoring frustration harms employer–employee relationships. Even in open workplace cultures, some employees might not speak up unless asked. So don’t wait. Use employee surveys and check-ins to gauge satisfaction and find areas for improvement. Acting on this feedback builds trust and boosts retention.
Support teams after an employee leaves
How you handle voluntary departures significantly affects team morale. Regardless of your feelings about the departing employee, set a good example and foster a healthy work environment. Avoiding communication or downplaying the departure prevents the team from processing the change. Instead, use the news to boost morale. Announce the departure, acknowledge the team’s feelings, and highlight each person’s contributions. Celebrate the departing employee’s career in a meeting or farewell, allowing the team to share positive memories and acknowledge contributions. This shared experience helps remaining staff bond and support each other, strengthening team resilience.
Often, losing an employee temporarily increases the workload for the remaining staff. Before the employee leaves, meet with them to complete their offboarding, including an exit interview as appropriate. When possible, the employee should finish their projects or work with a colleague to plan the handover. A smooth transition eases the burden, preventing burnout among the remaining workers.
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