The $100,000/Yr Drain: How Worker Turnover Is Costing Firms Massive in 2025
Profession Climbers / sixteenth June 2025
Because the midpoint of 2025 approaches, many firms should not solely centered on hiring but additionally making ready for a possible rise in worker turnover.
In response to a current Categorical Employment Professionals-Harris Ballot survey, practically 2 in 5 U.S. hiring managers (39%) count on turnover at their firm to extend this yr—a notable leap from 33% who stated the identical about 2024.
Whereas simply greater than half (51%) consider turnover will stay regular, the rising concern is already impacting firm budgets. On common, turnover prices companies $36,723 yearly in bills like rehiring and misplaced productiveness. For 1 in 5 hiring managers (20%), that quantity climbs to $100,000 or extra every year.
The monetary burden of turnover is particularly pronounced in bigger organizations. Amongst those that report annual turnover prices of $100,000 or extra:
- 34% — Firms with 500 or extra staff
- 17% — 100 to 499 staff
- 14% — 50 to 99 staff
- 3% — 10 to 49 staff
- 2% — Fewer than 10 staff
Amongst these anticipating elevated turnover, probably the most generally cited causes embody:
- Higher pay and advantages supplied elsewhere (34%)
- Staff voluntarily resigning (32%)
- Elevated office calls for (29%)
- Worker retirements (26%)
- Extra interesting firm cultures elsewhere (24%)
- Emotions of being overworked (24%)
- A aggressive job market (23%)
- Profession adjustments (22%)
- Higher perks or development alternatives elsewhere (22%)
- Lack of versatile schedules (21%)
- Lack of distant work choices (19%)
Regardless of these challenges, hiring stays a high precedence. A powerful majority (88%) of hiring managers say their firms nonetheless plan to rent in 2025, which is according to final yr’s figures. Amongst these, 45% are hiring to extend their total headcount, whereas 34% intention to keep up present staffing ranges.
Notably, 43% of these planning to rent say the necessity to change staff misplaced to turnover is a key driver behind their hiring plans.
“Worker turnover isn’t only a staffing situation, it’s a monetary one,” stated Categorical CEO Bob Funk, Jr. “Firms that need to keep aggressive have to be intentional about retention. Which implies constructing a office the place individuals see long-term worth—not simply in compensation, however in management, readability of path and the chance to contribute meaningfully.”
Survey Methodology
The Job Insights survey was carried out on-line inside the USA by The Harris Ballot on behalf of Categorical Employment Professionals from Nov. 11 to 26, 2024, amongst 1,001 U.S. hiring decision-makers.
