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.”