Almost 1 in 3 hiring managers across the country (28%) expect employee turnover to increase this year, and the cost of that turnover is rising, according to a new Express Employment Professionals-Harris Poll survey.
The average cost of turnover has risen to $30,680, up from $29,234 last year, signaling mounting pressures on companies already navigating a competitive labour landscape.
Larger organizations are expressing the most significant concern: 37% of companies with 100 or more employees expect turnover to rise, compared with 22% of small businesses with 10 or fewer employees.
Drivers Behind the Expected Turnover
Among employers anticipating higher turnover in 2026:
- 29% point to increased workplace demands leading to more vacancies.
- 29% cite a competitive job market, rising from 23% last year.
- 26% attribute turnover to employees retiring.
- 24% expect potential turnover due to better pay and benefits offered elsewhere.
Wages Likely to Rise as Employers Respond
Most hiring managers (67%) report that wages are poised to increase in 2026, while 27% expect no change.
Job seekers hold a much more reserved view. Only 39% expect wages to increase, while 51% expect them to stay the same this year.
Mercer’s Canada Compensation Planning Survey found that while total wage growth has remained relatively flat, the average total projected salary increase in 2026 is estimated around 3%.
“These findings reinforce something leaders have known intuitively for years — strong company culture isn’t just good for people. It’s good for business,” said Bob Funk Jr., CEO, President and Chairman of Express Employment International. “When employees feel supported and connected to a healthy work environment, turnover naturally declines. In a year when the cost of replacing a single employee continues to climb, culture has become one of the most financially sound investments any organization can make.”
Survey Methodology
The Job Insights survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals from November 3 – 19, 2025, among 504 Canadian hiring decision-makers.
The Job Seeker Report was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals from Nov. 7 to 21, 2025, among 502 adults ages 18 and older.
For full survey methodology, please contact Ana Curic at Ana@MapleLeafStrategies.com.
If you would like to arrange for an interview to discuss this topic, please contact Ana Curic at (613) 858-2622 or email Ana@MapleLeafStrategies.com.
