Canadian Turnover Costs Surge, Pressuring Wage Growth
Event summary
- Employee turnover in Canada is costing companies an average of $30,680 per departing employee, up from $29,234 last year.
- 28% of Canadian hiring managers anticipate employee turnover to increase in 2026.
- Larger organizations (100+ employees) are significantly more concerned about rising turnover (37%) than smaller businesses (22%).
- 67% of hiring managers plan to increase wages in 2026, while job seekers are less optimistic, with only 39% expecting wage increases.
The big picture
Rising employee turnover costs represent a significant headwind for Canadian businesses, particularly those with larger workforces. This trend is exacerbated by a competitive job market and the looming impact of retirements, forcing employers to consider wage increases while simultaneously dampening employee expectations. The data highlights the growing importance of non-monetary factors, such as company culture, in attracting and retaining talent.
What we're watching
- Wage Dynamics
- The divergence between employer and employee expectations regarding wage increases suggests potential labor unrest or a slowdown in real wage growth, impacting consumer spending.
- Culture Investment
- The emphasis on company culture as a retention tool indicates that organizations will increasingly prioritize employee well-being and engagement, potentially shifting resource allocation away from other areas.
- Scale Impact
- The disproportionate concern among larger organizations suggests that economies of scale may not be mitigating turnover pressures, and that more targeted retention strategies will be necessary for these firms.
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