#United States #Oklahoma City #Workforce Solutions #Employee Turnover #hiring leaders

US Companies Face Rising Employee Turnover Costs in 2026

In a worrying trend for businesses nationwide, recent findings from a survey by Express Employment Professionals and Harris Poll reveal that a striking 50% of hiring leaders expect employee turnover to increase significantly by 2026. This shift marks a remarkable rise from 39% just a year prior and 33% the year before that. The survey paints a stark picture of the labor landscape ahead, with associated costs escalating to an average of $45,236 per employee, up from $36,723 in the previous year.

Contributing Factors to Expected Turnover

While concerns about employee turnover are not new, this increase has pressing implications for organizations, especially as larger companies—those with 500 or more employees—express heightened apprehension. A staggering 64% of these larger firms anticipate a rise in turnover, compared to smaller businesses that report lower turnover expectations.

Several key factors drive this increase in anticipated turnover:
1. Increased Workplace Demands: 37% of employers believe that escalating demands in the workplace will result in more vacancies. This figure is up from 29% in the prior year's survey.
2. Competitive Job Market: The fierce competition for talent is another prominent reason, with 35% attributing the expected turnover to better job offers elsewhere, a rise from 23% last year.
3. Higher Pay and Benefits Elsewhere: Many companies are feeling the pinch as 32% acknowledge that attractive packages offered by competitors are likely to lure their employees away.
4. Career Changes: Finally, 29% note that a growing trend of employees changing careers contributes to the turnover surge, up from 22% previously.

Wage Increases Are Expected

Despite the looming turnover fears, many employers expect to respond to this challenge by increasing wages. A substantial 75% of hiring managers predict an uptick in their organization's average wages in 2026, while only 18% foresee no changes. In contrast, job seekers have a slightly less optimistic view, with 46% expecting wage increases and 40% anticipating stability in pay. According to Payscale's tenth annual salary budget survey, U.S. companies plan on an average salary increase of 3.5% for 2026, almost identical to the 3.6% increase noted for 2025.

The Importance of Company Culture

Bob Funk Jr., the CEO and President of Express Employment International, emphasizes that fostering a strong company culture is critical in mitigating turnover. He stated, "These findings reinforce something leaders have known intuitively for years — a strong corporate culture isn't just beneficial for employees; it also makes sound business sense." When workers feel they are part of a supportive environment, turnover rates tend to decrease, particularly during times when recruitment costs are on the rise.

Survey Methodology

The insights were drawn from two surveys conducted by Harris Poll on behalf of Express Employment Professionals. The Job Insights survey targeted 1,002 employment decision-makers from November 3 to 19, 2025, while the Job Seeker Report included responses from 1,003 adults aged 18 and older conducted from November 7 to 20, 2025.

As organizations gear up for the anticipated turnover surge in 2026, the emphasis on robust company culture and competitive compensation packages is more crucial than ever. Companies proactively addressing these issues will likely be better positioned to navigate the turbulent labor market that lies ahead.