We get it. Losing a skilled team member is frustrating and can impact your team’s productivity and morale.
By staying up-to-date on labour turnover rates, you can take informed steps to create a workplace where people feel genuinely valued and motivated to stay because your workforce needs to be as invested in your organization as you are in your people.
Let’s dive into the data and explore practical solutions to reduce turnover and build a thriving company culture.
Canada’s Average Labour Turnover Rate
The average voluntary turnover in Canada was 15% in 2023, with involuntary turnover at 4.6%.
Turnover Rates Across Industries
Employee turnover rates can vary significantly across different sectors.
Here’s how that played out in Canada across certain industries in 2023:
- Retail & Wholesale: 37.4%
- Other Non-Manufacturing: 18.2%
- Healthcare Services: 18%
- Consumer Goods: 18%
- Services (Non-Financial): 17.5%
- Logistics: 17.2%
Turnover Rates by Position
Different roles within a company or industry see variations in turnover rates as well. Here are some examples:
- Production and Skilled Trades: 7.1%
- Supply Chain and Transportation Services: 6.9%
- Engineering and Science: 6.2%
- Customer Service and Contact Center Operations: 5.9%
- Executives: 3.5%
- Communications and Corporate Affairs: 2.8%
- Creative, Design, and Media: 2.2%
- Data Analytics: 2.2%
Average Job Tenure
Examining job tenure alongside turnover offers valuable insights into loyalty, commitment, and team stability. Low tenure rates might indicate disruptions in personnel and productivity. We encourage you to explore the tenure data below to give your retention strategy the holistic attention it deserves.
Most Common Tenure Lengths
Statista reports most Canadian employees—roughly 6.5 million people—spend one to five years with their current employer. The next most common tenure is 10 to 20 years.
Overall, the average tenure length for Canadian workers is 101.5 months or about 8.5 years.
Interestingly, the longer employees’ tenure, the lower their turnover rate. Data shows more experienced employees and those in higher-paid roles are more likely to remain loyal to their employer.
Gender Differences in Tenure
There isn’t a huge tenure difference between men and women in Canada. Tenure greater than 10 years is slightly higher for men (37.4%) compared to women (36.8%), which may be due to male workers being slightly older on average.
Tenure differences between genders also depend on the occupation and region. For example, the tenure differences in Saskatchewan are lower in healthcare and social assistance compared to Alberta.
It’s also important to consider gender identities, specifically those who do not identify with a binary gender. While data on this in relation to tenure in Canada is currently limited, we encourage you to give our gender and LBGTQ+ guide a look to learn more about the impact and importance of building a gender-inclusive work environment.
Regional Variations in Tenure
Average tenure can also vary by region, influenced in part by differences in industries, job opportunities, and economic conditions. While the differences in tenure among provinces are generally modest, Newfoundland and Labrador has the longest average tenure at 109.6 months (9.1 years), while Alberta has the shortest average tenure at 94.9 months (7.9 years).
Reasons for Voluntary Employee Turnover
Many factors can cause employees to quit their jobs. Research shows the top reasons for leaving a job voluntarily in 2024 include:
- Better benefits or compensation offers elsewhere (37%)
- Increased demands in the workplace (25%)
- Competitive job market (24%)
- Feeling overworked (22%)
- More career advancement opportunities elsewhere (19%)
- Lack of remote work options (19%)
Naturally, pay, benefits, and advancement opportunities can be significant motivators for employees, but the importance of work-life balance and flexibility for today’s workforce is also becoming increasingly apparent.
Company Cost of Labour Turnover in Canada
When employees leave, it doesn’t just place a heavy burden on your team—it also impacts your bottom line.
Replacing employees costs Canadian organizations an average of $30,674 every year. For some, that number can run even higher, with 15% of companies reporting turnover costs them over $100,000 a year.
These costs encompass expenses like:
- Recruiting new candidates
- Setting up interviews and assessments
- Conducting background checks
- Training new hires
Not to mention, there’s generally a period of decreased productivity until your new employee is fully onboarded.
Strategies for Reducing Labour Turnover
The takeaway? Retention shouldn’t be an afterthought.
The actions you take today ultimately influence the company culture and employee experience—so the time to adopt new retention strategies is now.
Use the top reasons for voluntary employee turnover as your starting point. After all, the best way to tackle a problem is to get to the root of what’s causing it.
Start with a Conversation
Have a chat with your employees about what they want out of their jobs and what they feel could be improved. Whether it’s through surveys or one-on-one discussions, hear from them first.
Since every workplace, role, and industry is different, what “increased demands” or “career advancement opportunities” look like will differ. Plus, there will likely be additional pain points your employees share that are specific to the company or individual. Thus, it’s best to talk to your employees to get the full context before you start implementing strategies.
Brainstorm Solutions with Employees
Once you have a good understanding of your team's needs, work together to brainstorm solutions. The more involved your employees are in the process, the more likely they’ll be to support your retention strategies.
Remember, creating a positive employee experience is all about understanding and addressing your team’s unique needs and goals.
Keep Inclusivity Front and Center
Organizations consist of multiple generations, demographics, and gender identities. Leverage the collective strengths of diverse experiences to create an even more inclusive environment.
The more you can support the experiences, needs, and preferences of your employees, the safer they will feel. This psychological safety can make all the difference in helping people feel seen and valued, making them want to stick around.
Make Employee Recognition Part of Your Retention Strategy
It’s time to rethink your employee experience. By creating a workplace culture that genuinely cares about your people’s wants, needs, and goals, you can drastically reduce turnover and build a stronger team.
Awardco is here to help. Our rewards and recognition platform makes it easy to create a recognition program that truly resonates with your employees. Our ROI calculator can help you get started on the right track.
