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employee turnover over the next year, with an average annual cost of USD 36,295 due to rehiring and lost productivity. Notably, over 20% of hiring managers estimate these costs could exceed USD 100,000. Remaining employees often experience burnout from increased stress, leading to “turnover contagion,” where departures accelerate further. Team dynamics suffer as relationships are disrupted, weakening collaboration and agility within organisations. What’s Driving Employees to Leave in 2025? Several factors are contributing to the rising turnover rates in 2025: Shifting Job Market Dynamics The rise of remote work and gig economy opportunities has significantly expanded employment options for workers globally. This increased flexibility challenges traditional retention strategies, as employees now have the freedom to choose roles that better fit their personal and professional needs. Lack of Career Development Employees are quick to leave companies that don’t invest in
Processing final payroll settlements, tax documentation, and compliance with PIT regulations strain HR and payroll teams. their future. Lack of upskilling, reskilling, or clear career paths is one of the most cited reasons for resignations. Employees are increasingly seeking purpose- driven roles and benefits that provides continuous learning and development opportunities. The same PwC study revealed that 67% of employees depend their decision to stay in their current job or switch to a new one on the offered upskilling opportunities. Work-Life Balance Burnout remains a significant issue across industries, with many employees struggling to maintain a healthy work- life balance. Randstad’s Workmonitor report found out that 83% of workers now prioritise work-life balance over salary, reflecting a growing emphasis on personal well-being and time management.
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GLOBAL PAYROLL MAGAZINE ISSUE 12
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