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Ask business leaders about their top priority, and most will give the same answer: growth. In fact, 63% say it’s their number one goal. What’s less spoken about is how often that same priority becomes a barrier to execution.
Recent data from Paychex’s 2026 Business Leaders Priorities survey of 750 business leaders across companies with five to 1,000 employees reveals a striking contradiction: many of those same leaders prioritizing growth say expansion is intensifying operational strain rather than alleviating it. The data from this survey (referenced throughout) shows that as organizations push to scale, they are encountering mounting pressures around hiring, training, retention and administrative workload — pressures that can stall progress instead of accelerating it.
This paradox is particularly stark in today’s economic environment, where rising costs, workforce expectations and administrative complexity collide at precisely the moment companies are trying to move faster.
Rapid growth strains hiring, training and retention
Growth requires people — and people tend to come with costs that extend far beyond payroll. Recruiting, hiring, onboarding and training all demand employee time and capital, and when those investments fail to deliver the expected long-term returns, the impact can be profound.
More than half of businesses (51%) report experiencing employee separations within the past two years. Each departure represents not just a vacancy, but an amplified, compounding set of expenses and disruptions. Misalignment uncovered during onboarding or insufficient training support can leave employers absorbing costs without realizing productivity gains.
Technology-related challenges further complicate scaling efforts. Among business leaders, 27% cite employee training on HR tools as a top tech challenge, while 26% point to remote onboarding. Ambitious growth goals can push organizations to expand faster than their systems and processes can support, increasing the likelihood of turnover and operational drag.
The true hidden costs of inaction
Turnover costs are often underestimated because many of the consequences aren’t instantly visible on a balance sheet. On average, losing an employee costs around $12,531, regardless of company size. But the financial cost is only part of the story.
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