Turnover Costs for Firms and Workers
Turnover costs are the significant losses incurred by both employers and employees when an employment relationship is terminated. For the firm, these costs include recruiting and assessing a suitable replacement, providing necessary induction and job-specific training, and covering the lost productivity until the new hire is fully effective. For the worker, the costs are often more profound and multifaceted. They face not only the potential for a prolonged period of unemployment and the effort of a job search but also the loss of valuable relationship-specific assets. This includes the sudden devaluation of firm-specific technical and social skills, the dissolution of their professional network and workplace friendships, and potentially severe personal disruptions such as needing to relocate, which can also negatively affect their family's social connections.
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Social Science
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Economy
CORE Econ
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
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