Staffing Organizations

Posted: October 17th, 2013





Staffing Organizations






Staffing Organizations

The most likely costs and benefits of voluntary turnover to vary according to type of job are both direct and indirect costs related to leaving the post. The direct costs include the replacement costs and transition costs. The indirect costs include the loss in the rate of production, reduced performance levels, overtime paid due to shortage of human labor and low morale. The benefits realized by the employer are however, limited and may include the hiring of a better employee and the possibility of hiring one with a reduced salary (Herbert, Heneman, Judge, & Kammeyer-Mueller, 2011).

Under general situations, all the potential costs and benefits associated with voluntary turnover are likely to increase or decrease depending on the type and level of the job. To illustrate this, in the event of the resignation of the head product designer of a design company, several costs are associated with the sudden departure of the individual. These costs are; the costs incurred if the individual has left office to work for a competitor of the former design company and the temporary filling in of the position the person held. Other costs are the loss of clients who depended on the individual, the cost of potential clients whom the company fails to acquire, staffing procedure for filling the vacant post, and the various costs incurred by the company in training the individuals who end up filling in the vacant post. On the other hand, the company is bound to realize some of these possible benefits, which include; having the opportunity to obtain an even more qualified product designer, newly acquired knowledge, skills and abilities, motivation and the possibility of acquiring an employee with demand for a lesser pay deal than the former (Heneman, 2008).

However, the costs and benefits of voluntary turnover involving an employee who serves in a restaurant would be limited to ones that are much less significant in magnitude. The costs would include the time lost by the manager in hiring new employee, unnecessary overtime, training costs, low morale and time needed in dealing with the case. The benefits would however be limited to the acquisition of a better employee and the possibility of having a replacement with a lower pay package.



Herbert, H., Heneman, Judge, T., Kammeyer-Mueller, J. (2011). Staffing Organizations. Houston, TX: McGraw-Hill Companies, Inc.

Heneman, H. (2008). Staffing Organizations. Houston, TX: McGraw-Hill Ryerson, Limited.


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