GENERAL KNOWLEDGE

Detailed explanation-1: -There are three cost categories associated with employee turnover. Separation costs account for exit interviews, termination administration, severance pay, and unemployment compensation. Replacement costs account for attracting applicants, interviews, testing, and moving expenses.

Detailed explanation-2: -Separation costs are the costs an employer incurs during the process of terminating an employee, including severance pay, costs associated with unemployment insurance claims, the expense of continued benefits, etc.

Detailed explanation-3: -To calculate the cost of separation, average the total amount of time taken to complete the separation paperwork and multiply it by the cost per hour of the employees who complete those tasks.

Detailed explanation-4: -Replacing an entry-level employee costs 30%-40% of their annual salary. A mid-level employee 150% of their salary. And a highly skilled employee up to 400% of their salary. These general figures are helpful for making a point, and the point is that voluntary employee turnover is expensive.