HRM 302 Chapter Notes - Chapter 11: Severance Package, Unemployment Benefits, Wrongful Dismissal

• School: Humber College
• Department: Human Resources
• Course: HRM 302
• Professor: Michelle A.Souilliere

Document Summary

Turnover: refers to the ter(cid:373)i(cid:374)atio(cid:374) of a(cid:374) i(cid:374)di(cid:448)idual"s e(cid:373)ploy(cid:373)e(cid:374)t (cid:449)ith a(cid:374) orga(cid:374)izatio(cid:374). Turnover can be either permanent or temporary and can be a result of action taken by either the employee or employer. The two most common reasons for turnover are downsizing or restructuring activity. There are four main components associated with turnover: separation costs, vacancy costs, replacement costs, and training costs. Separation costs: the cost of exit interviews and severance pay (if applicable) Vacancy costs: the next cost incurred due to temporary employees or over time of current employees. Replacement costs: the cost of recruiting and hiring a replacement to fill the vacant position. Training costs: formal and informal training new employees. Turnover rates vary from industry to industry, by the size of the company, current job market, financial position of a person and the economic position of the country. Overall, the reason for turnover can be classified into two subgroups: voluntary turnover and involuntary turnover.