Question

Reduced productivity and decreased customer service are considered _______ costs of turnover. Select one: a. Replacement b. Training c. Hidden d. Separation

Answer 1

C) Hidden costs (or indirect costs)

Step-by-step explanation:

In this question, turnover refers to employee turnover which is the rate at which current employees leave a company and new employees enter the company.

Turnover can be good and functional when it involves employees that performed poorly, but is can damage the company when it involves key individuals and high performers.

The problem with high turnover rates is that several areas may be negatively affected, e.g. while a new worker is being trained, his/her performance will not be as good as an experienced and already trained worker.