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PHR · Question #155

Besides the monetary investment made in an employee, what is the greatest drawback of employee turnover?

The correct answer is A. Loss of knowledge, skills, and abilities.. Beyond direct monetary costs, the greatest drawback of employee turnover is the loss of accumulated knowledge, skills, and abilities that the departing employee takes with them.

Workforce Management

Question

Besides the monetary investment made in an employee, what is the greatest drawback of employee turnover?

Options

  • ALoss of knowledge, skills, and abilities.
  • BNew employees will need to be hired, causing a burden to the HR department.
  • CThe loss of that employee will impact the morale of the whole team.
  • DNew employees will need more intense supervision, therefore causing additional time and

How the community answered

(26 responses)
  • A
    85% (22)
  • B
    4% (1)
  • C
    4% (1)
  • D
    8% (2)

Why each option

Beyond direct monetary costs, the greatest drawback of employee turnover is the loss of accumulated knowledge, skills, and abilities that the departing employee takes with them.

ALoss of knowledge, skills, and abilities.Correct

When an employee leaves, the organization loses their unique knowledge, skills, and abilities (KSAs) - including institutional knowledge, specialized expertise, and tacit know-how that cannot easily be replaced or transferred. This human capital loss is considered the most significant non-monetary impact because it directly and permanently diminishes organizational capability and competitive advantage.

BNew employees will need to be hired, causing a burden to the HR department.

While recruiting burden is a real cost of turnover, it is a process-related inconvenience rather than a fundamental and lasting loss of organizational human capital.

CThe loss of that employee will impact the morale of the whole team.

Morale impact is a secondary and often temporary effect of turnover, generally considered less significant than the direct loss of the departing employee's KSAs.

DNew employees will need more intense supervision, therefore causing additional time and

Increased supervisory time for new hires is a temporary and manageable training-related burden, not a permanent organizational loss comparable to the KSAs of the departed employee.

Concept tested: Impact of employee turnover on organizational human capital

Topics

#employee turnover#knowledge loss#KSAs#retention impact

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