ANNUAL COSTS OF DYSFUNCTIONAL FLUCTUATION ON THE EXAMPLE OF A MANUFACTURING COMPANY IN SERBIA

Sandra Barjaktarović

doi:10.5937/Oditor2302078B

Authors

Sandra Barjaktarović PhD student, MSc Sandra Barjaktarović EMBA, Assoc CIPD, University in Belgrade, Faculty of Organizational Sciences, Jove Ilića 154, Belgrade, R. Serbia Author

DOI:

https://doi.org/10.5937/Oditor2302078B

Keywords:

dysfunctional turnover, turnover costs, financial analysis, human resources

Abstract

High turnover of employees is a major problem of modern business, which has a negative effect on the success of the organization as well as on profitability. The aim of this paper is to measure the financial effect of unwanted turnover of employees on an annual basis in a large manufacturing company, as well as to check whether there is a significant difference in financial costs when leaving the company by different categories of employees. The results of the financial analysis of dysfunctional turnover, conducted by the Human Resources Department, show that the negative financial impact is close to 284,000 euros on an annual basis. It was also determined that the costs of re-employing candidates for management positions are approximately ten times higher than when hiring operators, and almost six times higher than when hiring candidates for jobs related to administration.

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