Staff turnover costs in the Czech Republic

Abstract

The aim of the paper is to calculate the costs of staff turnover in the Czech Republic and to quantify the loss of production and costs of public budgets and organizations due to employee turnover. The outputs show that the analysed costs of staff turnover in the Czech Republic form a relatively large part of the costs of organizations and public budgets. The costs of employee turnover exert a significant impact on the economy of organizations and the state from the socio-economic point of view. The resulting amount is comparable to the average of European states and the USA. The average total employee turnover cost in the mentioned states is CZK 194,555 per employee. The paper also contains a recommendation to support the retention of critical key workers and ensure their continuity, leading to an increase in production and support of the knowledge-based economy as well as to a reduction of the negative effects of employee turnover.