Year: 2019
Type: report
Abstract: We estimate turnover costs in small retail sales teams using daily sales data and an advance notice requirement to address endogeneity concerns.In addition to short-staffing and onboarding costs, we identify two less familiar sources of turnover costs: incumbent workers' recruitment activities, and reductions in team morale after a departure is announced.Our estimates of total turnover costs are relatively modest, however: Ten percent higher turnover is about as costly as a 0.6% wage increase.We attribute these low costs to a set of complementary personnel policies which ensure that only 25 percent of departures result in a short-staffing spell.
DOI: 10.3386/w26179
Authors: Peter Kuhn, Lizi Yu
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3125675350