An organisation’s human capital is an intangible asset and as such is
difficult to quantify. However, the average cost of voluntary defection
can be conservatively estimated at £50,000 per employee, including
the expense of recruitment and training. As a reduction in staff
turnover equates to cost savings, HR practitioners in every industry
are implementing retention programmes into their human capital
management frameworks. Remuneration is no longer the simple sol-
ution to retaining valuable employees. In a recent survey of
professionals, over 35 per cent of the respondents rated work/life
balance as their primary career concern. One way for organisations to
measure employee satisfaction is by using attitudinal metrics, the data
from which can be used to enact strategic change.The introduction of
employee stock options is another way to increase a workforce’s com-
mitment and loyalty.When resources are limited, companies can design
bespoke retention programmes for their highest-performing employees.
46) The value of an organisation’s human capital can be quan-
tified using data from employee surveys. (FALSE)
The answer is FALSE based upon the opening statement
that An organisation’s human capital is an intangible asset and
as such is difficult to quantify.
47) The passage suggests that financial compensation has been
the primary way for organisations to retain high performers.
(TRUE)
The answer is TRUE based upon the following statement:
Remuneration is no longer the simple solution to retaining valu-
able employees.
48) The cost of implementing a corporate retention scheme can
be offset by saving on staff turnover. (CAN’T TELL)
Do not be misled into thinking that this statement is TRUE.
The passage states that As a reduction in staff turnover equates
to cost savings, HR practitioners in every industry are imple-
menting retention programmes into their human capital
management frameworks. However, this does not mean that
Graduate and managerial level verbal reasoning tests 241
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