4. The High Cost of Employee Separations

Employee separations (often called turnover) occur when an employee permanently leaves an organization. Google developed a formula that predicts the probability that each employee will leave. The Wall Street Journal reported that Google’s formula helps the company “get inside people’s heads even before they know they might leave,” says Laszlo Bock, who runs human resources for the company.1 If we know someone may leave, should we try to stop him or her? The U.S. Bureau of Labor Statistics reports monthly job opening and labor turnover rates. Figure 4-1 shows the monthly results from years 2000–2010. These monthly rates translate into annual rates that were as high as 31 percent in 2001 and as low as 19 ...

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