Article 1.2. The economic impact of employee behaviors on organizational performance (Cascio, 2006)

Question 1

Total costs of leaving employees

Answer 1

1.5 to 2.5 times annual salary.

Question 2

Financial impacts of employee behavior (4)

Answer 2

1. Retention.
2. Absenteeism (not being at work) and presenteeism (being at work but not working).
3. Unhealthy lifestyles.
4. Employee attitudes.

Question 3

Improved performance

Answer 3

A measured increase in knowledge, skills, attidudes, and/or social behavior, at individual, team, or organizational level.

Question 4

Selection or training?

Answer 4

Selection, because then you can hire high-caliber employees that can learn faster and more.

Question 5

Validity

Answer 5

Job-relatedness of a measure.

Question 6

Policy implications for employers to decrease financial impacts

Answer 6

1. Enhance retention:
   - Opportunities for career development.
   - Sense of confidence about the future.
   - Joy in work.
   - Feelings of accomplishment.
   - Employment security.
2. Control absenteeism and presenteeism: assess the problem and know where to apply control mechanisms.
3. Change unhealthy lifestyles:
   - Educate employees.
   - Identify health-risk factors.
   - Help employees through health lifestyles and behaviors.
   - Help employees maintain these.