Methodology for relating the cost of employee turnover, employee retention, and lost production costs

Luis Miguel Salas-Hidalgo; Jorge Antonio Velasco-Taipe

doi:10.18687/LACCEI2024.1.1.1117

Methodology for relating the cost of employee turnover, employee retention, and lost production costs

Luis Miguel Salas-Hidalgo
, Jorge Antonio Velasco-Taipe

Faculty of Engineering

University of Arizona

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

Employee turnover generates hidden costs that cannot be recovered, competing with retention costs and their production impact. Using a mathematical algorithm, this study aims to develop a methodology to figure out lost production and related fixed manufacturing overhead costs. This will allow us to estimate the cost of lost output from an employee's layoff until a replacement reaches the required efficiency, considering not only severance costs but also lost production costs. Additionally, we will analyze the cost-benefit of offering salary increases or other incentives against retaining employees, comparing them to the associated costs of increased production and marginal income from the retained employee.

Original language	English
Title of host publication	Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology
Subtitle of host publication	Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024
Publisher	Latin American and Caribbean Consortium of Engineering Institutions
ISBN (Electronic)	9786289520781
DOIs	https://doi.org/10.18687/LACCEI2024.1.1.1117
State	Published - 2024
Event	22nd LACCEI International Multi-Conference for Engineering, Education and Technology, LACCEI 2024 - Hybrid, San Jose, Costa Rica Duration: 17 Jul 2024 → 19 Jul 2024

Publication series

Name	Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology
ISSN (Electronic)	2414-6390

Conference

Conference	22nd LACCEI International Multi-Conference for Engineering, Education and Technology, LACCEI 2024
Country/Territory	Costa Rica
City	Hybrid, San Jose
Period	17/07/24 → 19/07/24

Keywords

Employee turnover
cost-benefit analysis
hidden costs
lost production
mathematical algorithm
retention incentives

Access to Document

10.18687/LACCEI2024.1.1.1117

Cite this

Miguel Salas-Hidalgo, L., & Antonio Velasco-Taipe, J. (2024). Methodology for relating the cost of employee turnover, employee retention, and lost production costs. In Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology: Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024 (Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology). Latin American and Caribbean Consortium of Engineering Institutions. https://doi.org/10.18687/LACCEI2024.1.1.1117

Miguel Salas-Hidalgo, Luis ; Antonio Velasco-Taipe, Jorge. / Methodology for relating the cost of employee turnover, employee retention, and lost production costs. Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology: Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024. Latin American and Caribbean Consortium of Engineering Institutions, 2024. (Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology).

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abstract = "Employee turnover generates hidden costs that cannot be recovered, competing with retention costs and their production impact. Using a mathematical algorithm, this study aims to develop a methodology to figure out lost production and related fixed manufacturing overhead costs. This will allow us to estimate the cost of lost output from an employee's layoff until a replacement reaches the required efficiency, considering not only severance costs but also lost production costs. Additionally, we will analyze the cost-benefit of offering salary increases or other incentives against retaining employees, comparing them to the associated costs of increased production and marginal income from the retained employee.",

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Miguel Salas-Hidalgo, L & Antonio Velasco-Taipe, J 2024, Methodology for relating the cost of employee turnover, employee retention, and lost production costs. in Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology: Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024. Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology, Latin American and Caribbean Consortium of Engineering Institutions, 22nd LACCEI International Multi-Conference for Engineering, Education and Technology, LACCEI 2024, Hybrid, San Jose, Costa Rica, 17/07/24. https://doi.org/10.18687/LACCEI2024.1.1.1117

Methodology for relating the cost of employee turnover, employee retention, and lost production costs. / Miguel Salas-Hidalgo, Luis; Antonio Velasco-Taipe, Jorge.
Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology: Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024. Latin American and Caribbean Consortium of Engineering Institutions, 2024. (Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AB - Employee turnover generates hidden costs that cannot be recovered, competing with retention costs and their production impact. Using a mathematical algorithm, this study aims to develop a methodology to figure out lost production and related fixed manufacturing overhead costs. This will allow us to estimate the cost of lost output from an employee's layoff until a replacement reaches the required efficiency, considering not only severance costs but also lost production costs. Additionally, we will analyze the cost-benefit of offering salary increases or other incentives against retaining employees, comparing them to the associated costs of increased production and marginal income from the retained employee.

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Miguel Salas-Hidalgo L, Antonio Velasco-Taipe J. Methodology for relating the cost of employee turnover, employee retention, and lost production costs. In Proceedings of the 22nd LACCEI International Multi-Conference for Engineering, Education and Technology: Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0., LACCEI 2024. Latin American and Caribbean Consortium of Engineering Institutions. 2024. (Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology). doi: 10.18687/LACCEI2024.1.1.1117

Methodology for relating the cost of employee turnover, employee retention, and lost production costs

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Keywords

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