Loss of Output
When an employee leaves and the position is not filled immediately, the firm loses that worker’s output while the position remains vacant. In a strong economy with low unemployment. as occurred in the united States during the late I 990s. this la~ time can be considerable. For example, if a firm averages $ 3O,OOO in annual sales per employee then a position that remains unfilled for three month, cost the Finn $ 75,000 in revenues,