49. Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of
turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also
concerned about the hidden costs of turnover that generally include:
missed project deadlines.
co-worker coaching and salaries.
the cost of pre-employment medical tests.
the overtime paid to employees covering the separated employees’ jobs.
50. Arden Insurance’s claims processing facility has been a major employer in the town of Arbor for over
20 years drawing mainly on workers with minimal skills and education. A large telemarketing firm is
about to set up its business at Arbor, and it is planning to employ low-skilled workers. Which of the
following statements is true in this case?
As Arden and the marketing firm belong to different industries, the impact on Arden’s
workforce will be minimal since workers rarely switch between industries.
The trained workforce will not leave even if the telemarketing firm offers higher pay than
Arden.
If Arden cannot offer higher wages, it needs to make sure that its current employees are
satisfied with the intangible aspects of their jobs in order to retain them.
Workers in small towns tend to be loyal to their employers hence, Arden’s current
employees are likely to stay with Arden.
51. In the current year, many talented teachers have submitted their resignation notices in Sunnydale High
School. The president of the school management board is in a fix at this attrition even when the school
pays competitive wages to its teachers. In this case, which of the following is the best recommendation
for the president to follow?
Money is the main reason people stay in a job, so the school needs to consider how to raise
salaries even higher.
When pay is competitive, other job factors have more impact on turnover and need to be
considered and improved.
In service sector jobs, people are motivated more by the psychological aspects of the work
than by tangible rewards.
Teachers usually leave their jobs due to involuntary turnover, so pay is not a big factor in
their retention.
52. _____ is an intangible reward for performance.