EVALUATION OF MEASURES TO REDUCE EMPLOYEE TURNOVER IN SLOVENIAN ORGANISATIONS

This paper provides an estimate of the costs of reducing employee turnover and an estimate of the costs of employee turnover in Slovenian companies. The study included all economic activities, and in this respect it is one of the few studies that focus on the complete economy of an individual country. The study estimated two groups of costs; namely, the costs of employee-preferred measures for reducing employee turnover rates in organisations and the average costs of replacing an employee in an organisation. When evaluating the costs of employee-preferred measures we mainly wanted to evaluate the costs of subsidising informal meetings, bonuses for the continuity of employment and bonuses for workplace attendance. Most other measures preferred by employees are of a non-financial nature, except for promotion, which we did not evaluate specifically as it is primarily part of the company's employment and job diversity policy. In estimating the costs of employee turnover we focused only on the costs of hiring a new employee: the cost of replacing an employee and the cost of introducing the new employee. Using several assumptions the estimated total cost of employee turnover in Slovenia ranges from (sic)2.2 million to (sic)3.4 million per year in year 2011. In addition to the estimations of both groups of costs, this paper also provides a comparison of evaluations of selected measures for reducing employee turnover as perceived by employees and employers. We arrived at important conclusions, as it turned out that employers give higher ratings to financial measures, while employees give higher ratings to non-financial measures.