The second implication is that expenses
typically increase as a result of employee
turnover. The many direct and indirect costs
associated with replacing staff can be sorted
into hard costs, soft costs, and opportunity
costs. Hard costs, such as newspaper advertisements,
have a direct financial impact on
the organization and are accounted for as
expenses. Soft costs, such as the time it
takes to interview applicants, will not show
up on an income statement; but those costs