cost of turnover for low-complexity jobs in
our sample were 25.8 percent, compared to
9.6 percent for high-complexity jobs. This
percentage, based on a ratio of the number
of applicants interviewed divided by the
number hired, suggests that if the labor pool
is poor for entry-level positions, managers
spend a considerable amount of
time attempting to identify acceptable candidates.
When unemployment rates are
low, there may be fewer qualified applicants
for low-complexity jobs. Thus, firms
may be required to spend more time searching
through the applicant pool, reviewing
applications, and conducting interviews to
find suitable candidates. High turnover rates
can exacerbate the situation. Even when the
applicant pool seems large, it may be easier
to differentiate qualified candidates for complex
jobs than it is to sift through a large,
homogeneous applicant pool to find qualified
individuals for low-level positions. In
either situation, the percentage of the cost of
lost productivity as a percentage of total
turnover costs is substantial. For lowcomplexity
jobs it was 55.2 percent, compared
to 67.6 percent for higher-complexity
jobs. The differences may be due in part to
time it takes to learn the essential tasks,
duties, and responsibilities of a complex
position, even when the education and skill
level of the new employee is relatively high.