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ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work

A call centre has a high labour turnover. Staff leave within six months because of poor supervision and unclear targets. Which consequence for the organisation is most directly linked to this turnover?

High labour turnover leads to higher recruitment and training costs and a loss of experience and knowledge. New starters take time to become productive, so the organisation does not gain cost savings or better customer relationships from constant replacement.

  1. AHigher recruitment and training costs together with loss of experienceCorrect
  2. BLower costs because new staff are always cheaper and more productive
  3. CImproved customer relationships through frequent new contacts
  4. DA guaranteed fall in the need for performance appraisal

Explanation

Each leaver must be replaced, causing advertising, selection and induction/training costs, and accumulated knowledge is lost, reducing service quality. New starters are typically less productive while learning, so the claim that they are more productive is wrong.

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