Following costs are involved when a worker leaves a firm:
(i) Training costs,
(ii) The wage of new workers is more than what he produces,
(iii) Scrap and waste rates are higher for new workers,
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(iv) Higher accident rates for new workers,
(v) Loss of production during the gap period when an old employee leaves and a new employee joins,
(vi) Production equipment’s not fully utilised till the new worker is trained,
(vii) Overtime payments to meet delivery dates.