Consequences of Employee Mobility

Abstract

Abstract: Purpose of the article: The level of unemployment and employee mobility can be considered as one of the persisting economical problems. Current knowledge economy is based on the quality and productivity of labour (employees). Employees and their productivity are thus key factor of success of economy. This study examines causes and consequences of employee mobility and how does it affect economy of state and organisations. Paper describes based on the content analysis and primary research employee mobility and suggests practices how to minimize its negative impact. Methodology/methods: The outputs are listed based upon primary and secondary research. Secondary data sources were processed from Czech statistical office and content analysis of scientific papers which focus on remuneration of employee mobility costs. Primary data has been collected in two successive quantitative surveys by means of questionnaire investigation. The surveys were focus on random sample of employees (who had already left their jobs). Scientific aim: The aim of the paper is to reveal costs and consequences of employee mobility and to suggest recommendations to keep employees in organisations in order to minimize loses, costs and production losings. Findings: The results show calculation of employee mobility costs. Costs per unemployed employee are listed. The outputs reflect whether it is just loss of production (employee just exchange job positions) or additional loss of state caused by receiving unemployment support, lowering of VAT and other related items. The revealed outputs allow us to assume that employee mobility is quite expensive phenomenon, not just because of employee turnover cost, but also because of high loss of production in organisations and also in state economy. All results are counted per employee per year. Finally, recommendations to lower employee mobility and its costs and losses are listed. Suggestions are based on the results of surveys of employees, who listed their reasons to leave job positions. Conclusions: The outcomes provide a specification and consequences of employees’ mobility. Further monitoring of causes and consequences of employee mobility together with greater emphasis into all related practices is necessary to obtain results for future prognosis.