The HR manager of a manufacturing firm was calculating the amount spent annually by the company on its staffing practices.Which of the following should be classified as a replacement cost?
A) background checks on candidates
B) candidates' travel expenses
C) referral bonuses
D) productivity losses due to the vacancy

Question

Quizplus · Accepted Answer

Replacement cost refers to the expenses incurred by a company to replace an employee who has left the organization. Productivity losses due to the vacancy is an example of a replacement cost. Background checks on candidates (A), candidates' travel expenses (B), and referral bonuses (C) are not replacement costs, but rather examples of recruitment costs.

The HR Manager of a Manufacturing Firm Was Calculating the Amount