Employee exit cost is a factor that can increase employee bargaining power and help him or her appropriate profits of the firm.

Question

Quizplus · Accepted Answer

Employee exit costs may tend to reduce employee bargaining power. An individual may face high personal costs when leaving the organization. Thus, the threat of the individual leaving may not be credible. In addition, employee expertise may be firm-specific and of limited value to other firms.

Employee Exit Cost Is a Factor That Can Increase Employee