Herbert,the executive vice president of HR for an international bank,has learned that a high-level market specialist has resigned unexpectedly.This specialist makes $250,000 per year in salary.Herbert wonders how he will manage to absorb the cost of this turnover into this year's budget.He estimates using a common rule of thumb,that it will cost the bank as much as ____ to replace this individual.

Question

Quizplus · Accepted Answer

The common rule of thumb for estimating the cost of replacing an employee is up to 200% of the employee's annual salary, especially for high-level or specialized positions. Therefore, for a specialist making $250,000 per year, the cost to replace them could be as much as $500,000 (200% of $250,000).

Herbert,the Executive Vice President of HR for an International Bank,has