From Hidden Costs to Measurable Impact: A Systematic Review for Employee Turnover Costing
Keywords:
burnout prevention; sustainable work design; Job Demands-Resources; HR managementAbstract
This study investigates how employee turnover costs are conceptualized, measured, and operationalized in the literature. It aims to address methodological fragmentation in turnover cost estimation and to clarify the full economic impact of employee turnover on organizations. Prior Work: The study builds on established research in human resource management, human capital theory, and organizational performance, where employee turnover is widely recognized as a critical cost driver. However, prior work shows inconsistency in how turnover costs are defined and measured, particularly regarding indirect and intangible costs. Approach: A systematic literature review was conducted following Preferred Reporting Items for Systematic Reviews and Meta-Analyses 2020 guidelines. The review analysed 32 peer-reviewed studies published between 2010 and 2025, retrieved from Elsevier Scopus, Web of Science, ScienceDirect, and JSTOR. Results: Findings show strong consistency in the inclusion of direct costs such as recruitment, selection, onboarding, and training. In contrast, indirect and intangible costs including productivity loss, knowledge erosion, coordination disruption, and innovation effects are rarely fully captured. The review also identifies widespread reliance on multiplier-based estimation methods with limited methodological rigor and weak validation. Implications: The study is relevant for researchers in human resource management and managerial accounting, as well as practitioners seeking more accurate workforce cost estimation. It highlights the need for improved integration between human resource analytics and structured cost accounting systems. Value: The paper synthesizes fragmented research streams and highlights a critical methodological gap, emphasizing the need for standardized and activity-based approaches capable of capturing the full economic impact of employee turnover.
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