According to Fayol, employee retention should not be given high priority as recruitment and selection costs are lower than the cost of hiring new workers.

Question

Quizplus · Accepted Answer

Fayol actually believed that employee retention was important and that the cost of losing valuable employees, such as the loss of institutional knowledge and the need to hire and train new workers, outweighed the costs of retaining current employees.

According to Fayol, Employee Retention Should Not Be Given High