Which of the following is an appropriate method for calculating the financial impact on the firm that results from the loss of a key employee?
A)research comparable salaries on employment data websites
B)never let these employees be in the same building at the same time
C)a multiple of the key person's salary
D)calculate the net present value of the future salary owed to the employee under his/her existing employment contract.

Question

Quizplus · Accepted Answer

Calculating a multiple of the key employee's salary is an appropriate method for estimating the financial impact because it takes into account not just the direct costs of replacing the employee (such as recruitment and training costs), but also the indirect costs (such as lost productivity and decreased morale among remaining employees). However, it is important to note that this method is only an estimate and may not capture all of the potential costs and benefits of losing the key employee.

Which of the Following Is an Appropriate Method for Calculating