Human Resources Certification Institute (HRCI) Practice Exam 2026 - Free HRCI Practice Questions and Study Guide

The term that refers to the financial and emotional costs associated with employee turnover is employee churn. This concept encompasses not only the direct costs associated with recruiting and training new employees but also the indirect costs, such as lost productivity and the impact on team morale when an employee leaves. Employee churn highlights the ongoing cycle of employees joining and leaving an organization, drawing attention to the detrimental effects on both the workforce and the overall effectiveness of the organization. Understanding employee churn is critical for businesses as it helps to formulate strategies to improve retention and reduce costs associated with turnover.

Workforce attrition typically refers to the gradual reduction of a workforce over time, often through natural means such as retirements or resignations, without necessarily addressing the associated costs. Human capital refers to the economic value of an employee's skills and knowledge, but it does not specifically capture the effects of turnover. Talent acquisition is the process of identifying and attracting potential employees but does not encompass the costs incurred once turnover occurs. Each of these alternatives lacks the specific focus on the financial and emotional toll of employee turnover that employee churn aptly describes.