Study on the Impact of Road Accidents on Costs of Employee Turnover

Abstract:

The objective of the article is to present and compare the findings of the polish research in 2014 and 2020 involving economic loss in enterprises due to employee’s temporary work disability or a total employee loss as a consequence of road accidents. Road safety is a continuous social problem that causes substantial economic damage worldwide. The results of the author’s original research conducted in Poland demonstrate that one of the social groups exposed to costs associated with the road transport safety situation are enterprises, both transport and other ones. The level of such generated losses among enterprises was estimated with the application of the methods of capitalised costs of acquisition of a professional. The Polish research example reveals that despite the rising awareness of the high risk of loss of life or physical disability through road traffic participation, no one – not even enterprises – can be prepared for its severe impacts. Every year, road accidents pose a threat to the interest of economic enterprises, for they take company resources away from other important priorities.

Review of turnover costs at a enterprises due to road accidents risk helps managers gain insights about the magnitude and determinants of this managerial challenge and assess the implications for organizational effectiveness.