What is risk of loss in SAP LOD-SF-EC - Employee Central?

SAP Term: risk of loss

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: An assessment of how likely an employee is to leave the company or his/her position owing to, for example, dissatisfaction or lack of promotion opportunities.

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• Key Concepts: 
  Risk of loss is a concept used in SAP Employee Central to identify the potential financial losses that may occur due to employee turnover. It is calculated by taking into account the cost of recruiting and training new employees, as well as the potential lost productivity due to the time it takes to fill the vacancy.
  
  How to use it: 
  Risk of loss can be used to identify areas where employee turnover is high and where additional resources may be needed to reduce the risk of financial losses. It can also be used to identify areas where additional training or other measures may be needed to reduce employee turnover.
  
  Tips & Tricks: 
  When calculating risk of loss, it is important to consider both direct and indirect costs associated with employee turnover. Direct costs include recruitment and training costs, while indirect costs include lost productivity due to the time it takes to fill the vacancy.
  
  Related Information: 
  Risk of loss is closely related to other concepts such as employee engagement and retention. It is important to understand how these concepts are related in order to effectively manage employee turnover and reduce financial losses.