Labour Turnover

• What is labour turnover?


  The rate at which employees leave a company and are replaced by new hires
• Why may some employees leave?

  Retirement

  Maternity leave

  Death

  Long term illness

  Unsuitability

  Changes in strategy
• Labour turnover needs to be managed if the business is to succeed

  Employee retention = the ability of a business to convince its employees to remain with a business
• Formula for labour turnover?


  (number of employed during the period/number of employed during the period) X 100
• Ways to reduce staff turnover?


  Pension contributions

  Effective recruitment and training

  Training and development opportunities

  Internal promotions over external

  Job enrichment

  Benefits

  Discounts

  Access to other services