Labour turnover

• Labour turnover calculation: 


  (Number of employees leaving during a period/ Average number of employees during a period) * 100
• What is labor turnover?

  The rate at which employees leave a business
• How is labor turnover calculated?

  Number of staff leaving divided by staff employed times 100
• Why is a low labor turnover desirable?

  It reduces recruitment and selection costs
• What problems can high labor turnover cause for an organization?

  Increased recruitment costs and loss of experience
• What impact does high labor turnover have on remaining staff?

  It can be demotivating for remaining employees
• What are common causes of high labor turnover?

  Poor working conditions and lower pay
• How does high capacity utilization contribute to labor turnover?

  It can lead to employee burnout
• What role does poor training play in labor turnover?

  It can lead to feelings of no career development
• What management issues can lead to high labor turnover?

  Poor management practices can drive employees away
• What solutions can organizations implement to improve labor turnover?

  • Improve working conditions
  • Increase pay to match industry standards
  • Reduce capacity utilization to sustainable levels
  • Enhance training programs
  • Conduct exit interviews to identify issues
• Why might some businesses not be concerned about high labor turnover?

  They have a large pool of workers to recruit from
• In which industry is high labor turnover commonly accepted?

  Fast food industry
• What factors make recruitment easier for some businesses with high labor turnover?

  Limited recruitment costs and easy induction training
• What are the implications of reducing capacity utilization for an organization?

  • Increased flexibility for employees
  • Potential impact on efficiency
  • Moving from 100% to 95% utilization may be beneficial