Employee cost as a % of turnover

• What is the formula for employee costs as a percentage of turnover?

  Employee costs divided by turnover times 100
• Where can turnover be found in financial statements?

  On the income statement as revenue
• What is a major type of employee cost?

  Salaries or wages
• How does training relate to employee costs?

  Training is an employee cost for staff development
• What is another employee cost associated with hiring?

  Recruitment and selection
• What are the three major employee costs discussed?

  • Salaries or wages
  • Training
  • Recruitment and selection
• Why is the employee cost as a percentage of turnover useful for analysis?

  It helps expand points in financial analysis
• How do labor-intensive businesses compare to capital-intensive businesses regarding employee costs?

  Labor-intensive businesses have higher employee costs
• What might a business do to increase labor productivity?

  Implement training programs for employees
• What effect does high labor turnover have on recruitment costs?

  It leads to higher recruitment costs
• What does a lower employee cost as a percentage of turnover indicate?

  Better efficiency in managing labor costs
• What could a very low employee cost as a percentage of turnover suggest?

  Potentially low salaries and wages
• What issues could arise from low employee costs?

  Quality, creativity, and innovation problems
• How can low training impact a business?

  It can affect labor productivity negatively
• What are the implications of employee costs as a percentage of turnover?

  • Indicates efficiency in labor cost management
  • A very low percentage may suggest issues
  • High percentage may indicate labor-intensive operations