Labour Turnover

• How is labor turnover related to staff retention?

  Labor turnover measures staff leaving; retention measures keeping staff
• What does labor turnover measure?

  Percentage of staff who leave during a period
• What is labor productivity?

  Extent of output per employee in a business
• What does absenteeism measure?

  Extent of staff absent from work
• What are some reasons staff may leave a business?

  Unsuitability, redundancy, retirement, personal circumstances
• Why is employee retention important for businesses?

  It reduces recruitment and training costs
• How is labor turnover calculated?

  Number of employees leaving divided by average number employed
• If 15 employees leave from an average of 80, what is the labor turnover percentage?

  $18.75\%$
• What does a high labor turnover percentage indicate?

  Potential issues with employee retention or satisfaction
• What are some costs associated with high staff turnover?

  Recruitment, training, and productivity disruption costs
• How can high staff turnover affect customer service?

  New staff may lack training, impacting service quality
• In which sectors is staff turnover typically high?

  Leisure and hotel sectors
• How do economic conditions affect staff turnover?

  Downturns decrease turnover; upturns increase turnover
• What is often associated with low staff turnover?

  High employee loyalty and satisfaction
• What is a key strategy to improve staff turnover?

  Recruit the right people initially
• What are some ways to retain key staff?

  Competitive pay, job design, and rewards for loyalty
• What are the key factors affecting labor turnover?

  • Employee suitability
  • Economic conditions
  • Job satisfaction and promotion opportunities
  • Seasonal demand in certain sectors
• What are the consequences of high labor turnover for a business?

  • Increased recruitment and training costs
  • Disruption of productivity and operations
  • Potential decline in customer service quality
• What strategies can businesses implement to reduce labor turnover?

  • Effective recruitment processes
  • Competitive compensation and benefits
  • Job enrichment and career development opportunities
  • Recognition and rewards for employee loyalty