Labor turnover

Question 1

Why do businesses loose staff ?

Answer 1

Retirement, maternity, death, long-term illness, unsuitability for job, closure of specific job location, dismissal, changes in workforce capacity, seasonal changes in demand

Question 1

Define the term labor turnover

Answer 1

The number of workers that leave an organisation based on resign (employees choose to leave their job), attrition ( staff leaving due to natural reasons e.g retirements) and dismissal ( company tells employees to leave)

Question 2

Higher labor turnover is a result of/leads to …

Answer 2

Decreased employee satisfaction, increased recruitment costs, decreased productivity

Question 3

Give me different HR strategies’ to reduce labour turnover

Answer 3

1. Financial incentives (perks, salary rise)
2. Non-financial incentives (Promotion, more input in decision-making
   3.Improved recruitment process (more suitable employees are found in the first place)
3. More flexible working practices implemented
   5.Conduct research, to understand why employees leave

Question 4

Advantages of high labour turnover

Answer 4

New employees, so new ideas and specialist knowledge is implemented into the business. There is also less need for existing lower skilled employees to be trained

Question 5

What is the formula for labour turnover ?

Answer 5

Number of employees left the business/number of workers employed by the business X 100

Question 6

What factors influence staff productivity ?

Answer 6

1.Equipment available to business
2.Individuals skills, motivation and ability
3.Reliability of other staff and stakeholders

Question 7

How to improve staff productivity ?

Answer 7

If the business measures performance of employees through setting targets, streamlining production processes, investing in more technology and employee training