LABOUR TURNOVER

Question 1

What is labour turnover?

Answer 1

Labour Turnover refers to the number of people that move into and out of a business during a given time period (usually a year) It is an indicator of how stable a business is.
It indicates that the business has labor problems and that employees are dissatisfied.

Question 2

Labour Turnover Formula

Answer 2

The formula for labor turnover is:

(Labor Turnover Rate) = (Number of Employees Leaving / Average Number of Employees) x 100%

To calculate the labor turnover rate, you need to determine the number of employees who have left the organization over a certain period (e.g., a year), and divide that by the average number of employees during that period. You then multiply the result by 100% to get a percentage value.

For example, if a company had 50 employees at the beginning of the year and 60 employees at the end of the year, but had 10 employees leave during that time, the labor turnover rate would be:

(10 / ((50 + 60) / 2)) x 100% = 16.7%

Question 3

Features of high Labor Turnover

Answer 3

• Businesses have to frequently hire new people. It is costly and slows down productiviry because new employees aren’t as productive.
• Unmotivated workers. Interruption in business practices and routine.
• Leads to woekrs believing that they should be dissatified.