Labour turnover

What is labour turnover

The percentage of staff who leave during a particular period

what is staff retention

the percentage of staff who stay in the business

Name three reasons businesses lose staff

retirement, maternity, unsuitability

Why is managing labour turnover important

To ensure business success and retain employees

Define employee retention

the ability of a business to convince employees to remain

what is the formula for labour turnover

(employees leaving / average employed) x 100

What is the formula for labour turnover

(Employees leaving / average employed) x 100

What are the negatives of high staff turnover

• Higher recruitment and training costs

• Increased pressure on remaining staff

• Disruption to productivity

• Harder to maintain quality and service standards

Name factors that affect staff turnover

• Type of business (e.g., seasonal or temporary staff)

• Pay and rewards

• Working conditions

• Promotion opportunities

• Competitor actions

• Quality of communication

How do economic conditions affect staff turnover in a downturn?

Fewer job alternatives lead to lower turnover.

What is labour mobility?

Transferability of staff skills and availability of other jobs.

How can businesses improve staff turnover?

• Effective recruitment and training

• Provide competitive pay and incentives

• Job enrichment

• Reward staff loyalty (e.g., service awards, extra holidays)