Worked Examples · Example 10
Q.What is Labour Turnover? State its main causes and remedial measures.
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Start your 14-day free trial to unlock the full solution →Labour Turnover is the rate of change in the workforce of an organisation during a period — the extent to which workers leave and are replaced. A high turnover means workers leave and are replaced frequently (costly and disruptive); a low turnover means a stable workforce. It is expressed as a percentage.
Causes are grouped as:
- Avoidable (the organisation can prevent these): low wages, poor working conditions, lack of promotion/growth, bad relations with supervisors, unfair treatment, lack of job security, absence of welfare facilities.
- Unavoidable (largely outside the organisation's control): retirement, death, illness/disability, marriage/relocation, moving for family reasons, dismissal for genuine misconduct/inefficiency, betterment elsewhere.
Effects: costs of recruitment and training replacements, lost output during the learning period, higher spoilage and accidents from inexperienced workers, extra wear and tear on machinery, and lower morale.
Remedial measures (to reduce turnover):
- Pay fair wages and provide good working conditions and welfare facilities.
- Introduce incentive and bonus schemes.
- Provide job security and clear promotion/career prospects. …
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