Measurement of labour turnover
What is labor turnover and why is it measured?
Labor turnover, also known as employee turnover or staff turnover, refers to the rate at which employees leave an organization and are replaced by new hires. It is measured to assess the stability and mobility of the workforce. Measuring labor turnover helps businesses understand recruitment and retention challenges, identify underlying issues affecting employee retention, calculate the cost of turnover, evaluate the effectiveness of talent management strategies, and take proactive measures to address turnover and its impacts on the organization.
How is labor turnover calculated and expressed?
Labor turnover is calculated by dividing the number of employees who leave the organization during a specific period by the average number of employees in the same period, and then multiplying the result by 100 to express it as a percentage. The formula is: (Number of employees who left / Average number of employees) x 100. Labor turnover can be expressed as a turnover rate or percentage, indicating the proportion of employees who leave the organization within a given time frame.