2.4.3 (HL)—Labour turnover

Labour turnover measures people leaving and being replaced. A high rate can raise recruitment and training cost, but its meaning depends on who leaves, why, and whether vacancies are filled.

Separate avoidable from unavoidable departures and examine pay, management, workload, progression, location and labour-market alternatives before choosing a response.

If experienced technicians leave after a shift change, exit evidence may point to scheduling rather than a general motivation problem.

A lower turnover rate is not automatically better: retaining poor-fit staff can also reduce performance.

Calculate $\text{labour turnover rate}=\frac{\text{number of employees leaving during the period}}{\text{average number employed during the period}}\times100$. If 18 employees leave and average employment is 240, turnover is $18/240\times100=7.5\%$. Compare the same period and workforce group over time or with a relevant benchmark, then investigate who left and why: the percentage alone cannot show whether departures were avoidable or harmful.