Labour Turnover

What is Labour Turnover?

The rate at which employees leave a business and have to be replaced over a stated period, usually expressed as the number of employees leaving as a percentage of the average number employed. High labour turnover raises recruitment, selection and training costs, reduces average experience in the workforce, and can lower quality and productivity while replacements are learning the job.

This definition is part of the People in Business chapter in Cambridge O Level Business Studies.

Concepts related to Labour Turnover

• absenteeism
• recruitment cost
• retention