Discuss Labour turnover

Discuss Labour turnover

Answers

- Turnover means employees leaving the organization for several reasons e.g. redundancy, greener pastures etc. The replacement of labour will be cost to the firm. Labour turnover in an organization is expressed as a percentage referred to as labour turnover rate. It is computed as


- The higher the turnover rate the higher the cost and vice versa. High labour turnover will have adverse effects in a number of areas which involves:
1. Recruitment and replacement of staff which involves:
- Advertising for vaccines.
- Interviewing and selection of staff.
- Placement in a appropriate job positions.

2. Training of new staff which involves additional cost both as a direct result of training and as consequence of a relative inefficiency of the work during the training period. This is caused by:-
- Training meaning that the employee will have to attend a course, enroll for correspondence course, attend day classes at college or training centre.
- During training employees may require on the job training where a skilled employee supervises their progress. This means that the company is paying the skilled supervision for non productive roles.
- Partly trained employee will be less efficient than fully trained employees and thus extra cost will be incurred by the company such as increased scrap unit, reduction in output rate and need for overtime working to meet output targets.

3. High turnover rate may necessity the use of high grade labour on lower grade work until replacements is made. The company will probably have to pay the high grade employees their normal rate of pay.

4. They can be an overall lowering of morale as a result of high labour turnover to the remaining employees and hence low production.

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Wilfykil answered the question on August 5, 2019 at 12:58

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