labour turnover

labour turnover

the proportion of an organization's labour force which leaves its employment over a given period. It can be composed of retirements, deaths, dismissals, redundancy or voluntary resignation. In general labour turnover is strongly influenced by the business cycle. In a period of growth when employment opportunities are expanding, turnover will increase. A certain amount of turnover is believed to be a good thing (as well as inevitable), since it enables the labour force to be revitalized. However, a high level of turnover in an organization can indicate that pay and conditions of employment are perceived as inadequate or that the organization is badly managed.

Two basic measures of leaving rate can be used:

The wastage index is a fairly crude measure because it provides little indication of which employees are leaving. By contrast, the stability index can be used to pinpoint whether those quitting are new recruits or more established employees, and how long the duration of employment tends to be. This is important because turnover is often concentrated amongst new recruits (see INDUCTION CRISIS).

Turnover rates differ between industries. In general, those organizations with well-developed career structures have lower annual rates of turnover than those which rely heavily on the labour market to fill vacancies. See INTERNAL LABOUR MARKET JOB SATISFACTION.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

labour turnover

the proportion of a firm's labour force that leaves its employment over a given period. Labour turnover occurs as a result of retirement, voluntary resignations, redundancies, etc. In general, labour turnover is strongly influenced by the BUSINESS CYCLE, being particularly high during periods of boom, when there are plentiful job opportunities available, or periods of depression, when widespread redundancies occur.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Meanwhile, Employment increased at a slower rate during the month of July although many respondents in the textile and apparel industry highlighted that they experienced higher rate of labour turnover during the month.
Evidence of Northwood's high level of staff engagement can be found in its retention record: its labour turnover is just 6.5 per cent against a national average of 12 per cent.
Moreover, it can spread and create a toxic working environment - leading to low performance and productivity; high degrees of worker illness and absence; poor workplace relations; increased labour turnover, and so on."
The third subject included statistics about false presence, problems resulting from lack of appreciation, lack of productivity, the reasons why some employees quit their jobs, costs of labour turnover, how to help others engage in work and the importance of appreciation and compliment.
It came after the American currency climbed following the nation's job openings and labour turnover summary (JOLTS) report reaching a record high.
A true role model of the brand and an inspiring leader, Menon was previously general manager of The Ritz-Carlton, Bangalore since 2014, achieving great success in topline revenues, double digit growth in F&B, improved GOP margins, increased guest engagement and reduced labour turnover.
The poll of 1,000 employees by the Chartered Institute of Personnel and Development (CIPD), also revealed that over half say their organisations do not calculate the cost of staff leaving even though labour turnover is at its highest for a decade.
(9) Singapore, Ministry of Manpower, Labour Turnover Concepts and Definitions, Labour-Turnover- Concepts-and-Definitions.aspx?Flag=90&TRMID=669&PageNo=1.
We are seeing a pick up in reported skills shortages and the emergence of defensive pay awards to keep people in their existing jobs and a pick up in labour turnover."
If you take a closer look at companies with high labour turnover, for instance the call centre industry, these service awards are presented after a period of six to 12 months.

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