Labour turnover staff retention Labour turnover staff retention
Labour turnover & staff retention
Labour turnover & staff retention Labour turnover refers to the proportion of a workforce that leave during a period of time (usually one year) Labour turnover = number of staff leaving during the period x 100 average number of staff Staff retention refers to the ability of a firm to keep its workers.
Reasons for high labour turnover Poor leadership and management leading to low morale Lack of training and development Few opportunities for career progression Ineffective recruitment and selection procedures leading to inappropriate workers being appointed Poor working conditions Uncompetitive wage levels
Drawbacks of high labour turnover The disadvantages of having a large proportion of staff leaving each year include: The cost of recruiting replacement workers The cost of training the new workers Loss of productivity whilst replacements are found Loss of experienced workers Negative impact on reputation
Benefits of labour turnover There can, however, be some benefits of have a degree of labour turnover: Fresh ideas and enthusiasm can be injected into a firm by new recruits Workers with specific skills can be recruited
Improving staff retention Financial methods of motivation e. g. Bonuses Profit share Fringe benefits Non financial methods of motivation e. g. Empowerment Training and development Promotion opportunities Improved recruitment and selection procedures
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