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Question
Define labour turnover.
Answer
Labour turnover is the rate at which employees leave a business over a period of time, usually expressed as a percentage.
💡 Hint
Leavers rate.
Question
Labour turnover is expressed as a ______.
Answer
Percentage.
💡 Hint
Rate as %.
Question
Give one benefit of low labour turnover.
Answer
Lower recruitment and training costs because fewer employees need replacing.
💡 Hint
Fewer hires needed.
Question
Why can low labour turnover improve productivity?
Answer
Long-serving employees are experienced, make fewer mistakes and work more efficiently.
💡 Hint
Experience = efficiency.
Question
State the labour turnover formula.
Answer
(Number of leavers during the period / Average number of employees) x 100.
💡 Hint
Leavers / average x100.
Question
Turnover formula uses leavers divided by ______ number of employees.
Answer
Average.
💡 Hint
Use average staff.
Question
Give one drawback of low labour turnover.
Answer
The business may lack new ideas and become resistant to change.
💡 Hint
Stale culture risk.
Question
What is a push factor in labour turnover?
Answer
A push factor is a problem at the current job that drives employees away (e.g. low pay, poor conditions, poor management).
💡 Hint
Push = drives away.
Question
Push factors ______ employees away from the business.
Answer
Drive.
💡 Hint
Push = drive.
Question
What is a pull factor in labour turnover?
Answer
A pull factor is an attraction elsewhere that encourages employees to leave (e.g. higher pay, better role, relocation).
💡 Hint
Pull = attracts away.
Question
Pull factors ______ employees to other jobs.
Answer
Attract.
💡 Hint
Pull = attract.
Question
Give one cost of high labour turnover.
Answer
Increased recruitment, selection and training costs from repeatedly hiring replacements.
💡 Hint
Hiring is expensive.
Question
Why can high labour turnover reduce service quality?
Answer
New employees take time to learn standards, so mistakes increase and customer experience can worsen.
💡 Hint
Learning curve.
Question
Why do businesses monitor labour turnover?
Answer
High turnover increases recruitment and training costs and can reduce productivity, quality and customer service.
💡 Hint
Turnover has costs.
Question
Exam tip: What should you do in labour turnover impact questions?
Answer
Give both positive and negative impacts, explain why, and apply to the case business.
💡 Hint
Both sides + case.
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Full study notes for Labour turnover
Topic 2.1 hub
Introduction to human resource management
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