Labour turnover
Labour turnover is the percentage of employees who leave an organization over a specific period, usually a year.
The formula for labour turnover is:
$$\text{Labour Turnover (%)} = \left(\frac{\text{Number of Employees Leaving}}{\text{Average Number of Employees}}\right) \times 100$$
Consider a company that has an average of 2,000 employees and 190 leave during the year.
Solution
The labour turnover is calculated as follows:
$$\frac{190}{2000} \times 100 = 9.5\%$$
While some turnover is normal, excessively high rates can signal deeper problems, such as poor management or low job satisfaction.
A call center with high turnover might find that employees leave because their roles are repetitive and lack opportunities for advancement.
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