Understanding Labor Turnover: How It's Calculated and Its Financial Impact

Hi friends,

I am working in a manufacturing company and would like to understand the following:

1) What is labor turnover?
2) How is labor turnover calculated?
3) What are the monetary effects of labor turnover?

Thank you.

Turnover is attrition. Please refer to one of the previous articles on citehr for the same.

Well, costs are definitely immense: advertising, hiring a new recruit, training, etc.

Surya

Types of Turnover Analysis

There are various types of turnover analysis. If you are interested, I can help you with the same.

Monetary Effects of Labor Turnover

As far as your question on costs is concerned, you may consider the following:

1. Hiring costs (including direct and indirect costs)
2. Training costs (you will have to train the recruit)
3. Costs due to productivity loss (the new recruit may not be as efficient as the old hand)
4. Costs due to quality (the new recruit will make mistakes too)

You may find this attachment on labor turnover useful.