How does an increase in labour turnover and absenteeism rates affect most businesses?

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Need help mainly because this question is an assess (evaluation)L4 question.

Posted Thu 19th April, 2012 @ 20:13 by nadine powell

2 Answers

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labour turnover - existing employees will be demotivated - output will decrease.

business will get a bad reputation because of high turnover, leading to bad image, will could lead to drop in sales, lower profits, bad cash flow.

absenteeism - if employees dont turn up, output will decrease. The business could run out of stock, and struggle to fill customer orders, meaning customers will go to competitors. Market share will drop and the business will struggle to compete with rival companies.

hope this helps!

Answered Tue 24th April, 2012 @ 13:54 by Callum
  • 0 votes

labour turnover - existing employees will be demotivated - output will decrease.

business will get a bad reputation because of high turnover, leading to bad image, will could lead to drop in sales, lower profits, bad cash flow.

absenteeism - if employees dont turn up, output will decrease. The business could run out of stock, and struggle to fill customer orders, meaning customers will go to competitors. Market share will drop and the business will struggle to compete with rival companies.

hope this helps!

Answered Tue 24th April, 2012 @ 13:54 by Callum