Analysing Human Resource Performance

Labour Turnover and Retention Rates

Labour Turnover - The proportion of employees leaving a business over a period of time - usually a year. CALCULATION - number of employees leaving over a period / average number of employees over a period X 100.

If the labour turnover is high this is bad for the business. This means they are losing lots of employees which means they are having to invest more cash into recruitment and training. Reasons for why the employees leave could be due to the nature of the job or the leadership style. However, if the labour turnover is too low this means the business may not be getting enough fresh ideas in which can lead to a competitive disadvantage. An example of a business like this is HMV.

Retention Rates - The proportion of employees with…