Labour Turnover
In every organisation, some workers leave their employment, and new workers join in place of
those leaving. This change in the workforce is known as labour turnover.
Measurement of Labour Turnover:
The labour turnover is expressed in a percentage.
1. Separation Method (only those who left the organization)
Labour turnover rate = No. of workers left during the period / Average no. of
workers during the period * 100
Average no. of workers = No. of workers in the beginning + No. of workers at the end / 2
2. Replacement Method: (only those new workers who have joined in place of those who
have left the job)
Labour turnover rate = No. of workers replaced during the period / Average No.
of workers during the period * 100
3. Flux Method (The total change in the composition of labour force due to separation &
replacement of workers)
Labour Turnover Rate = No. of workers left + No. of workers replaced / Average
No. of workers * 100
Sums
1. Calculate the labour turnover rate using separation, Replacement and flux methods.
No of workers on the pay roll:
At the beginning of the month – 900
At the end of the month – 1,100
During the month, 10 workers left, 40 persons were discharged, and 150 workers
were recruited. Of these, 25 workers were recruited in the vacancies of those
leaving, while the rest were engaged in an expansion scheme.
2. No. of workers on 1st April – 2,350
No. of workers on 30th April – 2,850
No. of workers who quit on their own – 200
No. of workers who availed of Goldern handshake opportunity – 100
No. of workers employed during the month of April, including those employed due
to expansion – 800
3. Calculate Labour turnover by replacement & flux methods.
No. of workers at the beginning of the year – 3,800
No. of workers at the end of the year – 4,200
During the year, 40 workers leave, while 160 workers are discharged.
600 workers are recruited during the year, of these 150 workers are recruited
because of leavers and rest are engaged by an expansion scheme.
4. Calculate Labour turnover by replacement, separation & flux methods.
No of workers on the pay roll:
At the beginning of the month – 500
At the end of the month – 600
During the month 5 workers left, 20 persons were discharged, and 75 workers were
recruited. Of these, 10 workers were recruited in the vacancies of those leaving,
while the rest were engaged for an expansion scheme.
5. X company has computed labour turnover rates for the month March as 10%, 5%
and 3% respectively. Under flux method, replacement method and separation
method.
The number of workers replaced during the month is 30. Find out No. of workers
joined and left the organization.
6. No. of workers at the beginning of the year – 8,000
No. of workers at the end of the year – 9,600
No. of workers left the company during the year – 500
No. of workers discharged during the year – 100
No. of workers replaced due to left & discharged – 700
Additional workers employed for expansion scheme – 1,500
Calculate labour turnover ratio (Separation, Replacement & flux)
