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Labour turnover

Labor turnover refers to the rate at which employees leave an organization and are replaced by new employees. It's an important metric for businesses to track because high turnover can be costly and disruptive, and it can indicate underlying problems in the workplace. There are several ways to measure labor turnover, including:

  • The separation rate: the number of employees who leave an organization over a given period, divided by the average number of employees during that period.
  • The replacement rate: the number of new hires over a given period, divided by the average number of employees during that period.
  • The retention rate: the percentage of employees who stay with an organization for a certain period of time, typically one year.

Measuring labor turnover is important for organizations to understand their hiring and retention patterns, and to identify any underlying issues that may be causing turnover.

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