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Labour turnover

Labour turnover measures staff movement over a period, commonly using replacements as a percentage of average employees for a replacement-based rate. Other definitions use leavers or separations, so state the convention. Average workforce is often the mean of opening and closing numbers. Recruitment, training, lost output and disruption can create costs, while some turnover may help refresh skills. Interpret the reason and role mix as well as the percentage.

Worked example

Opening workforce is 180 and closing 220, giving average 200. If 16 leavers are replaced, replacement-based turnover is 16 ÷ 200 × 100 = 8%.

Common mistake

Do not count all recruits as replacements when some fill expansion roles, or compare rates calculated using different definitions.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027