{"id":12710,"date":"2021-12-12T17:56:23","date_gmt":"2021-12-12T12:26:23","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=12710"},"modified":"2024-12-26T19:57:31","modified_gmt":"2024-12-26T14:27:31","slug":"labour-turnover-meaning","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/labour-turnover-meaning\/","title":{"rendered":"Labour Turnover Meaning | Free Cost Accounting Articles"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e3d23c86a26\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e3d23c86a26\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/labour-turnover-meaning\/#Labour_Turnover_Meaning\" >Labour Turnover Meaning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/labour-turnover-meaning\/#Meaning\" >Meaning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/labour-turnover-meaning\/#Cost_of_Labour_Turnover\" >Cost of Labour Turnover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/labour-turnover-meaning\/#Method_of_Measurement_of_Labour_Turnover\" >Method of Measurement of Labour Turnover<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Labour_Turnover_Meaning\"><\/span><span class=\"has-inline-color has-black-color\">Labour Turnover Meaning<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-1024x576.jpg\" alt=\"Labour Turnover Meaning\" class=\"wp-image-12716 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;width:720px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Labour-Turnover-Meaning.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><figcaption class=\"wp-element-caption\">Labour Turnover Meaning<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning\"><\/span><strong>Meaning<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Labour turnover in an organization is the rate of exchange in the composition of labour force during a specified period measured against a suitable index. It has a perpetual existence. The working force in an organization does not remain constant. Some of the existing staff may leave, new people join the organization. This phenomenon is known as <strong>Labour Turnover.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_Labour_Turnover\"><\/span><strong>Cost of Labour Turnover<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are two types of Labour cost that leads to high cost and lower productivity:<\/p>\n\n\n\n<p><strong>A) Preventive Cost<\/strong><\/p>\n\n\n\n<p>The preventive cost which includes the cost incurred to keep labour turnover at a low level.For example cost of medical services, welfare schemes and pension schemes, etc. <\/p>\n\n\n\n<p><strong>i) Personal administrative cost:<\/strong><\/p>\n\n\n\n<p>The firms have a personal administrative department which is entrusted with recruitment, trading and maintaining good relationship with the labour force i.e. between firms and employees.<\/p>\n\n\n\n<p><strong>ii) Medical Services:<\/strong><\/p>\n\n\n\n<p>The firms provided preventive and medical services to the employees and their families. In fact, the employees prefer a firm providing free medical and other services to the employees and their families. It means healthy employees are the assets of the firms who enhance the productivity of the firms.<\/p>\n\n\n\n<p><strong>iii) Welfare Services:<\/strong><\/p>\n\n\n\n<p>The firm provides welfare services to the employees and includes expenditure on labour welfare activities. e g. sport canteens, houses, transport, education facilities, etc.<\/p>\n\n\n\n<p><strong>iv) Miscellaneous Schemes:<\/strong><\/p>\n\n\n\n<p>The firms normally think for the employee&#8217;s future. Therefore firms provide pension scheme, good scales, bonus, provident fund schemes etc.<\/p>\n\n\n\n<p><strong>B) Replacement Cost:<\/strong><\/p>\n\n\n\n<p>Replacement Costs are the costs that arise due to high labour turnover. It refers to those costs that are associated with replacement. These costs are incurred for recruitment, training and absorption of new workers. If the work is new, it results in losses, wastages and lower productivity due to inefficiency and lack of experience to new workers. It means a company will incur very high replacement costs if labour turnover is high.<\/p>\n\n\n\n<ul style=\"color:#f70505\" class=\"wp-block-list has-text-color\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/fifo-full-form\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/fifo-full-form\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-red-color\">First in First out Method (FIFO)<\/span><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/lifo-meaning\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/lifo-meaning\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-red-color\">Last in First out Method (LIFO)<\/span><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/simple-average-method\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/simple-average-method\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-red-color\">Simple Average Method<\/span><\/a><\/li>\n\n\n\n<li><span class=\"has-inline-color has-vivid-red-color\"><a href=\"https:\/\/youtu.be\/9Ct9NS3qdEc\" data-type=\"URL\" data-id=\"https:\/\/youtu.be\/9Ct9NS3qdEc\" target=\"_blank\" rel=\"noreferrer noopener\">Weighted Average Method<\/a><\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Method_of_Measurement_of_Labour_Turnover\"><\/span><strong><strong><strong>Method of Measurement of Labour Turnover<\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are different methods for the measurement of Labour turnover. The methodof measuring theLabour Turnover adopted by the firmdepends upon the conception of Management and the definition of Labour turnover. Once the organization has adopted particular method, then it should be consistently followed which<br>enable comparisons of data from the year to year.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is Cost Accounting?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Cost.<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Costing<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Meaning of Cost Accounting<\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":12716,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7,1],"tags":[4143],"class_list":["post-12710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-degree-college","category-misc","tag-employee-turnover-meaning"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=12710"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12710\/revisions"}],"predecessor-version":[{"id":35869,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12710\/revisions\/35869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/12716"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=12710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=12710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=12710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}