{"id":13908,"date":"2022-01-09T15:14:29","date_gmt":"2022-01-09T09:44:29","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=13908"},"modified":"2024-12-27T15:05:12","modified_gmt":"2024-12-27T09:35:12","slug":"measurement-of-labour-turnover","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/","title":{"rendered":"Measurement of Labour Turnover (5 Methods) | 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-69e4aa5fbb8f5\" 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-69e4aa5fbb8f5\"  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\/measurement-of-labour-turnover\/#Measurement_of_Labour_Turnover\" >Measurement of Labour Turnover<\/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\/measurement-of-labour-turnover\/#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\/measurement-of-labour-turnover\/#Method_of_Measurement_of_Labour_Turnover\" >Method of Measurement of Labour Turnover<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/#1_Separation_Method\" >1) Separation Method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/#2_Replacement_Method\" >2) Replacement Method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/#3_Basis_of_Accession_Method\" >3) Basis of Accession Method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/#4_Avoidable_Separation_Method\" >4) Avoidable Separation Method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/measurement-of-labour-turnover\/#5_Flux_Method\" >5) Flux Method<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Measurement_of_Labour_Turnover\"><\/span><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Measurement of Labour Turnover<\/mark><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-1024x576.jpg\" alt=\"Measurement of Labour Turnover\" class=\"wp-image-13936 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/01\/Measurement-of-Labour-Turnover.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Measurement of Labour Turnover<\/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 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<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 method of measuring the labour Turnover adopted by the firm depends upon the conception of Management and the definition of Labour turnover. Once the organization has adopted a particular method, then it should be consistently followed which enable comparisons of data from year to year.<\/p>\n\n\n\n<p><strong>Following are the methods of Labour Turnover adopted:<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Separation_Method\"><\/span><strong>1) Separation Method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In this method, Labour turnover is considered as a relationship between total number of separations for a given period and the average number of workers on the payroll during the period. <br>Therefore, <br><strong>Labour Turnover Rate <br>= Number of separations in a period \/Average Number of workers during the period x 100<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Replacement_Method\"><\/span><strong>2) Replacement Method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This method is also known as the Net Turnover Method. Under this method, labour turnover is measured\/considered as a relationship between the actual replacement of labour during the period and average number of workers during the period.<br><br><strong>Labour Turnover Rate <\/strong><br><strong>= Number of Workers Replace in a Period\/Average Number of workers in a Period \u00d7100<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Basis_of_Accession_Method\"><\/span><strong>3) Basis of Accession Method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Under this method, the experts view is considered logically to measure the labour turnover. It is a relationship between accessions and the average number of workers during the period.It is calculated as follows:<br><strong>Labour Turnover Rate = Assessions \/Average number of workers during the period x 100<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Avoidable_Separation_Method\"><\/span><strong>4) Avoidable Separation Method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>There is an argument made that in any organization certain amount of labour turnover is inevitable. The percentage of separation can be high due to some unavoidable circumstance or reasons. Eg. Sickness, old age, death, family conditions, seasonal and cyclical conditions or fluctuations in the business.<\/p>\n\n\n\n<p>Therefore, separation should be avoidable and unavoidable. The Labour turnover is calculated by considering the relation of avoidable separation and average working force (workers) during the period.<br><strong>Labour Turnover Rate<br>=Avoidable Separation in the period\/Average working force workers during the period\u00d7100<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Flux_Method\"><\/span><strong>5) Flux Method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Under this method, the separations and replacements for the period are considered for the calculation of Labour turnover. It is the relationship between the sum of separations and replacement during the period and Average Number of Workers during the period.<br><strong>Labour Turnover Rate<br>= Separation + Replacement during the period\/Average Number of Works during the period\u00d7100<\/strong><\/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":13936,"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":[4429],"class_list":["post-13908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-degree-college","category-misc","tag-measurement-of-labour-turnover"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/13908","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=13908"}],"version-history":[{"count":2,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/13908\/revisions"}],"predecessor-version":[{"id":35923,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/13908\/revisions\/35923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/13936"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=13908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=13908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=13908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}