Labour turnover refers to the rate at which employees leave an organization over a given period of time. It is a metric used to measure employee retention and is often divided into different types, including voluntary and involuntary turnover, and functional and dysfunctional turnover. The formula for calculating labour turnover is the number of employees leaving over a period divided by the average number of employees employed during the same period, multiplied by 100.

High labour turnover rates can be a cause for concern as they can have detrimental effects on a business. Some common causes of labour turnover include employee dissatisfaction, negative company culture, organizational downsizing, and employee relocation.

It is important for businesses to keep track of their labour turnover rate and retention rate to continuously improve these rates and keep top talent working for their organization for years to come. Measuring employee retention and labour turnover can also help businesses save time and resources.