3 Important methods to calculate Labour Turnover | Formulae
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Methods of Calculating Labour Turnover
The following are the main methods of measuring labour turnover.
1. Calculating Labour Turnover by Separation Method
Under the Separation Method, the relationship between the number of workers separated or left from the organization and average number of workers of the organization in the period is expressed in terms of percentage.
A worker may be left or separated from the organization due to surplus workers, poor working conditions and wages, less chance for promotion and the like.
The following formula is used to measure the labour turnover by Separation method.
Labour Turnover = No. of workers left or separated during a period / Average number of workers on role during that period x 100
Average No.of. Workers = (No. of workers at the beginning of the period + No. of workers at the end of the period) / 2
2. Calculating Labour Turnover by Replacement Method
There is no need of replacement if the surplus workers left from the organization. The workers whose services are required by the organization are to be replaced by new appointments if they leave.
Hence, the relationship between the number of workers replaced and average number of workers of the organization in a period is expressed in terms of percentage under the replacement method.
Generally, the replacement of labour is followed by the organization if skilled labourers are left from the organization. The following formula is used to measure the labour turnover by replacement method.
Labour Turnover = No. of workers replaced during a period / Average number of workers on role during that period x 100
3. Calculating Labour Turnover by Flux Method
This is the combination of separation method and replacement method. Both separation and replacement are taken into consideration to calculate labour turnover in Flux method.
Hence, the relationship between both separation and replacement of labour force of the organization in a period and average number of workers on roll during that period is expressed in terms of percentage. The following formula is used to calculate labour turnover by flux method.
Labour Turnover = (No.of workers separated in a period + No. of workers replaced in the same period) / Average number of workers on role during that period x100
