Labour turnover may be defined as the rate at which employees come or leave a business organization during a definite period. commonly a month. The main cause of labour turnover in any country is dissatisfaction with the working condition, lack of promotion opportunities, sickness and old age. Labour turnover is measured by accession, seperation, compromise and Replacement formula.

How to reduce Labour turnover: Following actions may be taken to reduce labour turnover

Pay problems: By increasing pay levels to meet competition; Improving pay structures to remove inequalities; altering pay systems to reduce excessive fluctuations; and by introducing procedures for relating reward more explicitly to effort or performance.

Employees leaving to further their career: By providing better career opportunities and ensuring that employees are aware of them; Extending opportunities for training; Adopting and implementing promotions from within policies and introducing more systematic and suitable promotion procedures.

Employees leaving due to conflict: By introducing more effective procedures for consultation, participation and handling grievances; improving communications by such means as briefing groups; using conflict resolution and team building techniques of organization development; educating and training management in approaches to improving their relationships with employees.

The induction crisis: By improving recruitment and selection procedures to ensure that job requirements are specified accurately and that people who are selected fit the specification; ensuring that candidates are given realistic picture of the job; and by developing better induction and initial training programmes.

Shortage of Labour: By improving recruitment, selection and training of the required people and by introducing better methods of planning and scheduling work to smooth out peak loads.

Changes in working requirements: By ensuring that selection and promotion procedures match the capacities of individuals to meet the demands of the work; adopting payments by result systems to ensure that individuals are not unduly penalized when they are only engaged on short terms; and by providing adequate training or adjustment periods when working conditions change.

Losses of unstable recruits: Taking more care to avoid recruiting unstable individuals by analyzing the characteristics of applicants which are likely to cause instability and using this analysis to screen recruits.