# Labour Turnover Rates
## What is Labour Turnover?
Labour Turnover refers to the change in the workforce composition during a period — both employees who joined and employees who left. It is a measure of workforce instability and is expressed as a rate (percentage) per period.
## Workforce Identity
The basic balance is:
$$\text{Employees at start} + \text{Employees joined} - \text{Employees separated} = \text{Employees at end}$$
## Average Workforce (denominator for all rates)
$$\text{Average Employees} = \frac{\text{Employees at start} + \text{Employees at end}}{2}$$
Example — Start = 900, End = 1,300 ⇒ Average = (900 + 1300) ÷ 2 = 1,100.
## Two Categories of Joiners
| Term | Meaning |
|---|---|
| New Joinee (Accession) | Hired to fill a newly created post — e.g., a new branch is opened, fresh strength is added |
| Replacement | Hired to fill the seat of someone who has separated from an existing post |
## Two Categories of Leavers (Separation)
Separation includes employees who: resigned, were terminated, or were removed.
## Methods of Computing Labour Turnover Rate
All methods use the same denominator (Average workforce) and multiply by 100 to express as a percentage.
### (i) Separation Method
$$\frac{\text{No. of Separations}}{\text{Average Workers}} \times 100$$
### (ii) Replacement Method
$$\frac{\text{No. of Replacements}}{\text{Average Workers}} \times 100$$
### (iii) Flux Method
Two accepted forms:
$$\frac{\text{Separations} + \text{Replacements}}{\text{Average Workers}} \times 100$$
$$\text{OR}$$
$$\frac{\text{Separations} + \text{Replacements} + \text{New Joinees}}{\text{Average Workers}} \times 100$$
### (iv) Accession Method
Two accepted forms:
$$\frac{\text{New Joinees}}{\text{Average Workers}} \times 100$$
$$\text{OR}$$
$$\frac{\text{New Joinees} + \text{Replacements}}{\text{Average Workers}} \times 100$$
### (v) Equivalent Annual Labour Turnover Rate
When turnover is computed for a period shorter than a year, convert it to an annual equivalent:
$$\text{Equivalent Annual T/O} = \frac{\text{Turnover Rate for the Period}}{\text{No. of days in the period}} \times 365$$
## Critical Rule for Splitting Joiners
If the question gives both new joinees and replacements mixed in total hires, distinguish them by this priority:
1. First — fill the chairs/seats vacated by separations → these are Replacements.
2. Second — anything left over after replacements are accounted for is New Joinees.