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Describe one way that labour turnover can be reduced

Labour turnover is the amount of employees leaving the business in a given period, often expressed as a percentage: number of employees leaving/total employees x 100.

Reducing this figure will need the business to make sure that employees are satisfied within the current working conditions. According to Herzberg and his two factor theory, employees might become dissatisfied if the hygeine factors are not met. For example, the company policy. If a busines demonstrates autocratic leadership, with little communication between the leader and the employees, employees may feel angered as their ideas are not heard, in comparison to a democratic leadership style where there is bottom-up communciation between the employees and their leader. All employees are involved in the decision-making process, making them feel more valued by their employer. Overall, the democratic leadership makes employees more likely to stay with the company, reducing the lavour turnover figure.

Tia L. GCSE Business Studies tutor, A Level Business Studies tutor

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