Productivity improvement through reduced labour turnover

Labour turnover has both direct and hidden costs to the organization since it represents wastage of its human resources. Even in times of contraction, undue reliance on ‘natural wastage’ can lower morale, distort age profiles, and build up problems for the future. A strategic approach to its control must rest on an accurate diagnosis and must go beyond the improvement of particular personnel practices into a reappraisal of the company's total approach to its employees. It can provide the key to a new approach to planning and productivity.