Labour turnover rate is a business metric that measures the rate at which employers replace their workforce. It’s calculated as a percentage of total employees who leave an organisation divided by average total employees. A high labour turnover rate indicates that a lot of workers are leaving an organisation in a given period, which can be costly for businesses. Labour turnover can help employers evaluate the effectiveness of recruitment and retention strategies, identify potential skill gaps, and gain insight into employee engagement. Understanding your labour turnover rate can offer valuable insights and help you to attract, nurture and retain the best talent.