ABSTRACT

This chapter presents the simple method calculating labour turnover and simple method calculating labour stability. There are principal reasons for measurement: labour turnover determines the rate of recruitment and it is an indication of the state of the external labour market. The rate of labour turnover in different departments or in different establishments can be compared. If there are many reasons for labour turnover there is one very sound reason for having a measure of stability, and that is that such a measure would be a good indication of the effects of policy change on the conditions in the external labour market. What stability means is the capacity for a firm to retain its labour force. In order for a measure to be useful, it must express this capacity over time and allow for comparisons in the same way as the labour turnover percentage.