Plan workforce needs and calculate labour turnover
Use workforce planning and labour-turnover evidence to anticipate staffing needs and assess the implications of retention.
Cambridge International AS & A Level Business 9609, 2026–2028 syllabus and 2029 syllabus, section 2.1.2. Cambridge states that the 2029 syllabus has no significant changes affecting teaching. This lesson maps only its named section; other sections and full paper practice remain separate. Written practice is self-checked
Before you begin
- No previous business course is assumed. Use the lesson's definitions before applying them to the business context.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which figures are needed for the basic labour-turnover rate?
What you will learn
- Explain the role of workforce planning
- Calculate labour turnover using the stated data
- Evaluate implications of high or low turnover
A workforce plan anticipates people and skill needs
A workforce plan estimates the number and type of workers needed, when they are needed and how the business may fill gaps. It can consider growth, retirement, seasonality, technology and expected turnover.
Labour turnover measures the proportion of the average workforce leaving during a period: number leaving ÷ average number employed × 100. State the period and use the supplied or calculated average workforce consistently.
Turnover has costs and possible benefits
High turnover may create recruitment and training costs, lost experience, disrupted service and lower morale. Some turnover can also bring skills or make room for change.
Low turnover can retain knowledge and reduce recruitment costs, but may limit new skills or indicate that performance problems are not being addressed. Interpret the rate alongside roles, reasons for leaving, workload and business outcomes.
Pause and explain
If 9 workers leave from an average workforce of 60, what is labour turnover?
Worked example
A firm averages 80 employees and 12 leave during the year. Calculate its labour-turnover rate.
Show the worked solution
- Use the number leaving as the numerator.
- Divide 12 by average employment 80.
- Multiply by 100 to convert to a percentage.
Answer Labour turnover = 12 ÷ 80 × 100 = 15% for the year.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A café averages 45 employees and 9 leave in a year. Calculate turnover and give one follow-up question for a manager.
Give me a hint
Use leavers ÷ average workforce × 100.
Compare my reasoning
- Divide 9 by 45.
- Multiply by 100.
- Ask why workers left or which roles had the highest rate.
Turnover is 9 ÷ 45 × 100 = 20%. The manager should investigate reasons and whether departures cluster in particular roles or seasons.
Look for these in your work
- Formula applied
- Percentage correct
- Rate interpreted with context
A call centre reduces turnover from 30% to 18%, but customer complaints rise. Explain why the turnover result alone is insufficient.
Give me a hint
Consider capability, service quality, workforce experience and the reasons for both changes.
Compare my reasoning
- Lower turnover may retain more workers.
- Complaints may reflect training, workload or process changes.
- Use more than one measure to judge HR performance.
The lower rate may reduce recruitment costs and preserve experience, but higher complaints suggest service has not necessarily improved. The business should check training, workload and customer data before judging the outcome.
Look for these in your work
- Turnover effect recognised
- Service outcome considered
- Multiple measures recommended
A retailer faces seasonal demand and expects more temporary workers to leave after the holiday period. Explain how workforce planning can help.
Give me a hint
Plan for timing, skills, recruitment and handover rather than treating each departure as unexpected.
Compare my reasoning
- Forecast peak staffing and the likely end of temporary contracts.
- Schedule recruitment and induction before the peak.
- Plan handover and compare forecast with actual demand and departures.
A workforce plan can schedule seasonal recruitment and induction before demand peaks and prepare handovers when temporary contracts end. The retailer should compare actual sales and staffing with forecasts because seasonal demand can differ.
Look for these in your work
- Timing planned
- Training or handover included
- Forecast uncertainty acknowledged
Common mistakes
- Using total hires instead of workers leaving
- Forgetting to multiply the ratio by 100
- Assuming a low turnover rate is always good
What can you explain now?
Which figures are needed for the basic labour-turnover rate?
Compare with the explanation
Workers leaving and average number employed
Turnover compares leavers with the average workforce.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
What does labour turnover measure, and why should it be interpreted alongside other evidence?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.