How to calculate labour turnover rate?

Question: How to calculate labour turnover in Garment Industry?


The original term is employee turnover rate. In garment industry we refer it labour turnover rate as because it is a labour intensive industry and management looks into turnover rate of workers in a month or year (accounting period). Employee turnover rate is calculated considering all employees in a organisation. For labour turnover rate calculation only workers are taken in consideration. Even to calculate operator turnover rate only sewing operators are considered in calculation. 

To find labour turnover rate of your factory 
1. Find number of total workers who left or has been terminated from the organisation in a year (last 12 months).

2. Find no. of workers worked (employment) each month in last 12 months. Add up total employment of last 12 months and divide it by 12 to find average monthly employment in the organisation.  

Formula for calculating annual labour turnover rate = (Total number of labours left the organisation/Monthly average employment) X 100 (turnover rate is presented in percentage)

For example, in a organisation total 70 workers left in last 12 months and average monthly employment of the organisation is 400. Labour turnover rate of that organisation is 17.5% [(70*100/400)].

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