04 Analyse two effects of high labour turnover on a business. [8]

[Sir Afzal Shad]

04 Analyse two effects of high labour turnover on a business. [8]

[KN] Increased Recruitment & Training Costs for the business.
[KN] There would be a decline in the quality of the product or service offered, as new staff are often inexperienced and less skilled.


Possible Structure:
KN >> APP >> AN >> AN+
KN >> APP >> AN >> AN+

[Shuraim Arif]

(KN) One effect of high labor turnover on a business could be the dip in productivity for the business. (APP) For example, if a car manufacturing company has employees joining and leaving on a regular basis, it means that after each employee leaves, it would take time for the replacement to get used to the work environment and the task itself, leading to lower efficiency, meaning less units would be produced over a larger period of time.
(AN) This would lead to delay in customers’ orders, leading to frustration among them, eventually leading to the loss of loyal customers for the business.
(AN+) This loss of loyal customers would lead to a huge dip in sales for the business, making it harder for the company to satisfy costs, eventually leading to an overall loss and the decline of the business.
(KN) Another effect of high labor turnover could be the overall bad image of the business for employees.
(APP) For example, if an airline business has a high labor turnover, especially for pilots, it would make new pilots, looking to be hired in the airline, think twice before joining the business as the high labor turnover would lead them to think about job security and would motivators not being fulfilled by the airline.
(AN) This would mean that each time an employee of the airline leaves, it would take the business longer to find a replacement, leading to delays in operations and customer dissatisfaction.
(AN+) Eventually, after getting fed up of the delays caused by the airline, customers would switch to competitors, making it even harder for the business to remain competitive in the market, making it switch to survival to stop itself from declining.

[Abdullah Mohsin]

[KN] High labour turnover leads to a fall in production.
[APP] This means that the business will not be able to fulfill orders of customers on time.
[AN] This leads to a fall in customer satisfaction, decreasing the brand image of the business, making it less competitive in the market.
[AN+] Furthermore, a fall in productivity will lead to a rise in the average cost of production, forcing the business to increase prices to cover costs, leading to a fall in sales.

[KN] It leads to a rise in training and recruitment costs.
[APP] This is because the business will need to advertise the job offer, interview the candidates, and select an eligible candidate who might also require training.
[AN] This leads to the business focusing on hiring instead of producing, leading to potential quality drops and increased wastage.
[AN+] Furthermore, the funds spent on advertising the job and training could have been used for R&D which can help the business in figuring out current fashion trends and producing products according to the fashion which would help attract customers.

[Tuqwa]

KN:high labour turnover means the business must frequently recruit and train new employees
APP:forexample a hotel that loses many receptionists will need to spend money on advertising vacancies and training replacements.
AN:this increases business costs and reduces profitability especially if workers keep leaving after short periods.
AN+:asa result the business might have less money to invest in other areas like marketing or product improvement affecting long term growth.

KN:When many experienced employees leave new staff may be less skilled and make more mistakes.
APP:forinstance in a restaurant new waiters may take longer to serve customers or get orders wrong.
AN:this can lead to customer dissatisfaction and complaints damaging the business’s reputation.
AN+:consequently the business may lose loyal customers and face a drop in sales and revenue.

[SofiaRazaKhan]

[kn] high labour turnover increases recruitment and training costs for the business.
[app] a bakery that frequently loses staff will need to spend extra money hiring and training new bakers
[an] this can disrupt team dynamics as new employees take time to adjust. cause inconsistency and delay in daily operations and workflow. Increase the likelihood of errors in production due to inexperienced staff
[an+ over time these issues can reduce overall productivity and affect the businesss profitability.

[kn] high labour turnover can lead to a decline in the quality of the product or service offered, as new staff are often inexperienced and less skilled.
[app] In the same bakery, newly hired bakers may take longer to decorate cakes and may make errors.
[an] hhis can lead to a drop in customer satisfaction ,create inconsistency in product appearance and taste. Increases workload for experienced staff.
[an+] As a result, the bakerys reputation may suffer and long-term sales could decrease

[Ayaan Fayaaz]

KN: High labour turnover can reduce the morale of the remaining employees.
APP: For instance if many experienced workers leave a bank the remaining staff may feel overworked or worried about their own job stability.
AN: This can lower motivation and productivity as employees may feel less committed to the business.
AN+: As a result, performance may drop even further creating a negative workplace culture and increasing the chance of more employees leaving.

KN: When employees frequently change customers may not build long-term relationships with the business.
APP: For instance in a salon clients may prefer a specific stylist but constant staff changes can cause dissatisfaction.
AN: This leads to weaker customer loyalty and lower trust in the business.
AN+: Consequently, the business could lose repeat customers and experience a decline in sales and reputation.

[Abdul Hadi]

KN: increased labour turn over can ruin the reputation of the company.
App: for example a company having high labour turn over will portray the company as non labour friendly meaning that the company does not care about its employee etc.
An: This makes it difficult for the company to hire new employees as no one wants to work in a company where they are not valued, moreover a company with high turn over may have slower production as the new labour might be unskilled or they might not be able to hire any labour at all. Furthermore with a high turn over rate the quality of the production will also decrease.
AN+: Increased turn over rate will reduce the competitiveness of the company as the company will not be able to deliver projects on time.

KN: increased cost of the company
App: for example a company having high turn over rate will require more funds to hire people for the company.
AN: this means that the company will not be able to compete in market as its cost of running is already high. Moreover, the company will not be able to earn higher profits, increased productivity will reduce the motivation of the owners in the long term as their main purpose of achieving higher profits is not met.
AN+: The company with high turn over rate will be forced to shift it's focus/goods in order to enter a newer market with more profits.

[Mamoona Hussain]

KN: The business will not be able to sustain quality.
APP: For example in a beauty salon if the hairstylists are constantly changing turn the quality of the services will also fluctuate.
AN: Due to this the customers may loose due to which the salon's customer will fall , due to which the brand image will be negatively affected. Thus they will not be able to charge higher prices.
AN+: Therefore, the revenue and profit of the business will also decrease .
KN: There will be confusion among employees, if higher_ups are constantly changing.
APP: For example, if the chief makeup artists are constantly changing, then the employees can have trouble following a new style and set of rules every now and then .
AN: Due to this there will be inefficiency and thus the cost of the business will increase as they may have to buy new cosmetics after every change and then there will be wastage of previous cosmetics and some electronics as well. This will demafirat the employees and the business may have to bear increasing looses.
AN+: Due to this , the growth of the business will be restricted.

[tanzeelrehman]

KN: Can lead to a loss of skilled and experienced labours.
APP: F.e, in a restaurant if trained waiter leave, the restaurant may struggle to give the same quality of service to customers.
AN: Due to high labour turnover, business product and service quality can be very negatively affected, so this makes the customers dissatisfied
This will decrease the business profit.
This will very badly affect its reputation
AN+: This will make the business spend more on recruitment and training, which increases costs and reduces profit.


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KN: Can lead to increase in recruitment and training costs.
APP: F.e, if a restaurant have high labour turnover, then it will have to spend more time and money in hiring and training new employees
AN: This will reduce the business profit.
It will limit funds available for other areas such as marketing.
It may force the business to cut the cost in other areas, so affecting staff additional benefits.
AN+: It could impact long-term financial planning, as more money will be spent on staff development instead of growth strategies.

[shamaim shakeel]

Increased recruitment and training costs
Recruitment is the process a business uses to find and hire new employees to fill job vacancies.
K: High labour turnover makes a business spend more money on hiring and training new workers. App: For example, in a retail shop, if staff leave often, the manager has to advertise for new employees and train them on how to serve customers. AZ: New employees take time to learn their jobs and are not as fast or skilled as experienced workers, which can slow down work and make existing staff busier. AZ+: This costs the business money, reduces profits, and can lower the quality of service for customers.

Disruption to operations and reduced efficiency

K: High labour turnover can disturb the work of a business and make it less efficient. App: For instance, in a software company, if programmers leave often, projects can be delayed because new staff need time to learn the systems. AZ: Work slows down, teams struggle to complete tasks on time, and mistakes may happen as new employees get used to the job. AZ+: This can lead to missed deadlines, unhappy clients, and lower profits, which makes the business less competitive

[Fatima ibtehaj]

[KN]A business may spend more on training and recruitment.
[APP]A restraunt with high labour turnover may constantly lose trained workers.
[AN]This can lead towards a rise in costs for the business which can reduce profitability and it can also lower productivity as new employees take time in learning their roles.
[AN+]In addition, frequent staff change can reduce team moralle and motivation especially if experienced workers leave and remaining staff may feel overworked leading towards a decline in productivity hence lower sales.
[KN]It can disrupt business operations.
[APP]For instance in a manufacturing company when experienced machine operators leave production slows down
[AN]Thus the businesses overall efficiency may decrease which can lead towards more mistakes and so this can lead towards a decline in descion making and dissatisfied customers.
[AN+]Overtime, this can harm the businesses reputation and competitiveness which can lead towards lower sales and profits.

[Arham Qadri]

[KN] it can affect a business by lowering overall productivity.
[APP] For example if a cafe loses waters, the waiting period for customers will increase.
[AN] Hence this will result in complaints from customers. It will create a bad image of business and will decrease customers loyalty. It will also reduce sales.
[AN+] So it will make it harder to attract new customers.

[KN] High labor turnover can disrupt teamwork within the business.
[APP] For example, in a store, when staff frequently leave, new employees may not coordinate well with existing ones during busy hours.
[AN] Hence this can lead to mistakes in serving customers, slower service, and frustration among staff.
[AN+] Also it may lead to complaints from customers which may worsen the brands/shops image