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

[Hajra]

Effect 1:
[KN] High labour turnover increases recruitment and training costs.
[APP] For example, a supermarket keeps spending money hiring and training new cashiers.
[AN] This reduces profit because money is repeatedly used on new staff instead of operations.
[AN+] Over time, these rising costs weaken the business’s financial stability.

Effect 2:
[KN] High labour turnover reduces overall work quality and efficiency.
[APP] For example, a factory with many new workers produces slower and makes more mistakes.
[AN] This delays production and may lead to defective products.
[AN+] In the long run, customers lose trust and the business may lose market share.

[Qasim_Mahmud]

Kn: High labour turnover can increase recruitment cost and training them
App:For example the business must spend money on advertising vacancies interviewing candidates and training bew stadff
Ana:Tgis increases overall business expenses and reduce profits because more resources are spent on replacing workers
F.A:As a result the business may have less money to invest in improvements
Kn:High labour turnover can also lead to lower productivity and reduced efficiency
App: Foe example the new employees may take time to learn about their roles while remaining staff may be demotivated due to frequent departures
Ana:This means work may be completed more slowly and errors may increase
F.A:Therefore the business may struggle to meet customer demand or maintain quality leading to a drop in sales

[Abdur Rehman khan]

[KN] High labour turnover means employees leave frequently, so the business must spend more on recruiting and training new staff.
[APP] For example, a retail store may need to regularly advertise for job and train new sales assistants.
[AN] These extra costs increase overall expenses reducing the business profit margins and limiting the money available for other activities like expansion or marketing.
[AN+] This financial pressure can make the business less competitive, especially if rivals have lower costs and can offer better prices or invest more in their operations.

[KN] High labour turnover means the business relies more on new and inexperienced staff, which can reduce the quality of the product or service.
[APP] For example, in a restaurant, new staff may take longer to prepare food or make mistakes in customer orders.
[AN] Poor service quality leads to customer dissatisfaction causing customers to switch to competitors which reduces the business’s sales and reputation.
[AN+] A damaged reputation can be difficult and expensive to recover from, leading to long-term loss of market share and profits.

[sarah_naeem]

[KN]: High labour turnover may make attracting and recruiting new people more difficult.
[APP]: For example, if more people start resigning from a clothing store, former employees may bad mouth or speak negatively about the company.
[AN]: Thus, this would worsen the reputation of the business and lead to lack of skilled employees which would also lead to decline in productivity.
[AN+]: Furthermore, this would overall reduce the quality of workforce and also increase recruitment cost.

[KN]: High labour turnover can also damage employee morale and teamwork within a business.
[APP]: For example, in a manufacturing company, when experienced workers frequently leave, remaining staff may feel overworked and demotivated.
[AN]: Thus, this can reduce cooperation leading to lower output and less efficient work would be done, chances of error would be more due to lack of skilled employees
[AN+]: Furthermore, this would lead to overall decline of business and business would fail quicker.

[masabtahir]

kn] high labor turn over on a business effects the stability of growth in business as it take time for a new employ to set in the business for work
ap] for e.g. construction company has a high labor turn over in the firm which will make their projects delay
an] this will create a delay in their projects as new employ will be having new ideas and mindsets so they will work with the different plans and perspective which will make the company projects delay
an+] this will decrease the sales and damage the brand image and quality of their services making the customer bored and dissatisfied which will make the revenue of the firm low

kn2] high labor turnover will increase the training cost on the business by training every new employ in the firm
ap] for e.g. a software house if labor turnover increases this will make them to train every new employ in the firm which will increase the training cost in the business increasing their expense
an] this will make the profit of the firm decrease as expense rises for them so this will make the owner dissatisfies and will remove his focus from the business making the business further weaker in form this will further make the sales and output decrease as less attention to the business
an+] this will shutdown the business in short as business cant bear the cost of its operations making it shutdown

[areeshasaber]

[kn] Having high labour turnover can increase recruitment and training costs.
[app] for example, a call centre hires many new agents because employees often quit.
[an] this can reduce overall knowledge, reduce service quality, and increase employee stress.
[an+] This can result in damaging the company's reputation.
[kn] Labour turnover can disrupt productivity and operations
[app] High labour turnover in a call centre causes delays and mistakes.
[an] this will lead to poor customer experience, loss of clients, and increase costs.
[an+] This will result in decreased profit.

[Ruqyia Salman]

1 KN: High labour turnover increases recruitment and training costs for the business.
APP: For example, a retail store must constantly spend money advertising vacancies and training new staff.
AN: These extra costs reduce profits because money is diverted away from productive activities.
AN+: Over time, this weakens the business’s financial performance and may limit investment in growth. 2.KN: High labour turnover can reduce quality, as new staff are often inexperienced and less skilled.
APP: For instance, a bakery with new workers may produce inconsistent bread quality at first.
AN: This can lead to customer complaints and dissatisfaction.
AN+: As a result, the business risks losing loyal customers and damaging its reputation.