What does a high labour turnover indicate about a company?

A high labour turnover indicates that employees are leaving the company at a rapid pace. This often suggests that the company may be facing retention issues, meaning it struggles to keep its employees satisfied and engaged enough to remain in their positions. High turnover can be a red flag for management, signaling problems such as poor working conditions, inadequate compensation, lack of career development opportunities, or low morale among employees.

When turnover rates are high, it typically leads to increased recruitment and training costs, disruption in team dynamics, and a potential gap in the company's operational efficiency. By understanding that a high turnover rate points to retention challenges, the company can identify areas for improvement to foster a more stable and committed workforce.