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ACCA Applied Knowledge · Management Accounting · Accounting for material, labour and overheads

Which of the following is most likely to INCREASE the labour turnover rate in a factory?

Poor supervision and unsafe working conditions are most likely to increase labour turnover because they push employees to leave. Career progression, bonuses and better induction and training improve motivation and retention, so they tend to reduce turnover.

  1. AIntroducing a clear career progression scheme
  2. BPoor supervision and unsafe working conditionsCorrect
  3. COffering performance-related bonuses
  4. DImproving induction and training programmes

Explanation

Poor supervision and unsafe conditions are common causes of employees leaving and so raise turnover. The other options are measures that improve morale or retention and would reduce turnover.

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