What does an increase in labour turnover generally indicate about a business?

An increase in labour turnover generally indicates potential issues in the work environment, making this the correct choice. High labour turnover often means that employees are leaving the organization at a higher rate than usual. This can signal dissatisfaction among staff, which might stem from various factors such as poor management practices, inadequate working conditions, low morale, or insufficient compensation. When turnover rates rise, it typically reflects ongoing challenges in employee retention and workforce stability, suggesting that employees may not feel motivated to stay with the organization.

Although job satisfaction tends to correlate with lower turnover, an increase suggests the opposite is happening in the workplace, which makes that choice less relevant. Stability in operations would usually be associated with low turnover, as high turnover can disrupt processes and team cohesion. Finally, while an increase in employment opportunities might attract more candidates, it does not directly relate to turnover rates indicating issues within the organization.