MANAGEMENT

Detailed explanation-1: -A high inventory turnover ratio, on the other hand, suggests strong sales. Alternatively, it could be the result of insufficient inventory. As problems go, ensuring a company has sufficient inventory to support strong sales is a better one to have than needing to scale down inventory because business is lagging.

Detailed explanation-2: -What is a high turnover rate? A high turnover rate means that many of your employees – more than what’s expected in your line of business – have quit the organization. What’s considered a high turnover rate depends on the industry you’re in. Different industries and countries have different expected turnover rates.

Detailed explanation-3: -You need to make sure they don’t leave. Companies worry about employee attrition in every department, but it’s especially costly in one function: sales. Estimates of annual turnover among U.S. salespeople run as high as 27%-twice the rate in the overall labor force.

Detailed explanation-4: -Sales turnover – What is sales turnover? Sales turnover is the company’s total amount of products or services sold over a given period of time-typically an accounting year.

Detailed explanation-5: -A high turnover rate negatively affects the company’s image. If employees leave due to poor compensation or lack of growth opportunities, it tells potential talent that it is not the best working environment. The image of a satisfied worker is a good way to attract and retain talent.