“Labour turnover" is the term which is a big concern for many organisations in the world. Many institutions are increasingly finding it difficult to retain employees. Turnover is becoming a serious problem in today's corporate environment. Turnover costs for many organizations are very high and can significantly affect financial performance of an institution. Although there has been a lot of research and studies which have been conducted on this topic, most of these studies and research focused on the causes of the labour turnover and little or no focus has been made on examining the impacts and advising different strategies which can be used by the managers within their organisation to make sure that they don't lose their employees. The purpose of this research is to identify the impacts of labour turnover on business performance and also to suggest few steps to the managers and the organisation on how to handle this situation. Most of the theories and procedures discussed in this report will some way or the other suggests us on how to approach this situation of labour turnover in the organisation. Organisations need labour to function and these days organisations are quickly realizing that employees arc their major source of competitive advantage to succeed in this highly competitive world. From the findings, 43.3% of the respondents strongly agreed that labour turnover negatively affects business performance because of loss of organizational memory as well as loss of knowledge.40% agreed. 6.7% strongly disagreed and 10% disagreed. Motivation should be the hallmark of management to retain employees as it boosts their morale towards work. These can include but not limited to provision of accommodation for its employees or sufficient rent allowances in lieu of company accommodation. It is predicted that this will lead to high productivity.