Final answer:
The reduction in employee turnover is reported in the Learning and Growth category of a balanced scorecard, which focuses on employee satisfaction, retention, and organizational training effectiveness.
Step-by-step explanation:
The reduction in employee turnover would typically be reported in the Learning and Growth category of a balanced scorecard. The balanced scorecard is a strategic planning and management system that organizations use to communicate what they are trying to accomplish, align the day-to-day work that everyone is doing with strategy, prioritize projects, products, and services, and measure and monitor progress towards strategic targets.
While it may seem that employee turnover has a financial aspect, and indeed it does affect the financials, it is more directly related to employee satisfaction, retention, and the internal processes of talent management and workforce capability. Therefore, it is most appropriate in the Learning and Growth perspective, which includes training and corporate culture aspects as well. This category addresses the question: How must the organization learn and improve in order to meet its objectives?
Furthermore, effective organizational training can influence employee satisfaction and turnover. According to the study by Arthur et al. (2003), effective training can lead to enhanced job performance and can be measured through various types of evaluations.