Employees are the main pillars and the most important factor in driving the success of the organization in realizing its core mandate. Employees’ turnover can impact on the organizational performance. Unplanned staff turnover is problematic and expensive, affecting not only learning and efficiency, but also the capacity of the National Industrial Training Authority (NITA) to respond to new emergencies or to continue with existing programs. There is therefore sufficient evidence of the need to conduct research on perceptions of employees on the impact of labor turnover in the operations of National Industrial Training Authority in Kenya. This study adopted a descriptive – correlational research design and data gathered from survey questionnaires administered to 149 employees from various departments and managerial levels at NITA were analyzed using descriptive statistics, t-test for independent samples, one-way analysis of variance, and Spearman rank-order correlation coefficient. It was established employees’ perceptions that labor turnover has a negative impact on employee productivity, quality of work, cost, and workplace morale. Employees with management positions and with higher level of education perceive that labor turnover provides organizational and employee opportunities to some extent. Position duration of stay in the organization significantly influence perceptions on the impact of labor turnover on cost while level of education significantly influences perceptions on the impact on employee productivity. The study recommends that the organization should strive to minimize labor turnover and focus on retaining employees so as to improve on employee productivity, quality of work, workplace morale and manage the cost associated with labor.