LABOUR TURNOVER : Turnover means “change”. A change in the financial status of an

organization is called “the financial turnover”. A change in the number of employees of an organization is called “The

labor turnover”

REASONFOR LABOUR TURNOVER: Avoidable Reasons (low job satisfaction, low pay, risky or repetitive work etc.). Unavoidable reasons (death, retirement, accident, poor health etc.). Personal Reasons

(retirement due to old age, death, women workers leaving the job, domestic problems and family responsibilities, dislike of job etc.)

Every good organization prepares a report of labor turnover to refer and rectify the avoidable causes of turnover. Below are methods used to estimate turnover:

Average No. = (No. of employees at start + No. of employees at end) / 2

1- Separation Method/Rate:

(Number of employees separated in a period / Average number of employees in the period ) * 100

2- Replacement Method/Rate:

(Number of employees replaced in a period / Average number of employees in the period) * 100

3- Flux Method/ Rate:

(No. of employees separated + No. of employees replaced) / Average number of employees in the period } * 100

a) Dissatisfaction on account of insufficient wages leading to employees moving to competitors

b) Low level of motivation from employers’ side and poor morale within the workforce in a specific industry.

c) Recruiting and misplacement of employees resulting in their mobility in search of suitable employment.

d) A floating local labour market offering better and more attractive opportunities to employees. 

(i) Increased cost of recruitment and training,(ii) Decrease in production due to inefficiency and

inexperience of newly appointed workers,(iii) Loss arising due to defective work and increased wastage

in production,(iv) Newly employed workers are likely to mishandle tools and

equipment resulting in breakages of tools,(v) The new workers are more accident-prone and increased

number accidents cause loss of output and increase in medical expenses and cost of repairs.

(vi) Lack of cooperation and coordination between old and new workers resulting fall in output and increased cost of production.The overall effect of labour turnover, therefore, is a higher cost of production and lower profitability.

HOW TO REDUCE LABOUR TURNOVER

Following action may be taken to reduce labour turnover: Pay Problem – increasing pay scale & improving pay structure to

remove inequities Employees Learning to further their Career – providing better career

opportunities & ensuring the job, opportunities for training & development program, implement promotion

Employees Leaving due to Conflict – more effective procedure for handling grievances & improving communication, using resolution & teambuilding techniques, reorganization of work.

The Induction Crisis – improving recruitment & selection process, ensure job requirement, developing better induction & initial training program

Shortage of Labour – improving recruitment , selection & training, introducing better method of planning & scheduling work smooth out peak loads.

PRESENTEEISM Presenteeism is a term used by HR

professionals to describe circumstances in which employees come to work even though they are ill, posing potential problems of infection and lower productivity.

When employees go to work sick they risk infecting their co-workers and will most likely not be as effective or productive in their work

Stress Shift work

In every organisation an employee / worker has some definite working hours with certain responsibility (work assigned) and if the worker is not present in their working hours that is called as ‘absenteeism’ in the organisation.

FACTORS IN ABSENTEEISM : Moral Work schedule flexibility

1- Alternative Work Arrangements2. Compressed Work Week3. Job Sharing, and 4. Telecommuting

CAUSES OF ABSENTEEISM : Personal Factors - age, marital status, health, education,

hobbies, extra curricular actitvites. Work Environment – working conditions, ralation with

coworkers & seniors and their attitude Home Conditions – distance from residence, mode of

conveyance, family size, family problems & responsibilities Economic Issues – subsidiary economic interests Regional Aspects – legislations, politics, geographical situations Organisational Features – type & size of company, work load,

nature of work, shift arrangements, management attitude, personnel policies, leave facilities and medical benefits

Social Reasons – religion, community obligations, customs festivals, marriage and death

The rate of absenteeism is the lowest on pay day; it increases considerably on the days following the payment of wages and bonus

It is generally high among the workers below 25 years of age & those above 40 years of age.

Varies from dept-to-dept within one organisation. Generally it is high in production dept.

Traditional industries is seasonal in character The incidence of absenteeism is usually higher in the night shifts

than in the day shifts The % of absenteeism is generally much higher in mining and

plantation industries as compared to organized manufacturing industries.

1) Measuring the rate of absence and sickness In calculating overall absence rates, organisations can use a

standardized formula to show the amount of time lost. Lost Time Rate = (Number of days or shifts lost to absence /

Total number of working days/shifts) x 100

2) Measuring Frequency This reflects the number of absences on average taken by

employees, expressed as a % of the total number of employees: Frequency Rate = (Number of spells of absence in the period /

Number of employees) x 100

3) Brad Factor According to the Chartered Institute of Personnel and

Development the term was 1st coined due to its support connection with research undertaken by the Bradford University School of Management in the 1980s.

The Brad factor / formula is used in HRM as a means of measuring worker absenteeism.

Bradford factor identifies frequent short-term absences by individuals, by measuring the number of spells of absence.

Attendance / Absence score = (Spells of absence x Spells of absence) x Total duration of absence

B = S *S x D or B = S2 *D

Adoption of suitable Recruitment procedure Congenial work environment Training and development Employee welfare measures Two-way communication and prompt Redressal of Grievances & others

as follows:

An organization’s employee value proposition consists of what an organization has to offer that prospective or existing employees would value and which would help to persuade them to join or remain with the business.

It will include remuneration – which is important but can be over-emphasized compared with other elements.

These non-financial factors may be crucial in attracting and retaining people and include the attractiveness of the organization, the degree to which it acts responsibly, respect – diversity and inclusion, work–life balance and opportunities for personal and professional growth.

The aim is to become ‘an employer of choice’, a firm people want to work for and stay with.

On being an employer of choice, Purcell et al (2003) What seems to be happening is the successful

firms are – able to meet people’s needs both for a good job and to work ‘in a great place’.

They create good work and a conducive working environment.

In this way they become an ‘employer of choice’. People will & want to work there because their

individual needs are met – for a good job with prospects linked to training, appraisal and working with a good boss who listens and gives some autonomy but helps with coaching and guidance.