ABSENTEEISM & TURNOVER

Malik Muhammad SohailVisiting Lecturer

NTU

Absenteeism

• Development of industry is based on efficient working of industrial organization.

• The role of worker is important towards industry.

• Similarly the role of workers’ satisfaction is also important in formal organization.

• Unsatisfied workers can’t be motivated for more production and efficiency.

Definition

• Absenteeism can be defined as “Failure of employees to report for work, when they are scheduled to work”.

• Absenteeism refers to unscheduled employee absences from the workplace.

• Absenteeism is a habitual pattern of absence from a duty or obligation.

Types of Absenteeism

Authorized absenteeism (non-Culpable):• By taking permissions from his superior.• Applying for leave

Unauthorized absenteeism (Culpable):• Without taking permissions from his superior.• Without Applying for leave

Types…

Willful absenteeism:• Absent himself from duty willing fully.Absenteeism caused by circumstances beyond one’s control:• Duty owing to the circumstances beyond his control

like accidents and sudden sickness

Involuntary Absenteeism is when absences are unavoidable and understandable:1.Illness2.Death in the family3.Other family related or personal reasons4.Car troubles

Voluntary Absenteeism is when absences are avoidable.Not showing up to work for no good reasonShowing up late to work for no good reasonAny failure to report for work as scheduled or to stay at work when scheduled, for no good reason

Causes of AbsenteeismMaladjustment with factorySocial and religious ceremoniesIndustrial fatigueAlcoholismAbsence of adequate welfare activitiesImproper and unrealistic personnel policiesInadequate leave facilities.Bad politicsGroup influence

CONT…..Means of TransportHours of workNight shiftRural migrationSickness and low vitalityboredom on the job lack of job satisfaction inadequate leadership and poor supervisionpersonal problems (financial, marital, substance abuse, child care etc.)

Effects of AbsenteeismLost productivity of absent employee.Overtime for other employees to fill in.Decreased overall productivity of those employees.Inconsistency in qualityPossible loss of business or dissatisfied customers.Problems with employee morale.

.Increase in wastageIncrease in workloadIncrease in re-workDisturbance in systemIncrease in employee

turnover

Approaches to Control Absenteeism

Disciplinary ApproachPositive reinforcementCombination Approach “No fault” policyPaid-time-off (PTO) programs

Disciplinary Approach: Employees get oral and written warnings, suspensions, and even up to dismissal for absenteeism violations

Positive reinforcement: Employees receive rewards for good attendance.Lottery systemThe opportunity to change working conditions

Combination Approach: Employees are rewarded for positive behavior and are punished for bad behavior

.• “No fault” policy: Employees must manage

their own attendance unless they abuse that freedom. Once abused, then disciplinary action may be taken. Employers don’t judge whether the absences were excused or unexcused.

• Paid-time-off (PTO) programs: Employees can use vacation, holiday, and sick leave, which is accrued in an account, at their discretion. Once an employee runs out of PTO then they are not paid for any additional days off.

Other Remedies To The Absenteeism

The rate of absenteeism can be reduced by making provisions for:

• Improving the working condition in the factory• Providing adequate wages• Protection from accident and sickness• Providing facilities for obtaining leave for rest• Providing basic facilities• Training & education

.• Creating a sense of responsibility in workers towards

industry • Workers participation in the management of industry• Introducing incentive wage scheme and linking

wages and bonus with production• Adequate transport facilities

Labor Turnover

TURNOVER: “Turnover is voluntary and involuntary permanent

withdrawal from an organization. A high turnover rate results in increased recruiting, selection, and training costs”.

LABOR TURNOVER: “Labor turnover is the proportion of employees

that leave a business over a period of time. This is usually measured over one year”.

Cont….

• Labor turnover is calculated by dividing the number of employees leaving by the average number of employees within the business and then multiplying it by 100.

• For example if 20 employees left the business and the average number of employees was 500 then the labor turnover would be 4% ((20/500)x100).

Effects of Labor Turnover Increased cost of recruitment and training

Decrease in production due to inefficiency and inexperience of newly appointed workers

Loss arising due to defective work and increased wastage in production

Newly employed workers are likely to mishandle tools and equipment resulting in breakages of tools

Cont….

The new workers are more accident-prone and increased number accidents cause loss of output and increase in medical expenses and cost of repairs.

Lack of cooperation and coordination between old and new workers resulting fall in output and increased cost of production.

Causes of Labor TurnoverLack of job satisfactionLack of scope for training & promotion Bad working conditionsLong hours of workLack of facilities for recreationInadequacy of welfare measures Lack of understanding amongst the workers etc.

Reducing Turnover

• Offer fair working conditions and above-average pay• Understand their concerns and listen to their

complaints• Offer bonuses or prizes for specific levels of

productivity• Allow promotional opportunities• Stay in communication with your employees