). death. accident. risky or repetitive work etc. A change in the financial status of an organization is called “the financial turnover”. dislike of job etc. A change in the number of employees of an organization is called “The labor turnover” REASONFOR LABOUR TURNOVER: Avoidable Reasons (low job satisfaction. women workers leaving the job. LABOUR TURNOVER : Turnover means “change”.). domestic problems and family responsibilities. poor health etc. low pay. Unavoidable reasons (death.) . Personal Reasons (retirement due to old age. retirement. of employees replaced) / Average number of employees in the period } * 100 . of employees separated + No.Separation Method/Rate: (Number of employees separated in a period / Average number of employees in the period ) * 100 2.Flux Method/ Rate: (No. of employees at start + No. = (No. Every good organization prepares a report of labor turnover to refer and rectify the avoidable causes of turnover.Replacement Method/Rate: (Number of employees replaced in a period / Average number of employees in the period) * 100 3. of employees at end) / 2 1. Below are methods used to estimate turnover: Average No. 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 and more local labour market offering better attractive opportunities to employees. (i) Increased cost of recruitment and training. (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. The overall effect of labour turnover. (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. . therefore. (vi) Lack of cooperation and coordination between old and new workers resulting fall in output and increased cost of production. (iv) Newly employed workers are likely to mishandle tools and equipment resulting in breakages of tools. is a higher cost of production and lower profitability. opportunities for training & development program. developing better induction & initial training program Shortage of Labour – improving recruitment . introducing better method of planning & scheduling work smooth out peak loads.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. ensure job requirement. implement promotion Employees Leaving due to Conflict – more effective procedure for handling grievances & improving communication. using resolution & teambuilding techniques. The Induction Crisis – improving recruitment & selection process. reorganization of work. . selection & training. 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 .PRESENTEEISM Presenteeism is a term used by HR professionals to describe circumstances in which employees come to work even though they are ill. Job Sharing. Compressed Work Week 3.Alternative Work Arrangements 2. 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. Telecommuting . FACTORS IN ABSENTEEISM : Moral Work schedule flexibility 1. and 4. geographical situations Organisational Features – type & size of company.CAUSES OF ABSENTEEISM : Personal Factors . hobbies. extra curricular actitvites. nature of work. Work Environment – working conditions. management attitude. marriage and death . customs festivals. work load.age. personnel policies. marital status. shift arrangements. education. family problems & responsibilities Economic Issues – subsidiary economic interests Regional Aspects – legislations. mode of conveyance. health. community obligations. ralation with coworkers & seniors and their attitude Home Conditions – distance from residence. family size. leave facilities and medical benefits Social Reasons – religion. politics. 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. The rate of absenteeism is the lowest on pay day. . Varies from dept-to-dept within one organisation. Generally it is high in production dept. 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. 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. organisations can use a standardized formula to show the amount of time lost.1) Measuring the rate of absence and sickness In calculating overall absence rates. 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. Attendance / Absence score = (Spells of absence x Spells of absence) x Total duration of absence B = S *S x D or B = S2 *D . The Brad factor / formula is used in HRM as a means of measuring worker absenteeism. by measuring the number of spells of absence. Bradford factor identifies frequent short-term absences by individuals. 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: . . It will include remuneration – which is important but can be over-emphasized compared with other elements. respect – diversity and inclusion. 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. the degree to which it acts responsibly. These non-financial factors may be crucial in attracting and retaining people and include the attractiveness of the organization. . a firm people want to work for and stay with. work–life balance and opportunities for personal and professional growth. The aim is to become ‘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’. On being an employer of choice. . 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. They create good work and a conducive working environment.