LABOUR TURNOVER

ABSENTISM ,LABOUR TURNOVERAND ITS CALCULATION

ABSENTEEISM

MEANING OF ABSENTEEISMEmployees to be present in work place as per timings or schedule fixed for the purpose .Deviation from the fixed time reporting: Co.s lossWhen an employee fails to report for duty on time without prior intimation or approval, then the employee is marked as absent.

TYPES OF ABSENTEEISMAbsenteeism is of four types: Authorised Absenteeism Unauthorised Absenteeism Wilful Absenteeism Absenteeism caused by circumstances beyond ones controlFEATURES OF ABSENTEEISMRate of absenteeism The lowest --pay day Increases -- on the days following the payment of wages and bonus.Generally high among the workers Below25 years of age Above 55 years of age.Rate of absenteeism varies from department to department within an organization. Absenteeism in traditional industries is seasonal in characterCALCULATION OF ABSENTEEISM RATEAbsenteeism can be calculated with the help of the following formula: Absenteeism Rate Frequency Rate Severity RateCALCULATION OF ABSENTEEISM RATEAbsenteeism Rate Number of man days lost * 100 No. of man days scheduled to work

Frequency RateTotal number of times in which the leave was availed * 100 Total number of man days scheduled to work

Severity Rate Total number of days absent during a period * 100 Total number of times absent during the periodCAUSES OF ABSENTEEISM

Personal Factors

Work Environment

Home Conditions

Regional Aspects

Organizational Features

Social ReasonsCAUSES OF ABSENTEEISM

Personal Factors - age, marital status, health, education, hobbies, extra curricular activities.Work Environment working conditions, relation with coworkers & seniors and their attitudeHome Conditions distance from residence, mode of conveyance, family size, family problems & responsibilitiesRegional Aspects legislations, politics, geographical situationsOrganizational Features type & size of company, work load, nature of work, shift arrangements, management attitude, personnel policies, leave facilities and medical benefitsSocial Reasons religion, community obligations, customs festivals, marriage and deathSOME MEASURES TO MINIMISE ABSENTEEISMSelecting the employees by testing them thoroughly regarding their aspirations, value systems, responsibility and sensitiveness Adopting a humanistic approach in dealing with the personal problems of employees Following a proactive approach in identifying and redressing employee grievances Providing hygiene working conditions, welfare measures, fair and competitive remunerations, training and developmentLABOUR TURNOVER

MEANING OF 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 labour turnover

CAUSES OF LABOUR TURNOVERReduced quality of work

Discontinuance of business

Changed Industrial process

Seasonal fluctuations in relation to volume of business Industrial depression

Nature of work

CAUSES OF LABOUR TURNOVER (Contd.)Low wages

Poor working conditions

Less opportunities for advancement

Bad relations of workers with themanagement also cause labour turnover.

Union base activities of theworkers create conflict with the management

Personal problems of employees

Change of jobs----different industry

COSTS OF LABOUR TURNOVER

High rates of labour turnover are expensive in terms of: Additional recruitment costs Lost production costs Increased costs of training replacement employees Loss of know-how and customer goodwill Potential loss of sales (e.g. if there is high turnover amongst the sales force) Damage that may be done to morale and productivity (an intangible cost)

ESTIMATING LTO Every good organization prepares a report of labor turnover to refer and rectify the avoidable causes of turnover. Average No. = (No. of employees at start + No. of employees at end) / 21- Separation Method/Rate: Number of employees separated in a period * 100 Average number of employees in the period2- Replacement Method/Rate: Number of employees replaced in a period * 100 Average number of employees in the period3- Flux Method/ Rate: No. of employees separated + No. of employees replaced * 100 Average number of employees in the period

MEASURES TO CONTROL LABOUR TURNOVER Analysis of the employees records &identification of dissatisfied categories ofemployees by the manager

Identification of the factorsor sources influencing turnover

Exit interviews

Separation of controllable factors from uncontrollable factorsProvisionoffactorypolicies,procedures& practices

Action planto remove influencing factors

ConclusionAbsenteeism and labour turnover are connected

Absenteeism above 5 % very serious

Bad reputation of business leading to drop in sales, lower profits, bad cash flow

Decrease in output

Drop in Market share

Struggle to compete with rival companies

Reduce absenteeism and labour turnover

Introduction of incentive plans

100% attendance awards / benefits

Friendly and healthy formal relationship within the organisations

Involvement of employees in decision making

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