absenteeismabsenteeism

““It is the practice of being an It is the practice of being an Absence and an absentee is Absence and an absentee is

one who habitually stays one who habitually stays away”away”

causescauses Difficult to adjust with the working Difficult to adjust with the working

conditionsconditions Social and religious ceremoniesSocial and religious ceremonies AlcoholismAlcoholism Low level of wagesLow level of wages Unsound personnel policiesUnsound personnel policies Indebt nessIndebt ness Inadequate leave facilitiesInadequate leave facilities Industrial fatigueIndustrial fatigue Unhealthy working conditionsUnhealthy working conditions Unsatisfactory housingUnsatisfactory housing

calculationcalculation

Absenteeism rate= number of man Absenteeism rate= number of man days lost number of man days lost number of man days scheduled to work * 100days scheduled to work * 100

Minimizing absenteeismMinimizing absenteeism

Adoption of suitable recruitment Adoption of suitable recruitment procedureprocedure

Training and counselingTraining and counseling Employee welfare measuresEmployee welfare measures Good work environmentGood work environment Two way communication Two way communication Disciplinary actionsDisciplinary actions Leave provisionsLeave provisions Prompt redressal of grievancesPrompt redressal of grievances

Employee attritionEmployee attrition

“ “The rate of change in the working The rate of change in the working staff of a concern during a definite staff of a concern during a definite period, commonly a month”period, commonly a month”

reasonsreasons

Employee related factorsEmployee related factors Organization related factorsOrganization related factors

Calculation of attrition Calculation of attrition raterate

Total seperations during the yearTotal seperations during the year

average number of employees * 100average number of employees * 100

Retention strategiesRetention strategies

Exist interviewExist interview Package for long term stayPackage for long term stay Intangible benefitsIntangible benefits Matching jobs and individualsMatching jobs and individuals Work environmentWork environment persuasionpersuasion Employee relationship managementEmployee relationship management

Managing separations and Managing separations and rightsizingrightsizing

Separation means cessation of service Separation means cessation of service of agreement with the organization of agreement with the organization for one or other reason. Ex: layoffs, for one or other reason. Ex: layoffs, resignation and dismissalsresignation and dismissals

Rightsizing means reducing the size Rightsizing means reducing the size of workforce or increasing it to of workforce or increasing it to maintain the employee strength at the maintain the employee strength at the most desired level.most desired level.

Guidelines to manage Guidelines to manage rightsizingrightsizing

Consider the human elementConsider the human element Freeze hiringFreeze hiring Engage part time employeesEngage part time employees Restrict overtimeRestrict overtime Implement early retirement Implement early retirement

programmesprogrammes Delay and no pay hikesDelay and no pay hikes

Compensation and benefits Compensation and benefits administrationadministration

Meaning: “compensation includes direct Meaning: “compensation includes direct cash payments, indirect payments in the cash payments, indirect payments in the form of employee benefits and form of employee benefits and incentives to motivate employee to incentives to motivate employee to strive for higher levels of productivity”strive for higher levels of productivity”

““Compensation management refers to Compensation management refers to payment systems which determine payment systems which determine employee wages or salary, direct and employee wages or salary, direct and indirect rewards”indirect rewards”

Need for sound salary Need for sound salary administrationadministration

Internal equityInternal equity External competitivenessExternal competitiveness Built in incentiveBuilt in incentive Link with productivityLink with productivity

objectivesobjectives

To establish a fair and equitable To establish a fair and equitable remunerationremuneration

To attract competent personnelTo attract competent personnel To retain the present employeesTo retain the present employees To improve productivityTo improve productivity To control costsTo control costs To improve union management relationsTo improve union management relations To improve public image of the To improve public image of the

companycompany

Factors affecting wage and Factors affecting wage and salary levelssalary levels

Labour marketLabour market Bargaining powerBargaining power Cost of livingCost of living Condition of product marketCondition of product market Comparative wagesComparative wages Ability to payAbility to pay Productivity of labourProductivity of labour Job requirementsJob requirements Government policyGovernment policy Goodwill of the companyGoodwill of the company

Salary structureSalary structure

Basic payBasic pay BonusBonus Dearness allowanceDearness allowance House rent allowanceHouse rent allowance City compensatory allowanceCity compensatory allowance Travel allowanceTravel allowance Fixed medical allowanceFixed medical allowance Tiffin allowanceTiffin allowance Conveyance allowanceConveyance allowance Children education allowanceChildren education allowance Hostel allowanceHostel allowance

Salary fixationSalary fixation

Principles of pay fixationPrinciples of pay fixation Economic position of the countryEconomic position of the country Cost of living and price levelCost of living and price level State as the model employerState as the model employer Equal pay for equal workEqual pay for equal work Prevailing market ratePrevailing market rate Policy of the governmentPolicy of the government

Wage salary surveyWage salary survey

It helps W/S administrator to acquire It helps W/S administrator to acquire useful and necessary information useful and necessary information concerning community rates and concerning community rates and practices to have inter industrial practices to have inter industrial equity concept and provide equity concept and provide information to design effective W/S information to design effective W/S structures and wage payment structures and wage payment systemssystems

typestypes

Commissioned surveyCommissioned survey External surveyExternal survey Internal surveyInternal survey

processprocess

Planning for the purposePlanning for the purpose Selecting sources of data and Selecting sources of data and

sample and toolssample and tools Conducting surveysConducting surveys Analyzing and interpreting dataAnalyzing and interpreting data ConcludingConcluding

incentivesincentives

An incentive scheme is a plan to An incentive scheme is a plan to motivate individual for good motivate individual for good performance. An incentive is built on performance. An incentive is built on monetary rewards and also include monetary rewards and also include non-monetary rewardsnon-monetary rewards