y Labour turnover refers to the movement of

employees in and out of a business. y However, the term is commonly used to refer only to wastage or the number of employees leaving. y Labour turnover is the rate at which an employer gains and loses employees.

Definition
y The ratio of the number of employees that leave a

company through attrition, dismissal, or resignation during a period to the number of employees on payroll during the same period

Causes of labour turnover

Inadequate wage levels leading to employees moving to competitors Poor morale and low levels of motivation within the workforce Recruiting and selecting the wrong employees in the first place, meaning they leave to seek more suitable employment A buoyant local labour market offering more (and perhaps more attractive) opportunities to employees

How to reduce labour turnover

y Pay Problem increasing pay scale & improving pay structure to remove inequities y Employees Learning to further their Career providing better career opportunities& ensuring the job, opportunities for training & development program, implement promotion y Employees Leaving due to Conflict more effective procedure for handling grievances & improving communication, using resolution & teambuilding techniques, reorganisation of work. y The Induction Crisis improving recruitment & selection process, ensure job requirement, developing better induction & initial training program

Methods used to estimate turnover

y 1- Separation Method/Rate: (Number of employees separated in a period / Average number of employees in the period ) * 100 y 2- Replacement Method/Rate: (Number of employees replaced in a period / Average number of employees in the period) * 100 y 3- Flux Method/ Rate: (No. of employees separated + No. of employees replaced) / Average number of employees in the period } * 100

Absenteeism
y 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 called absenteeism in the organisation

Causes of absenteeism
y Personal Factors - age, marital status, health,

education, hobbies, extra curricular actitvites. y Work Environment working conditions, ralation with co workers & seniors and their attitude y Home Conditions distance from residence, mode of conveyance, family size, family problems & responsibilities

subsidiary economic interests y Regional Aspects legislations, politics, geographical situations y Organisational Features type & size of company, work load, nature of work, shift arrangements, management attitude, personnel policies, leave facilities and medical benefits y Social Reasons religion, community obligations, customs festivals, marriage and death
y Economic Issues