Absenteeism and Labor Turnover


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In this presentation, we will discuss the meaning, types, categories, causes, features and calculation rate of absenteeism in a professional environment and corporate organisations.
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Absenteeism and Labor Turnover

  2. 2. CHAPTER 5 MEANING OF ABSENTEEISMEach employer/any organization expectsemployees to be present in work place as pertimings or schedule fixed for the purposeAny deviation from the fixed time reportingentails loss to the organization. When an employee fails to report for duty ontime without prior intimation or approval, thenthe employee is marked as “absent”.
  3. 3. CHAPTER 5 TYPES OF ABSENTEEISMAbsenteeism is of four types: Authorised Absenteeism Unauthorised Absenteeism Wilful Absenteeism Absenteeism caused by circumstances beyond one’s control
  4. 4. CHAPTER 5 FEATURES OF ABSENTEEISM The rate of absenteeism is the lowest on pay day andincreases considerably on the days following the paymentof wages and bonus Absenteeism is generally high among the workers below25 years of age and those above 40 years of age The rate of absenteeism varies from department todepartment within an organization. Generally it is high inthe production departmentAbsenteeism in traditional industries is seasonal incharacter
  5. 5. CHAPTER 5 CALCULATION OF ABSENTEEISM RATE Absenteeism can be calculated with the help ofthe following formula: Absenteeism Rate Frequency Rate Severity Rate Contd.
  6. 6. CHAPTER 5CALCULATION OF ABSENTEEISM RATE Absenteeism Rate=(Number of mandays lost)/(Number of mandays scheduled to work) * 100 Frequency Rate=(Total number of times in which the leave was availed)/(Total number of mandays scheduled to work) * 100 Severity Rate (Total number of days absent during a period)/(Total number of times absent during the period ) * 100
  7. 7. CHAPTER 5 CAUSES OF ABSENTEEISM Maladjustment with the Working Conditions Social and religious Ceremonies Unsatisfactory Housing (conditions at theworkplace)Industrial Fatigue Unhealthy Working Conditions Poor Welfare Facilities Contd.
  8. 8. CHAPTER 5 CAUSES OF ABSENTEEISMMaladjustment with the Job demandsAlcoholismIndebtnessUnsound Personnel PoliciesInadequate Leave FacilitiesLow level of Wages
  9. 9. CHAPTER 5 CATEGORIES OF ABSENTEEISMEntrepreneursThe Status seekersThe EpicureansFamily-orientedThe Sick and the Old
  10. 10. CHAPTER 5SOME MEASURES TO MINIMISE ABSENTEEISM Selecting 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 development
  11. 11. CHAPTER 5 LABOUR TURNOVER: MEANINGExternal mobility means shifting of employeesinto and out of an organization It is defined as the rate of change in theemployees of an organization during adefinite periodIt measures the extent to which oldemployees leave and and new employeesenter into an organization
  12. 12. CHAPTER 5 TYPES OF LABOUR TURNOVERExternal mobility is of two types: Accessions: Additions of new candidates to the existing employees Separations: Termination of employment or Employee turnover which includes - Voluntary quitting or resignations by emploees Layoff or Lack of Work Disciplinary Lay-off or Discharge Retirement and Deaths
  13. 13. CHAPTER 5 COMPUTATION OF EXTERNAL MOBILITYRate of external mobility is generally computed interms of accession rate, separation rate andcompose rate Accession Rate=(Total Accessions per year)/(Average number of employees for the year) * 100 Separation Rate=(Total Separations per year)/(Average number of employees for the year) * 100 Contd.
  14. 14. CHAPTER 5 Composite Rate = [(Total accessions per year + Total Separations per year)/2] / (Average number of employees for the year ) * 100 These formulae are useful to compute and comparethe rates with those of other organizations for the sameperiod and of the same organization for the past years This comparison shows the trends in mobility rates andthe place of the organization in the community inrespect of turnoverIt also shows the magnitude of the problem andindicates the effects of external mobility
  15. 15. CHAPTER 5EFFECTS AND CONTROLLING OF EXTERNAL MOBILITYCertain degree of external mobility is inevitable andalso desirable to enable flow of efficient humanresources into the organizationThough external mobility is for the betterment of theemployees in some cases, it causes problems toemployees in many casesPersonnel managers have to analyze the causes formobility and find means to control it in view of itsadverse effects on the organization and employees Contd.
  16. 16. CHAPTER 5 EFFECTS & CONTROLLING OF EXTERNAL MOBILITY Personnel managers have to analyze the causesof mobility before suggesting measures to reduceit The management has to forecast the vulnerableareas of external mobility and apply appropriatemeasures. Reduction of excessive employee mobility byidentifying the areas and applying measures isthe responsibility of the executives at all levels inthe organization
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