Statutory RequirementsRelated to Labour Cost Labour Turn overDefinition :-“Labour turnover is the rate of change in the working staff of concern during a definite period. It is the measure of the extent to which old workers leave and new worker enter the service of concern in given period”
Cause of labour TurnoverMajor Causes are divided into 3 categories1. Personal Causes2. Avoidable Causes3. Un-Avoidable Causes
Personal Causes Lack of interest in the work. Higher Salaries and wages outside Family commitments Health problem, Cickness,old age Death and retirment Marriage
Avoidable Causes Lower pay and Allowances. Long and odd of work. Lack of job satisfaction. Unhappy with co-workers and supervisor. Dispute with trade union. Odd recruitment policy. Facilties of recreation lacks Promotion methods
Un-Avoidable Causes Retrenchment due to seasonal trade. Discharge by long absentisment. National or state emergence services War Expansion and development Rationalization of industry by automation and comuterisation.
Cost associated with labourcostCost of labour turnover are classified :- Prevention Cost:-Eg:- Personal Adminsation ,Cost of welfare ,schemes, other incentive schemes ,pension,bonus,high wage plans2. Replacement Cost:- Cost for training of new employee,losses,wastage ,lose of productivity .
Index of Labour Turnover Important indices of labour turnover1. Separation Index2. Replacement Index3. Flux Index
Separation Index The number of workers leaving the oranisgation as compared to average number of workers in given period is consider .Separation Index= No.of separation in a given period *100 Average No. of worker in given peroid
Replacement Index The number of worker replaced at the vacant position of the organisation as compared to the average number of workers in given period is consider .Replacement period = No.of replacement in given period * 100 Average no.of worker in given period
Flux Index The addition of the number of worker leaving the organization as well as the number of new worker replacement them, as compared to the average number of workers in given period is consider .Flux Index= no. of separation in given period + no. of replacement in given period * 100 Average no.of worker in a given period
Impact of Labour TurnoverCost Increase cost of selection and training new workers. Delay in production. New worker efficiency. Decrases in overall production.
Measures to controlling labourturnover Right Person for Right Job Conducting employee orientation & induction programmes. Improvement in the working conditions. Providing fair wages and wage incentives. Promotion by merit and Promotion within. Labour particaption in Management. Maintenances of “job Interest” & Job Satisafaction. Effective commnuication throughout the business at all levels.li
Labour Cost BenefitAnalysis important To increase the effeces of the employee. Increase the production in organization. Retain the employee in organization. Health relationship among employee and employer .