The document discusses different methods for analyzing workforce wastage and turnover, including wastage analysis, cohort analysis, census analysis, and skills inventories. Wastage analysis examines factors like voluntary retirement, resignations, and dismissals over time. Cohort analysis considers length of service and studies homogeneous groups. Census analysis takes a cross-section of the organization to identify general wastage patterns. Skills inventories maintain individual employee data to help identify candidates qualified for future assignments.

1. Wastage analysis
Cohort analysis
Census analysis
Skills inventories

2. WASTAGE ANALYSIS
 It is an element of labor turnover which includes voluntary retirement,
normal retirement, resignations, deaths & dismissals
 Tailstocks institute of Human Relations, UK suggested a curve in
wastage analysis.
 During induction phase, marginal employees leave.
 During differential transit period, an employee learns about the
organization & identifies his role in it.
 While during the period of settled connection, an employee settles
down & decides to stay long.
 Wastage decreases with the increase of length of service. Wastage also
decreases with the increased skill exercises & age of employees.
 Wastage of manpower is more in female than male employees.
 Working conditions & size of the firm are also important variable of
manpower wastage.

3. DIFFERENT METHODS OF WASTAGE
ANALYSIS
 Labor turnover index – It indicates the number of levers as
percentage to average number of employees. Average number of
employees employed in a given time period is decided by adding
the employees at the beginning & then dividing the same by two.
 For example – A firm has 250 employees at the beginning of a
year & 230 at the end. What will be the labor turnover index ?
Number of employees leaving =20 & average number of
employees employed =(250+230)/2=240. Labor turnover
=(20/240)*100 =8.33%.
 Stability index – It indicates stable workforce percentage for a
given period .
 For example – Number with > 1 year service now/total employed
1 year ago *100.

4. COHORT ANALYSIS
 Cohort means homogeneous groups.
 It takes into account the length of service, which is an
important variable of wastage analysis.
 This eliminates the defect of labor turnover index.
 It is more accurate for a small homogeneous group.
 (Number remaining at given time/number engaged at
the start)*100.

5. CENSUS ANALYSIS
 Census analysis can eliminate the problem of Cohort
analysis (it studies small group), taking into account a
cross-section of the organization, for example all the
age specific wastage rates at a given time & applying a
smoothing algorithm to the resulting data to identify a
general pattern.
 The number of employees at the beginning of the
census.
 The number of employees at the end of the census.
 The number of leavers during the census period.

6. SKILLS INVENTORIES
 For assessing effectively internal manpower supply, it is
important for an organization to maintain skills inventory
containing various information about individuals & their
suitability for different jobs.
 A typical skills inventories include the name of the employee & a
listing or inventory of job-related skills, training, & experience
which could prove useful in a future assignment.
 The purpose of skills inventories is to quickly identify those
candidates who possess the needed qualification & other
required attributes for a specific assignment.
 With the availability of standard HRIS packages, maintaining
skills inventories in the organization has now become much
more easier.