Labour turnover & absenteeism

1. LABOUR TURNOVER & ABSENTEEISM

2. Labour Turnover
• “ Labour Turnover is the movement of members
across the boundary of an organization.”
• “Labour Turnover is the voluntary and involuntary
permanent withdrawal from an organization”.
• A high turnover rate results in increased recruiting,
selection, and training costs.

3. Classification of Turnover
• Voluntary turnover consists of employees
exercising their free choice to leave.
• Involuntary turnover consists of separations
where an employee unwilling leaves.
• Functional turnover is when low performing
employees leave.

4. Factors affecting Labour turnover
External Factors
• Employment brand
• Candidate behaviours
• Candidate skills
• Job fit
• Etc
Internal Factors
• Recognition
• Training & Development
• Performance Management
• Communication
• Manager Quality
• Compensation
• Etc
Labour turnover

5. Reasons why a labour/employee leaves an
organization
 Monetary factors
 Lack of good working condition
 Lack of respect
 Very Few Supportive colleagues
 Lack of appreciation
 Lack of challenges in job
 The job or workplace was not as expected
 The Mismatch Between Job and Person
 Too Little Coaching and Feedback
 Lack of support
 Stress From Overwork and Work-Life Imbalance
 Loss of Trust and Confidence in Senior Leaders
 Less frequency in giving rewards

6. Consequences of Labour Turnover
Negative Consequences (results)
• Recruitment and Selection costs
• Training and Development Costs
• Operational Disruption
• Demoralization of Organizational membership
Positive Consequences (results)
• Increased Performance
• Gaining Fresh Ideas
• Improving Diversity & organisational culture

7. Absenteeism
• Each employer/any organization expects employees to be
present in work place as per timings or schedule fixed for
the purpose
• Any deviation from the fixed time reporting entails loss to
the organization.
• When an employee fails to report for duty on time without
prior intimation or approval, then the employee is marked
as “absent”.

8. Features of Absenteeism
• The rate of absenteeism is the lowest on pay day
and increases considerably on the days following
the payment of wages and bonus.
• Absenteeism is generally high among the
workers below 25 years of age and those above
40 years of age.
• The rate of absenteeism varies from department
to department within an organization. Generally it
is high in the production department.
• Absenteeism in traditional industries is seasonal
in character.

9. Causes of Absenteeism
• Maladjustment with the Working Conditions
• Social and religious Ceremonies
• Unsatisfactory Housing (conditions at the workplace)
• Industrial Fatigue
• Unhealthy Working Conditions
• Poor Welfare Facilities
• Alcoholism
• Unsound Personnel Policies
• Inadequate Leave Facilities
• Low level of Wages

10. Measures to minimize 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.