Labor turnover refers to employees leaving and joining an organization. It can be voluntary, like employees choosing to leave, or involuntary, like being fired. High turnover increases recruiting and training costs. Factors influencing turnover include compensation, training opportunities, management quality, and work-life balance. Absenteeism is when employees fail to report to work as scheduled without approval. It is influenced by work conditions, wages, and personal issues. High turnover and absenteeism negatively impact costs and productivity but can occasionally improve diversity and performance. Organizations should select suitable employees, address grievances, and provide competitive benefits to reduce turnover and 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.