Absenteeism and Labour Turnover
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Transcript of Absenteeism and Labour Turnover
LABOUR TURNOVER
ABSENTISM ,LABOUR TURNOVERAND ITS CALCULATION
ABSENTEEISM
MEANING OF ABSENTEEISMEmployees to be present in work place as per timings or schedule fixed for the purpose .Deviation from the fixed time reporting: Co.s lossWhen an employee fails to report for duty on time without prior intimation or approval, then the employee is marked as absent.
TYPES OF ABSENTEEISMAbsenteeism is of four types: Authorised Absenteeism Unauthorised Absenteeism Wilful Absenteeism Absenteeism caused by circumstances beyond ones controlFEATURES OF ABSENTEEISMRate of absenteeism The lowest --pay day Increases -- on the days following the payment of wages and bonus.Generally high among the workers Below25 years of age Above 55 years of age.Rate of absenteeism varies from department to department within an organization. Absenteeism in traditional industries is seasonal in characterCALCULATION OF ABSENTEEISM RATEAbsenteeism can be calculated with the help of the following formula: Absenteeism Rate Frequency Rate Severity RateCALCULATION OF ABSENTEEISM RATEAbsenteeism Rate Number of man days lost * 100 No. of man days scheduled to work
Frequency RateTotal number of times in which the leave was availed * 100 Total number of man days scheduled to work
Severity Rate Total number of days absent during a period * 100 Total number of times absent during the periodCAUSES OF ABSENTEEISM
Personal Factors
Work Environment
Home Conditions
Regional Aspects
Organizational Features
Social ReasonsCAUSES OF ABSENTEEISM
Personal Factors - age, marital status, health, education, hobbies, extra curricular activities.Work Environment working conditions, relation with coworkers & seniors and their attitudeHome Conditions distance from residence, mode of conveyance, family size, family problems & responsibilitiesRegional Aspects legislations, politics, geographical situationsOrganizational Features type & size of company, work load, nature of work, shift arrangements, management attitude, personnel policies, leave facilities and medical benefitsSocial Reasons religion, community obligations, customs festivals, marriage and deathSOME MEASURES TO MINIMISE ABSENTEEISMSelecting 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 developmentLABOUR TURNOVER
MEANING OF LABOUR TURNOVER
Turnover means change. A change in the financial status of an organization is called the financial turnover. A change in the number of employees of an organization is called The labour turnover
CAUSES OF LABOUR TURNOVERReduced quality of work
Discontinuance of business
Changed Industrial process
Seasonal fluctuations in relation to volume of business Industrial depression
Nature of work
CAUSES OF LABOUR TURNOVER (Contd.)Low wages
Poor working conditions
Less opportunities for advancement
Bad relations of workers with themanagement also cause labour turnover.
Union base activities of theworkers create conflict with the management
Personal problems of employees
Change of jobs----different industry
COSTS OF LABOUR TURNOVER
High rates of labour turnover are expensive in terms of: Additional recruitment costs Lost production costs Increased costs of training replacement employees Loss of know-how and customer goodwill Potential loss of sales (e.g. if there is high turnover amongst the sales force) Damage that may be done to morale and productivity (an intangible cost)
ESTIMATING LTO Every good organization prepares a report of labor turnover to refer and rectify the avoidable causes of turnover. Average No. = (No. of employees at start + No. of employees at end) / 21- Separation Method/Rate: Number of employees separated in a period * 100 Average number of employees in the period2- Replacement Method/Rate: Number of employees replaced in a period * 100 Average number of employees in the period3- Flux Method/ Rate: No. of employees separated + No. of employees replaced * 100 Average number of employees in the period
MEASURES TO CONTROL LABOUR TURNOVER Analysis of the employees records &identification of dissatisfied categories ofemployees by the manager
Identification of the factorsor sources influencing turnover
Exit interviews
Separation of controllable factors from uncontrollable factorsProvisionoffactorypolicies,procedures& practices
Action planto remove influencing factors
ConclusionAbsenteeism and labour turnover are connected
Absenteeism above 5 % very serious
Bad reputation of business leading to drop in sales, lower profits, bad cash flow
Decrease in output
Drop in Market share
Struggle to compete with rival companies
Reduce absenteeism and labour turnover
Introduction of incentive plans
100% attendance awards / benefits
Friendly and healthy formal relationship within the organisations
Involvement of employees in decision making
THANK YOU