ABSENTEEISM AND LABOUR TURNOVER CHAPTER | ABSENTEEISM Meaning : Employee's presence at work place during the scheduled time is highly essential for the smooth running ofthe production process in particular ad the organisation n general. Despite the significance of their presence, ‘employees sometime falto report atthe work piace during the scheduled time, ‘which is known as ‘absenteeism tour Buroau, Simla, dfined the term ‘absenteeism’ as the fallure of a worker to report for work when he is cpeduled to work:” Labour Bureau also states that “absentesism isthe total man-shilts lost because of absence as a percentage ofthe total number of man-shifts scheduled to work” ‘According to Websters Dietionary, “absenteeism isthe practice or habit of being an ‘absence’ and an absentee is one who habitually stays away". ‘Types of Absenteeism ‘Absenitesism is of four types viz.: (i) authorised absenteeism (i) unauthbrised absentéeism, (i) whiful “absontocisin, and (iy) caused by circumstances beyond one’s control () Authorised absenteeism: fan employee absents himself from work by taking permission from his superior and applying for leave, such absenteeism is called authorised absenteeism. (i) Unauthorised absenteeism: tan employee absents himsel fort ;work without informing or taking permission and without applying for leave, such absentecismis called unauthorised absenteeism. Wilttul absenteetem: I an employee absents himself from duty wilfully, such absenteeism is called willful absenteeism. (wv) Absenteeism caused by circumstances beyond one's control: if an employes absents himself from duty owing to the circumstances beyond his control ike involvement in accidents or sudden ‘siekness, such absenteeism is called absenteeism caused by circumstances beyond one’s control. Features of Absenteeism Research studies undertaken by diferent authors reveal he following features of absenteeism: (9. Therato of absenteeism is the lowest on pay day, itincreases considerably on the days following the payment of wages and bonus. (i)_Absonteeismis generally high among the workers bolow 25 years ‘of age and those above 40 years of age.Personnel and Human Resource Management (ii) The rate of absenteeism varies from department to department within an organisation. Generally, it's high in the production department. (iy) Absenteeism in traditional industries is seasonal in character. Calculation of Absenteeism Rate ‘Absenteeism can be calculated with the help of the following formula Numberof Man-dayslost ———r——rrrr x 100 Number of Man- daysscheduledto work Absenteeism Rat Absenteeism rate can be calculated for different employees and for different time periods like month and year. The frequency rate reflects the incidence of absence and is usually expressed as the number of separate absence in a given period, irrespective of length of absences. The frequency rate represents the average number of absences per worker in a given period. Total number of times which the leave was availed —E——_—_— rT x 100 Total number of man - days scheduled to work Frequency Ra Severity Rate: Severity rate is the average length of ime lost per absence ands calculated by using the following formula: Total number of days absent duringa period —_———~— — x 100 Total number of times absent during that period Severity Rat Anhiigh severity rate indicates that the employee is absent for longer durations each time. High frequency and severity rates indicate that the employee is absent more frequently and for longer durations each time, resulting in high absenteeism even in absolute terms. ‘Causes of Absenteeism The following are the general causes of absenteeism: (i) Matadjustment with the working condition: : Ifthe working conditions of the company are poor, the ‘workers cannot adjust themselves with the company's working conditions. Then they prefer to stay away from the company. jous ceremonies: Social and religious functions divert the worker's attention from (iil) Unsatisfactory housing conditions at the work place. (iv) Industrial fatigue: The industrial fatigue compels workers to remain outside the work place. (Unhealthy working conditions: The poor and intolerable working conditions in the factories irritate the workers, Excess heat, noise, either too much or too low lighting, poor ventilation, dust, smoke etc., cause poor health of the workers. These factors cause the workers to be absent. (vi) Poor welfare facilities: Though a number of legislations concerning welfare factties are enacted many organisations fail to provide welfare faciities. This is either due to the poor financial position of the ‘companies or due to the exploitative attitude of the employer. The poor welfare facilities include poor sanitation, washing, bathing, first-aid appliances, ambulance, rest rooms, drinking water, canteen, shelter, créches et ‘The dissatisfied workers with these facilities prefer to be away from the work place.jenteeism and Labour Turnover (vil) Alcoholism: Workers mostly prefer to spend money on the consumption of liquor and enjoyment getting the wages. Therefore, the rate of absentesism is more during the first week of every month. (vill ndebtedness: Tho low level wages and unplanned expenditure of the workers force them to borrow vily. The research studies indicate that workers borrow more than 10 times of their net pay. Consequently, kers fail to repay the money. Then they try to escape from the place in order to avoid the moneylenders, this ads to absenteeism. (ix) Maladjustment with the Job demands: The fast changing technology demands higher level skills yn the workers. Some workers fail to meet these demands due to their lower level education and/or absence raining. (x) Unsound personnel policies: The improper and unrealistic personnel policies result in employee “dissatisfaction. The dissatisfied employee in tum prefers to be away from the work. (xi) Inadequate leave facilities: The inadequate leave faciities provided by the employer forces him to depend on E.S.I. leave which allows the workers to be away from the work for 56 days in a year on halt pay. | (xll) Low level of wages: Wages in some orgnisations are very poor and they are quite inadequate to | meet the basic needs of the employees. Therefore, employees go for other employment during their busy ‘seasons and eam more money. Further, some employees take up parttime jobs. Thus, the employees resort ~ tomoonlighting and absent themselves from work. Categories of Absenteeism KN. Vaid classifies chronic absentees into five categories viz. @ Entrepreneurs (i) Status seekers Epicureans (w) Famiy-orientedand (The sick and the old (i) Entrepreneurs: This class of absentees considers that their jobs are very small for their total interest and personal goals. They engage themselves in other social and economic activities to fulfil their goals. (ii) The status seekers: This type of absentees enjoys or perceives a higher ascribed social status and is keen on maintaining it. (iii) The Epicureans: This class of absentees does not like to take up the jobs which demand initiative, responsibility, discipline and discomfort. They wish to have money, power, status but are unwilling to work for their achievement. (iv) Family-orlented: This type of absentees is often identified with the family activities. (v) The si and old: This category of absentees is mostly unhealthy, with a weak constitution or old people. Measures to Minimise Absenteeism ‘Absenteeism affects the organisation from multiple angles. It severely affects the production process and the business process. The effect of unauthorised absentevism is more compared other types of absenteeism. However, it would be difficult to completely avoid absenteeism. The management can minimise absenteeism. ‘The following measures are useful in controlling or minimising absenteeism (@ Selecting the employees by testing them thoroughly regarding their aspirations, value systems, responsibilty and sensitiveness.Personnel and Human Resource Management (Adopting a humanistic approach in dealing with the personal problems of employees. (il) Following a proactive approach in identifying and redressing employee grievances. (iy) Providing hygienic working conditions. (Y)_ Providing welfare measures and fringe benefits, balancing the need for the employees and the ability ofthe organisation. (¥) Providing high wages and allowances based on the organisational financial positon. (vi) Improving the communication network, particularly the upward communication. (vil) Providing leave facility based on the needs of the employees and organisational requirement. (is) Providing safety and health measures. (%) Providing cordial human relations and industrial relations. (x) Educating the workers. (xi) Counselling the workers about their career, income and expenditure, habits and culture. (xii) Free-tlow of information, exchanging ot ideas, problems etc. between subordinate and superior. (xiv) Granting leave and financial assistance liberally in case of sickness of employee and his family members. (7) Offering attendance bonus and inducements. (xv) Providing extensive training, encouragement, special allowances in cash for technological advancements, l LABOUR TURNOVER Employees who are not satisfied with their careerin the present organisation may seek suitable employment in other organisations. Similarly, organisations may also prefer candidates from external sources, i the intemal candidates are not found suitaple. This situation in career deyelopment of both the individuals and the organisations result in external mobility or mployee tuinover. Externaf mobility is also known as ‘external career. Meaning External mobility means shitting of employees into and out of an organisation. It is defined as the rate of change in the employees of an organisation during a definite period, It measures the extent to which old employees leave and new employees enter into an organisation. Types of Labour Turnover External mobility is of two types, viz, accessions and separations. (i) Accessions: Accessions are additions of new candidates to the existing employees. It includes ‘employment of new candidates, re-employment of former employees, employees called back to work aftor lay- offete. Gi) Separations: Separations mean termination of employment. They are also called employee turnover. They include: * Voluntary quiting or resignations by employees when they are dissatisfied with the present job andlor organisation, or when they get better employment in other organisations. The expanding business ‘opportunities across the globe created a number of new jobs in software and other high technology industries during 1997-2000. Consequently, the employees working in various organisations resigned their jobs in order to join new organisations (See Box 13.1),ism and Labour Turnover B 190 | POPE Rr oe acd Fp gurvey conducted in USA revealed thet values of employees have changed from organizationa) loyalty to individual ‘loyally. Consequently, job hopping has increased and the trend of employee resignations are 0” higher side, > Layoff or Lack of Work: Organisations terminate the services of employees when the jobs: are eliminated or reduced due to adoption to technology or adverse business conditions or lack of power, materials, breakdown of machinery etc, Globalisation and consequent competition reduced the size of most of the companies and turned many sound companies int sick companies. These factors led to job cuts in many organisations (See Box 13.2). ork French telecommunicaions equipment maker Alcatel downsizes by an adelional 2,500 jobs in USA. This meats 8 reduction of about 16% In ts workforce. Alcatel will also shut dwn its manufacturing faiity in Relelgh, No“ Carolina as ‘another step to reduce costs. Disciplinary Lay-off or Discharge: Organisations terminate the services of employees if they are dissatisfied with the performance or conduct of employees. «Retirement and (v) Deaths: Stages in External Mobily: There are four stages in external mobil, Viz Gxporation, establishment including mutual recruitment, acceptance tothe recruitment conditions, entry, having frstjob assignment settlement, transfer, promotion and granting of tenure, maintenance stage and deciine stage. Computation of External Mobility Rate of external mobility is generally computed in terms of aocession rate, separation rate and composite rate, Their computation formulae are given hereunder. | ‘otal’Accesions per year : Accession Rate = i ——— «100° “ I ‘Average number of employees for the year | Total Separations per year ' SeparationRate = fal Separations per YER ____. x 100 ‘Average number of employees for the year composite ata (Total Accessions per year + Total Separations per year!2 , 499 ‘Average number of employees for the year Sinviayy the rates can be computed separately for diferenttypes of separations like voluntary gutor BY oft: Thediference between accession rate and separation rates indicates the strength of employees and the need for fresh employment “These formulae are useful to compute and compare the rates with those of other organisations for he same period and of the same organisation forthe past years. This comparison shows the rends in mobility wales cd the place of the organisation inthe community in respectof turnover. Further. tshows magnitude of the problem and indicates the effects of external mobility. Effects of External Mobility Certain degree of external mobi is inevitable duc to death, retirement, lay-off andis also desirable as it enables the flow of efficient human resourees into the organisation, But mobility beyond that level confrontsPersonnel and Human Resource Management managers with many inter-related and knotty problems like deployment and re-deployment of human resources ‘among various departments and jobs, increasing cost of re-employment, training, induction and placement, increasing rate of accidents and wastage, declining efficiency of employees and overall productivity etc. Though external mobility is for the betterment of the employee in some cases, it causes problems to employees in many cases. ‘These problems include discontinuation in service, loss of salary, disadvantage in getting various fringe benefits which are tied tothe length of service like quarters, privilege leave, bonus, loss in retirement benefits etc. Personnel managers have to analyse the causes for mobility and find means to control it in view of its adverse effects on the organisation and employees. Controlling External Mobility Personnel managers have to analyse the cause of mobility before suggesting measures to reduce it. The data and information about external mobility can be collected through exit interviews and questionnaires. The data and information should include the reasons for voluntary quits lke better job elsewhere, problems in the present job and organisation like transportation, working conditions, shifts, unsound relations with superior lack of promotional opportunities, lack of facilities to attend family issues etc. They should also cover the jobs, ay scales, working conditions, superiors, departments, plants, regions where the voluntary separations occur. They also cover sex, length of service, functions and place in the organisational hierarchy of employees who leave voluntarily. Data regarding separation due to lay-off and discharge can also be collectedon similar lines Personnel managers have to analyse the data and suggest measures to control external mobility. Measures to contain excessive mobility include improving the pay structures and level on part with those of similar organisations, providing the opportunities for self development and promotional avenues, maintaininy, ‘sound industrial and human relations, adopting effective techniques of recruitment, selection, induction anc’ placement, providing congenial working conditions, creating the facilities and environment to satisly the employee's needs for pride, security, recognition, challenging work, autonomy, achievement, appreciation, status, powerto control etc. ‘The management has to forecast the vuinerable areas of external mobility and apply appropriate measures. In other words, the management need not apply all these reasures to all the situations butt has to.use the most suitable measures to the situation. Reduction of excessive employee mobility by identifying the areas and applying measures is the responsibilty of line executives at all levels in the organisation. The management at the top level formulates the policies regarding minimisation of mobility with the help of top level personnel managers. Personnel officers, help counsel with the line managers at the middle and lower levels in respect of forecasting the mobility, identifying vulnerable areas and in applying measures. | QUESTIONS FOR DISCUSSION (1) What is absentooism? Explain the typos and features of absenteeism, (2) What are the causes of absenteeism? Suggest the measures to mi (3) What are the different types of labour turnover? (4) Why do companies control labour turnover? (6) Explain the methods of controling labour turnover. Bw &