LABOUR

TURNOVER

Subin S4 MBA

DEFINITION
Labour turnover is the term used to describe the movement of people into and out the organization. It implies the departure and replacement of labour.

MEASURING LABOUR TURNOVER

No. of employees leaving during a period Average number of employees in the period x 100

It is to be noted that a high rate of labour turnover means that people leave after a short time.

METHODS FOR CALCULATING LABOUR

TURNOVER

Flux Method = (Number of separation + Number of replacements) / Average number of workers x 100

Separation Method =(Number of separation / avg no of workers) x 100 Replacement Method = (Number of replacement / avg no of workers) x 100

REASONS FOR LABOUR TURNOVER

Separation

due to management action separation

Involuntary

Voluntary

separation

CONSEQUENCES OF HIGH LABOUR

TURNOVER
Lost

production while the post is not filed Lost production during training period Cost of recruitment and training Cost of training made by the trainee Problem of adaptation which leads to declining productivity Leaving cost Loss of goodwill

STRATEGIES TO LOWER LABOUR

TURNOVER
Improve

the process of employee selection Improve working conditions and pay Demonstrate that promotion prospects exist Adopt a more flexible style of management and improve communication flow Encourage worker participation

THANKS