LABOUR

TURNOVER
S.A. BILAL MALICK(LO871)
M. RAHUL(L0833)
G. RAMAKRISHNAN(L0863)
S.R. SAI RAM(L0821)
S. SHUBBRAMANIAM(L0809)
R. KARTHIKEYAN(L0869)
 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”

Turnover or labour turnover is the rate at
which an employer gains and loses employees ie.
“ How long employees tend to stay”.



CAUSES OF LABOUR TURNOVER:

Ø Reduced quality of work because of discontinuance of business,
changed Industrial process, seasonal fluctuations in relation to
volume of business and Industrial depression etc. were some of the
reasons for occurrence of labour turnover.

Ø
Ø The nature of work, low wages, poor working conditions, less
opportunities for advancement and so on also create the problems
of labour turnover.

Ø
Ø Bad relations of workers with the management also cause labour
turnover. When the management is not satisfied with the
performance of the employee, it takes disciplinary actions against
them.
ØSome times workers involve the activities of union. In many situations
these union base activities of the workers create conflict with the
management. Due to that reason labour turnover occur.
Ø
ØLabour turnover may be occur due to the poor health of the employee,
accidents, death, superannuation etc. which are the personal problems
of employees.
Ø
ØSome employees have always focus on getting attractive job in any
other Industry due to their unsatisfied condition in the current
Industrial environment. These will lead to the labour turnover in that
particular industry.
Ø
ØThe bad requirement applied by the management may leads to the
occurrence of labour turnover.
MEASURES TO CONTROL LABOUR TURNOVER:

Ø Analysis of the employee’s records and identification of
dissatisfied categories of employees by the manager is
necessary to reduce labour turnover.
Ø
Ø Identification of the factors or sources influencing
turnover and exit interviews also help the management
to reduce the labour turnover.
Ø

cont…
Ø
ØSeparation of controllable factors from uncontrollable
will be logical to solve reduction of labour dues.
Ø
ØProvision of factory policies, procedures and practices is
necessary for reducing labour turnover.
Ø
ØHaving identified and analyzed the factors, the unit
should chalk out an action plan to remove influencing
factors. This will reduce labour turnover.
Ø
IMPACTS OF LABOUR TURNOVER:
Ø It causes instability in the working environment of an
organization.
Ø
Ø It causes instability in the working environment of an
organization.
Ø
Ø It can affect both the quality as well as the quantity of
production.


cont…
ØAs workers are deprived of the facilities, it reduces
their organizational solidarity and so they move from one
industry to another.
Ø
ØThe experienced workers replaced by the unskilled
workers.
Ø
ØNatural labour turnover due to the death, retirement
etc. are unavoidable.
Ø
HOW TO REDUCE LABOUR TURNOVER?


Following action may be taken to
reduce labour turnover:



Pay Problem – increasing pay scale and improving pay
structure to remove inequities.



Employees Learning to further their Career –
providing better career opportunities and ensuring the
job, opportunities for training and development
program, implement promotion.

cont…
Employees Leaving due to Conflict – more effective
procedure for handling grievances and improving
communication, using resolution and team building
techniques, reorganisation of work.

The Induction Crisis – improving recruitment and

selection process, ensure job requirement, developing
better induction and initial training program.

Shortage of Labour – improving recruitment , selection

and training, intoducing better method of planning and
scheduling work smooth out peak loads.