Meaning, Causes and Methods of Labour Turnover

CONTENT OF CAUSES OF LABOUR TURNOVER
1. Meaning
2. Causes of labour turnover
3. Methods of labour turnover
4. Download PPT

PPT OF THIS TOPIC IS AVAILABLE AT THE END OF THIS TOPIC

1. Labour Turnover Meaning with example

Labour turnover:– It refers to the rate at which employees leave employment.

The Labour turnover can be evaluated by relating the number of employees leaving their employment during a period of time to the total or average numbers employed in that period.

Example:
Let us assume that in a factory there were 1,000 employees on average during the year 2018 and 100 persons left the company during this period. So, the labour turnover will be 100*100/1000 = 10%

Similar Post- Study Notes and PPT for Labour Cost are available- Labour Cost and Methods

2. Causes Of labour turnover

• Avoidable causes
  1. Lower wages
  2. Bad working conditions
  3. The unsympathetic attitude of the management
  4. Lack of opportunities for promotion
  5. Lack of proper training
  6. Improper manpower planning
  7. Lack of proper incentives
  8. Bitter relationship between management and workers
  9. Lack of conveyance, accommodation, medical and educational facilities
     
• Unavoidable causes:
  Sometimes workers have to leave the organization because of management requirements and administrative actions. They also leave the employment of their own will, that is, for personal reasons
  • Administrative causes:
    1. Termination of service due to indiscipline, insubordination, bad conduct, etc.
    2. Retrenchment or lay-off due to shortage of resources, low demand for recession.
  • Personal causes:
    1. Change for a better job;
    2. Death;
    3. Retirement due to old age;
    4. Change for better working conditions, better environment;

3. Methods & Formulas of Labour Turnover

Its rate can be measured by the application of any one of the following three methods:

(I) Separation method= Separation is used when you only need to find out how many employees left the company.

( No. of separations during the period * 100 ) / (Avg. no. of workers in the period )

(ii) Replacement method: the replacement method helps to find out how many workers have been replaced,

( No. of workers replaced during the period * 100 ) / ( Avg. no. of workers in period )

(iii) Flux method: The flux method aids people to calculate exact labour turnover which includes workers who have been replaced + left.

( No. of separations + No. of replacements * 100 ) / ( Avg. no. of workers in period )

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