Labor Turnover

 Labor Turnover

 

Figure 01: (Miller, 2015)

The number of workers leaving the organization provides information for supply forecasting, allowing calculations to be made on how many people will need to be replaced. Staying on top of the numbers is an important part of running a successful business. Monthly analysis of numerous data points assists a company in tracking profits and spending, as well as identifying trouble areas. Employee retention is measured by turnover measures, which show a red indicator when top talent starts to leave. High turnover has a hefty price tag attached to it. Employers can minimize potential retention challenges by implementing attrition reduction measures when voluntary resignation numbers exceed intended levels.

 

What facts contribute to  labor turnover

 

 

 

 

 

                        Change in location                             Low pay rates

                        Death, retirement                               Temporary employment

                        Unfit for the work                              No job security

                        Sickness, accident                              Heavy work load

Table 01: (Anon., 2021)

Strategies to Reduce Labor Turnover

Labor turnover is an unavoidable feature of any business. It can, however, be controlled if timely action is taken and existing human resource policies are improved.

 

Figure 02: (Lancu, 2021)

Labor turnover Benchmarking

Staff turnover is a critical variable for assessing the success of a human resource management system as well as an organization’s program’s overall management. It serves as a supplement to the prior indicator on important position fill rates. If turnover is high, the organization will have to pay higher fees to hire new employees for things like interviewing, checking references, and providing initial training, among other things. Because human resources account for more than 70% of the funding for reproductive health programs, the retention of qualified employees, or the lack thereof, can have a significant impact on productivity and performance.

Labor turnover rates are an important tool for assessing the effectiveness of companies’ human resource policies and processes. They do not tell the whole story, but if the profit margin is higher than comparable companies, he should find out why this is happening and what can be done about it. Measuring regular information exchange can be done by joining a “community” with other organizations. surveys, as well as the CIPD’s annual labor survey. (Armstrong, 2006)

Conclusion

Employee turnover occurs in every business location and industry. Employee turnover is frequently calculated by businesses as a way of anticipating its influence on production, customer service, and even morale.

References

Anon., 2021. Labour turnover| Causes|Effects|Measures to control. [Online]
Available at: http://www.accountlearning.com

Anon., n.d. Staff turnover rate. [Online]
Available at: http://www.data4impactproject.org

Armstrong, M., 2006. Human Resource Management Practice. London N1 9JN,UK: British Library.

Lancu, S., 2021. 10 Tips to reduce Employee Turnover and retaing top performers. [Online]
Available at: http://www.aihr.com

Miller, N., 2015. 7 ways to fix high employee turnover at your agency. [Online]
Available at: http://www.blog.hubspot.com