Causes of labor turnover

Answer 1

Causes of labour turnover A high level of labour turnover could be caused by many factors: • Inadequate wage levels leading to employees moving to competitors • Poor morale and low levels of motivation within the workforce • Recruiting and selecting the wrong employees in the first place, meaning they leave to seek more suitable employment • A buoyant local labour market offering more (and perhaps more attractive) opportunities to employees
EMployees quitting, retiring, getting fired, dying, getting disabled, or abandoning the job.

Answer 2

High labor turnover is invariably associated with inefficiency, inefficiency impacts adversely on profitability. And risingrates of labor turnover seriously impact on efficiency and profitability.

The inefficiencies are due to

• increased recruitment and induction costs.
• higher proportion of staff engaged in 'personnel management' rather than on maximising returns on capital investment, or on exploration, research and/or productivity.
  
• more employees taking more time to reach operational effectiveness.
• ongoing need to train staff again and again. Benefits of previous training lost.
  
• high labor-turnover lowers moral in those that remain. Lower moral is a disincentive to co-operative and efficient working between colleagues.
• management time is increasingly spent on 'personnel/employment' matters rather than on the day-to-day essentials of managing the business and planning for the future.
• the lack of skilled staff means that companies may be unable to respond quickly enough to market opportunities, or to adapt to changing economic realities.
• the increased cost of expensive external expertise (e.g. hired-in professionals) rather than being able to run the business with the accumulated and accumulating knowledge of existing staff.
• the inefficiencies inherent in an incohesive workforce. Good working relationships and mutual understanding takes time and continuity to develop.
• succession planning impossible, making staff development a waste of time, money and effort.
  
• being unable to profit from long and ongoing business relationships with customers and suppliers.
  

Answer 3

# Avoidable Causes: # ## Lack of job satisfaction ## lack of scope for training & promotion ## Bad working conditions ## long hours of work ## lack of facilities for recreation, children's education etc. ## inadequacy of welfare measures ## inhumane attitude of management ## lack of understanding amongst the workers etc. # Unavoidable Causes: # ## Unhealthy atmosphere of the locality ## Retirement & death ## Leaving for a better chance ## In case of seasonal industries, retrenchment during off-season ## Social unrest ## Marriage of female workers ## Disablement due to accident inside or outside or disease Due to political reasons or on the ground of health, change of place