|
Explain labour turnover, its cause and cost.
Labour turnover indicates changes in labour force, showing highly increasing trend or highly decreasing trend. High labour turnover shows reduction in labour productivity and increase in costs. Too low labour turnover may be due to the inefficient workers who do not like to leave the organization.
Causes of Labour Turnover:
- Dissatisfaction with job
- Dissatisfaction with the remuneration
- Dissatisfaction with the hours of work.
- Relationship with supervisors and workers.
- Illness or accident
- Move from locality
- Discharge
- Death
- Retirement
- Betterment
Costs of Labour Turnover:
- Preventative costs are incurred by the organization to keep the workers happy and discourage them from leaving the job. Such costs include: Cost of Personnel Administration, Cost of Medical services, Cost of welfare service and other incentive schemes
- Replacement costs are incurred for recruitment and training of new workers. This includes costs like inefficiency of new workers, training costs, inexperience of new workers, loss of output due to delay in getting new workers, increased spoilage and defectives, cost of selection and placement.
|
