24982932 Labour Turnover Absenteeism

7/29/2019 24982932 Labour Turnover Absenteeism

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LABOR MARKET :-

The market in which workerscompete for jobs and employers compete for

workers. It acts as the external source from which

organizations attract employees. These markets

occur because different conditions characterize

different geographical areas, industries,occupations, and professions at any given time.


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Labor Market Related Terms

1- Labor Market:

A labor market is defined as a pool of all potential workers whocompete for jobs. It also includes the employers who compete for

workers. Labor markets are based on the supply and demand of

labor in a country or a specific location that are able and willing to

work.

2- Labor Force:

Labor force includes all persons classified either as employed or

unemployed during a specified period of time, usually a day or aweek. Labor force can be categorized as self-employed, wage

and salary earners, casual workers and unemployed.


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3- Casual Workers:

Casual workers are those workers who are generally employed by

small entrepreneurs on daily or weekly basis on a low wage rate.They are not entitled to any paid holiday leave or paid sick leaves.

4- Unemployed persons:

The persons in the labor market who are without work, that is,without paid employment or self-employment and are currently

either available for work or are seeking any work are considered to

be unemployed.

5- Employment rate:

It is ratio of employed persons to the total labor force. It is the

percentage of working age people who have jobs or are employed.


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6- Labor force participation rate:

It is the number of persons in the labor force as a percentage of the working-age

population. The working-age population is the population above a certain

reference age like 15 years old and over or 15

64, etc

7- Unemployment rate:

It is the ratio of unemployed people to the total labor force

8- Underemployed persons:

who are employed, but not in the desired capacity, whether in terms of

compensation, hours, or level of skill and experience. The skills of such persons

are underutilized, for example paying low wages to a highly skilled employee.

Underemployment also refers to a situation where a major portion of labor force

is unemployed.

9- Underemployment rate:

It is the ratio of underemployed to either total labor force or total employment.


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Labor Market in India

The Indian labor market can be categorized into three sectors:

Rural workers, who constitute about 60% of the workforce Organized of the formal sector, that constitutes about 8% of the

workforce.

Urban unorganized or informal structure which represents the 32% of

the workforce.

Categories of Labor force

Self Employed Workers

Wage And Salary Earners

Casual Workers

Unemployed Workers


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Estimated Increase In Labor Force

The chart below describes the estimated increase in the number of labors from

1977-78 to 2004-05. The labor force has grown from 276.3 million to 385.5million between 1977-78 and1993-94 showing an annual growth rate of 2.1%.

During the year 1999-2000, the workforce was estimated to be 407 million. In

2004-05 the labor market consisted of 430 million workers and has grown up to

500 million in 2006.


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The Labor Force In Year 2006

It has grown up to 509.3 million out of which 60% are in

agriculture, 12% are employed in industries and theresidual 28% are in services.


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LABOUR TURNOVER :

Turnover means change. A change in the financial

status of an organization is called the financialturnover. A change in the number of employees of an

organization is called The laborturnover

REASONFOR LABOUR TURNOVER:

Avoidable Reasons

(low job satisfaction, low pay, risky or repetitive work

etc.).

Unavoidable reasons


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Methods Used To Estimate Turnover:

Every good organization prepares a report of labor turnover to refer and rectify the

avoidable causes of turnover. Below are methods used to estimate turnover:

Average No. = (No. of employees at start + No. of employees at end) / 2

1- Separation Method/Rate:

(Number of employees separated in a period / Average number of employees in the

period ) * 100

2- Replacement Method/Rate:

(Number of employees replaced in a period / Average number of employees in the

period) * 100

3- Flux Method/ Rate:

(No. of employees separated + No. of employees replaced) / Average number of

employees in the period } * 100


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Factors could be the cause of a high level ofLabour Turnover :

a) Dissatisfaction on account of insufficient wages leading

to employees moving to competitors

b) Low level of motivation from employers side and

poor morale within the workforce in a specific industry.

c) Recruiting and misplacement of employees resulting

in their mobility in search of suitable employment.

d) A floating local labour market offering better

and more attractive opportunities to employees.


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HOW TO REDUCE LABOUR TURNOVER

Following action may be taken to reduce labour turnover:

Pay Problem

increasing pay scale & improving pay structure toremove inequities

Employees Learning to further their Career providing better

career opportunities& ensuring the job, opportunities for training

& development program, implement promotion Employees Leaving due to Conflict more effective procedure for

handling grievances & improving communication, using resolution

& teambuilding techniques, reorganisation of work.

The Induction Crisis improving recruitment & selection process,

ensure job requirement, developing better induction & initialtraining program

Shortage of Labour improving recruitment , selection & training,

intoducing better method of planning & scheduling work smooth

out peak loads.


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PRESENTEEISM

Presenteeism is a term used by human resource

professionals to describe circumstances in which

employees come to work even though they are ill,

posing potential problems of infection and lowerproductivity. When employees go to work sick

they risk infecting their co-workers and will most

likely not be as effective or productive in their

work

Stress


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ABSENTEEISM :

In every organisation an employee / worker has some

definite working hours with certain responsibility (workassigned) and if the worker is not present in their

working hours that called absenteeism in the

organisation.

FACTORS IN ABSENTEEISM :

Moral

Work schedule flexibility

1- Alternative Work Arrangements2. Compressed Work Week

3. Job Sharing, and

4. Telecommuting


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CAUSES OF ABSENTEEISM :

Personal Factors - age, marital status, health, education, hobbies,

extra curricular actitvites.

Work Environment working conditions, ralation with

coworkers & seniors and their attitude

Home Conditionsdistance from residence, mode of conveyance,

family size, family problems & responsibilities

Economic Issuessubsidiary economic interests

Regional Aspectslegislations, politics, geographical situations

Organisational Features type & size of company, work load,

nature of work, shift arrangements, management attitude,

personnel policies, leave facilities and medical benefits

Social Reasons religion, community obligations, customs

festivals, marriage and death

24982932 Labour Turnover Absenteeism

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