What is Labour Turnover?
The movement of persons into employment (hirings) and out of positions (separations) during a given time is referred to as labour turnover.
Labour turnover is the total of job turnover, which refers to the expansion and contraction of establishments or businesses, and worker turnover, which refers to the movement of employees into and out of continuous positions in establishments or firms. Workers leave companies, and firms hire new employees to replace them, regardless of whether the firm is expanding or contracting.
Labor Turnover Types:
The employees' spontaneity and the impact it has on the company can be used to differentiate labour turnover.
Voluntary: When a worker leaves an organization freely, i.e., the person resigns from their employment position owing to any of the situations, this is referred to as voluntary labour turnover.
Involuntary: In the event of involuntary labour turnover, management relieves the worker of their obligations. It might be due to several factors, including a failure to follow the rules.
Functional: By functional, we mean that underperforming employees are fired to increase the organization's efficiency.
Dysfunctional: This occurs when highly efficient and skilled employees quit their jobs, causing the organization's general functioning to suffer.
Labor Turnover Causes:
- Inadequate Working Conditions
- No job security
- Dissatisfactory Wages and Benefits
- No retirement benefits.
- Scarce Medical Services
- Inadequate Health and Safety Measures
- Inadequate Transportation
- Unhealthy Relationships with Labor Unions Preventable Causes Disagreement with supervisor or coworkers
- Migration of Families
- Ensured Job Possibility
- Domestic Concerns
- Disciplinary Reasons for Discharge
- Working Conditions Dissatisfaction
Strategies for Reducing Labor Turnover
Work on the Interpersonal Relationships of the Company Wage and Allowance Policy Revision
Improve Personnel or Human Resources Policy
Emphasize non-monetary benefits
Conduct Exit Interviews
Improve Working Conditions
Implement Adequate Labor Welfare Measures
Create a Reward System Based on Performance
Value Employee Suggestions Improve the Grievance Resolution Procedure
Impartial and Fair Treatment
Create Promotional Opportunities