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Labour Turnover-Meaning, Causes and Methods

The document discusses employee turnover, defined as the rate of change in an organization's workforce. It outlines avoidable causes of turnover, such as job dissatisfaction and poor working conditions, as well as unavoidable causes like retirement and illness. Additionally, it explains various methods for measuring labor turnover, including the separation method, replacement method, and flux method.

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433 views13 pages

Labour Turnover-Meaning, Causes and Methods

The document discusses employee turnover, defined as the rate of change in an organization's workforce. It outlines avoidable causes of turnover, such as job dissatisfaction and poor working conditions, as well as unavoidable causes like retirement and illness. Additionally, it explains various methods for measuring labor turnover, including the separation method, replacement method, and flux method.

Uploaded by

ommungarwadi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Rosary College of Commerce & Arts

Navelim, Salcete- Goa

Meaning, Causes & Measurement of Employee Turnover

Asst. Prof. Shelley Mendes


Rosary College of Commerce & Arts
Labour Turnover
• In all business organisations, it is a common feature that
some workers leave the employment and new workers
join in place of those leaving. This change in work force is
known as labour turnover.
• Labour turnover is thus defined as the rate of change in
the composition of labour force in an organisation.
Causes of Labour Turnover
• Avoidable causes

• Unavoidable causes
Avoidable Causes
• Dissatisfaction with job
• Dissatisfaction with wages
• Poor working conditions
• Unsuitable working hours
• Non co-operative attitude
Avoidable Causes
• Lack of promotions
• Unfair method of promotion
• Unsympathethic attitude of management
• Inadequate job security and retirement benefits
• Lack of medical facilities, transport facilities etc.
Unavoidable Causes
• Death or retirement
• Illness or accident
• Discharge on disciplinary grounds
• Retrenchment or lay off due to low demand or
seasonal nature of business
Unavoidable Causes

• Marriage- particularly in case of women workers


• Personal betterment
• Personal dislike for job or environment
• Termination of service due to misbehavior, indiscipline,
etc.
Measurement of Labour Turnover
• To facilitate comparison between different periods and
different undertakings, labour turnover is expressed as a
rate.

• Following are the methods of measurement:


1. Separation method
This method takes into account only those workers who have left
during a particular period.

Labour turnover = No. of workers who have left


rate during a period
Average no. of workers during X100
the period
2. Replacement Method
This method takes into account only those new workers
who have joined in place of those who have left.

Labour turnover = No. of workers replaced


rate during the period
Average no. of workers during X100
the period
If new workers are engaged for expansion
programme or any other such purpose, they are not
considered for this computation.
3. Flux Method
This shows the total change in the composition of
labour force due to separations and replacement of
workers.
Labour turnover = No. of workers No. of workers
who left + replaced
Average no. of workers during X100
the period
Thank
You

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