absenteeism “It is the practice of being an Absence and an absentee is one who habitually stays away”

causes Difficult to adjust with the working conditions Difficult to adjust with the working conditions Social and religious ceremonies Social and religious ceremonies Alcoholism Alcoholism Low level of wages Low level of wages Unsound personnel policies Unsound personnel policies Indebt ness Indebt ness Inadequate leave facilities Inadequate leave facilities Industrial fatigue Industrial fatigue Unhealthy working conditions Unhealthy working conditions Unsatisfactory housing Unsatisfactory housing

calculation Absenteeism rate= number of man days lost number of man days scheduled to work * 100 Absenteeism rate= number of man days lost number of man days scheduled to work * 100

Minimizing absenteeism Adoption of suitable recruitment procedure Adoption of suitable recruitment procedure Training and counseling Training and counseling Employee welfare measures Employee welfare measures Good work environment Good work environment Two way communication Two way communication Disciplinary actions Disciplinary actions Leave provisions Leave provisions Prompt redressal of grievances Prompt redressal of grievances

Employee attrition “The rate of change in the working staff of a concern during a definite period, commonly a month” “The rate of change in the working staff of a concern during a definite period, commonly a month”

reasons Employee related factors Employee related factors Organization related factors Organization related factors

Calculation of attrition rate Total seperations during the year Total seperations during the year average number of employees * 100 average number of employees * 100

Retention strategies Exist interview Exist interview Package for long term stay Package for long term stay Intangible benefits Intangible benefits Matching jobs and individuals Matching jobs and individuals Work environment Work environment persuasion persuasion Employee relationship management Employee relationship management

Managing separations and rightsizing Separation means cessation of service of agreement with the organization for one or other reason. Ex: layoffs, resignation and dismissals Separation means cessation of service of agreement with the organization for one or other reason. Ex: layoffs, resignation and dismissals Rightsizing means reducing the size of workforce or increasing it to maintain the employee strength at the most desired level. Rightsizing means reducing the size of workforce or increasing it to maintain the employee strength at the most desired level.

Guidelines to manage rightsizing Consider the human element Consider the human element Freeze hiring Freeze hiring Engage part time employees Engage part time employees Restrict overtime Restrict overtime Implement early retirement programmes Implement early retirement programmes Delay and no pay hikes Delay and no pay hikes

Compensation and benefits administration Meaning: “compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employee to strive for higher levels of productivity” Meaning: “compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employee to strive for higher levels of productivity” “Compensation management refers to payment systems which determine employee wages or salary, direct and indirect rewards” “Compensation management refers to payment systems which determine employee wages or salary, direct and indirect rewards”

Need for sound salary administration Internal equity Internal equity External competitiveness External competitiveness Built in incentive Built in incentive Link with productivity Link with productivity

objectives To establish a fair and equitable remuneration To establish a fair and equitable remuneration To attract competent personnel To attract competent personnel To retain the present employees To retain the present employees To improve productivity To improve productivity To control costs To control costs To improve union management relations To improve union management relations To improve public image of the company To improve public image of the company

Factors affecting wage and salary levels Labour market Labour market Bargaining power Bargaining power Cost of living Cost of living Condition of product market Condition of product market Comparative wages Comparative wages Ability to pay Ability to pay Productivity of labour Productivity of labour Job requirements Job requirements Government policy Government policy Goodwill of the company Goodwill of the company

Salary structure Basic pay Basic pay Bonus Bonus Dearness allowance Dearness allowance House rent allowance House rent allowance City compensatory allowance City compensatory allowance Travel allowance Travel allowance Fixed medical allowance Fixed medical allowance Tiffin allowance Tiffin allowance Conveyance allowance Conveyance allowance Children education allowance Children education allowance Hostel allowance Hostel allowance

Salary fixation Principles of pay fixation Principles of pay fixation Economic position of the country Economic position of the country Cost of living and price level Cost of living and price level State as the model employer State as the model employer Equal pay for equal work Equal pay for equal work Prevailing market rate Prevailing market rate Policy of the government Policy of the government

Wage salary survey It helps W/S administrator to acquire useful and necessary information concerning community rates and practices to have inter industrial equity concept and provide information to design effective W/S structures and wage payment systems It helps W/S administrator to acquire useful and necessary information concerning community rates and practices to have inter industrial equity concept and provide information to design effective W/S structures and wage payment systems

types Commissioned survey Commissioned survey External survey External survey Internal survey Internal survey

process Planning for the purpose Planning for the purpose Selecting sources of data and sample and tools Selecting sources of data and sample and tools Conducting surveys Conducting surveys Analyzing and interpreting data Analyzing and interpreting data Concluding Concluding

incentives An incentive scheme is a plan to motivate individual for good performance. An incentive is built on monetary rewards and also include non- monetary rewards An incentive scheme is a plan to motivate individual for good performance. An incentive is built on monetary rewards and also include non- monetary rewards