1 Employee Absenteeism and Turnover

2 Absenteeism When an employee is scheduled to work fails to report on duty it is called absenteeism It is defined as unauthorised absence from work Means absence of regular work without prior permission,notice or sanction

3 Cost of Absenteeism Productivity Administrative Financial

4 Decrease in Productivity Absent staff place an extra burden on the whole organization Time lost in the sourcing and training of new or replacement staff Morale and motivation issues can greatly decrease the productivity of staff

5 Administrative Costs Increased supervisory and administrative costs in the monitoring and management of absenteeism programme Increased costs associated with securing replacement staff

6 Financial Costs Salary costs for new or replacement staff Overtime payments

7 Causes of Absenteeism

8 Causes Nature of work Poor working conditions Absence of regular leave arrangements Accidents Poor control Visit to native places Alcoholism and gambling habits Absence of strict discipline Religious and local festivlas

9 Measures to control Proper selection Proper orientation Better working conditions Provision of transport and housing facilities Incentives to regular employees Disciplinary action Effective supervision Employee counseling

10 Calculation of absenteeism rates absenteeism= (number of mandays lost through absence /number of mandays scheduled to work ) x 100 number of mandays scheduled to work= average number of persons x number of working days

11 Turnover It refers to the movement of employees out of an organisation Turnover, refers to the characteristic of a given company or industry, relative to rate at which an employer gains and loses staff.

12 Voluntary vs. involuntary turnover Voluntary turnover – initiated at the choice of the employee, –voluntary turnover can be predicted or controlled to an extent by the construct of turnover intent. Involuntary Turnover –where the employee has no choice in their termination long term sickness, death, moving overseas, or employer-initiated termination.

13 Cost of Employee turnover Employee turnover is costly to the company among the costs involved are: Cost of hiring Cost of training Extra labor cost Extra operating costs Loss of goodwill

14 Cost of employee turnover Turnover costs: Separation costs+ Replacement cost+ Training costs Separation costs –Exit interview –Administrative and record keeping action Replacement cost –Advertising for job opening –Preemployment administrative functions –Selection interview –Employment tests –Meeting to discuss with the candidates Training costs

15 Causes of Job Dissatisfaction Pay and benefits Nature of the work Supervisors and coworkers

16 A Model of the Turnover Process

17 Calculation of Turnover Turnover calculation x 100

18 Controlling turnover Use of proper tests and interviews while interviewing Impartial promotion and transfer policies Introducing an attractive remuneration package Provision of reasonable amenities and welfare measures Proper channels of communication to improve the morale of the employees Maintain better human relations in the organisation Provision of retirement benefits

19 Reference 1. Human Resource Management ;Snell & Bohlander,India Edition 2. Human Resource Management Concepts and Cases ;T N Chabbra