Labor Turnover and How HR Can Control

 

[Figure 1: Dreams Time]

What is Labor Turnover

Overall change in the number of people employed in an organization/entity during a particular period can be define as labor turnover. High labor turnover is not healthy for a company & that could cause even to temporary shutdown the company or creates strikes (Anjali, 2019). It says if can keep employee turnover 15% or less is healthy for an organization/entity (Munns, 2022).

Causes of Labor Turnover

There are two main factors for labor turnover. The factors that’s organization can control can identified as Avoidable causes & factors that not controllable to organization can identified as Unavoidable causes.

Avoidable Causes

The factors are within the organization & related to organization facilities & workplace issue, which management can change to make betterment for employees come under this category.

Such as not appropriate wages, poor working conditions, poor management & unbalance work allocation & more of below can take to this category. Which can turn for betterment of employee by management.   

[Figure 2: The Investor Book]

Unavoidable Causes

The factors that organization cannot control can put under this category, few reasons even employee cannot avoid. Severe accidents, retirement, marriage, death & other personal issue can be under this.

[Figure 3: The Investor Book]

Labor Turnover Effects

Labor turnover has both positive & negative effects to organization always, such as,

Positive Effects

• Talented People – Organization can recruit talented employee against the person who left the company.
• New Thoughts/ Creative Idea – New employee who join can be with other trade experience, might help to come out with new and create ideas rather than who worked long time for same organization.
• Young Employees with more Efficient & Effective – Young recruitments will be more efficient against older employees sometimes and since new people there might be much effectiveness & efficient. 

Negative Effects

• Productivity Drops – When experience employee leave it can severely affect to productivity of the organization.
• Demoralize of Others – Sometime other workers can be demotivating when good & experience workers leave the company for their betterment or due to company issue.
• Cost of Recruitment – cost of recruitment always higher than retention of worker.
• Training & Development – When recruit new members organization has to carryout. training programs & develop programs to improve the skill & also to give awareness of the operation to employee, which is costly.

How HR Department Can Control Label Turnover

Control of label turnover is one of major responsibility of HR department in an organization. It is not much cost but benefitted to the company to retain the employees rather than new recruitments. It can minimize by taking timely decisions, corrective actions & improving human resources policies.

[Figure 4: The Investor Book]

HR needs to play key role when apply these strategies. It is much essential that company HR team has close relationship with the employees as much as possible of their capacity. Which will always help to understand the situation of employee’s personal life & work life & also understand the issues that they are in frustrated and concerns in both areas. This must help HR to act in right way to give solution for employees.

HR responsibility to introduced decent wage packages to employees and maintain equal facilities based on different level of employees. Also, to carryout performance evaluations & revise wages in annually and introduced bonus schemes based on company profitability level. Create opportunities for promotions will be motivate the employees.

In current employee market it is necessary to provide certain facilities to employees, such as medical, insurance, transport, welfare benefits, which help to improve the employee satisfaction & retrain the employees.

Planning of training related to work as well as improve employee living & behavioral standards also more vital, which will give more confident to employees to conduct their job-related works as well as come out to society and move confidently.

Appreciations, look after of employees and arranging of various events, such as fun activities, CR activities can take as non-monetary benefits for workers, which employee can be satisfied with company and get more attract with company.

Conclusion

In general labor turnover is high in private sectors, as mostly employees has more opportunities in market, therefore it is more vital HR to act in correct time correct way to retain the employee work force, at least to maintain the turnover less that 15% to get the competitive advantage to organizations to drive to there targets & goals & this will be one of key KPI of HR team in an organization.

References

Anjali, J., 2019. The Investors Book. [Online]
Available at: https://theinvestorsbook.com/labour-turnover.html
[Accessed 4 April 2022].

Anon., 2022. DreamStime. [Online]
Available at: https://www.dreamstime.com/photos-images/employee-turnover.html
[Accessed 4 April 2022].

Munns, S., 2022. Employee Turnover Rates : An Industry Comparison - Edays. [Online]
Available at: https://www.e-days.com/news/employee-turnover-rates-an-industry-comparison
[Accessed 4 April 2022].