Statutory requirements chapter2
- 2. Statutory Requirements Related to Labour Cost Labour Turn over Definition :- “Labour turnover is the rate of change in the working staff of concern during a definite period. It is the measure of the extent to which old workers leave and new worker enter the service of concern in given period”
- 3. Cause of labour Turnover Major Causes are divided into 3 categories 1. Personal Causes 2. Avoidable Causes 3. Un-Avoidable Causes
- 4. Personal Causes Lack of interest in the work. Higher Salaries and wages outside Family commitments Health problem, Cickness,old age Death and retirment Marriage
- 5. Avoidable Causes Lower pay and Allowances. Long and odd of work. Lack of job satisfaction. Unhappy with co-workers and supervisor. Dispute with trade union. Odd recruitment policy. Facilties of recreation lacks Promotion methods
- 6. Un-Avoidable Causes Retrenchment due to seasonal trade. Discharge by long absentisment. National or state emergence services War Expansion and development Rationalization of industry by automation and comuterisation.
- 7. Cost associated with labour cost Cost of labour turnover are classified :- Prevention Cost:- Eg:- Personal Adminsation ,Cost of welfare ,schemes, other incentive schemes ,pension,bonus,high wage plans 2. Replacement Cost:- Cost for training of new employee,losses,wastage ,lose of productivity .
- 8. Index of Labour Turnover Important indices of labour turnover 1. Separation Index 2. Replacement Index 3. Flux Index
- 9. Separation Index The number of workers leaving the oranisgation as compared to average number of workers in given period is consider . Separation Index= No.of separation in a given period *100 Average No. of worker in given peroid
- 10. Replacement Index The number of worker replaced at the vacant position of the organisation as compared to the average number of workers in given period is consider . Replacement period = No.of replacement in given period * 100 Average no.of worker in given period
- 11. Flux Index The addition of the number of worker leaving the organization as well as the number of new worker replacement them, as compared to the average number of workers in given period is consider . Flux Index= no. of separation in given period + no. of replacement in given period * 100 Average no.of worker in a given period
- 12. Impact of Labour Turnover Cost Increase cost of selection and training new workers. Delay in production. New worker efficiency. Decrases in overall production.
- 13. Measures to controlling labour turnover Right Person for Right Job Conducting employee orientation & induction programmes. Improvement in the working conditions. Providing fair wages and wage incentives. Promotion by merit and Promotion within. Labour particaption in Management. Maintenances of “job Interest” & Job Satisafaction. Effective commnuication throughout the business at all levels.li
- 14. Labour Cost Benefit Analysis important To increase the effeces of the employee. Increase the production in organization. Retain the employee in organization. Health relationship among employee and employer .