Labor turnover its effects and cost

Question

Briefly describe the term labor turnover, its Effects and cost?

Answer 1

Labor turnover points to alters in labor force, showing highly growing trend or highly declining trend. High labor turnover illustrates decrease in labor productivity and raise in costs. Too low labor turnover might be because of the inefficient workers who don’t like to leave the organization.

Effects of Labour Turnover :

- Unsatisfied with job
- Unsatisfied with the remuneration
- Unsatisfied with the hours of work.
- Relationship with employees and supervisors.
- Accident or Illness
- Move from locality
- Discharge
- Death
- Retirement
- Betterment

Costs of Labour Turnover :

- Preventative costs are occurred through the organization to stay the workers happy and dishearten them from leaving the job. Such costs consist of: Cost of Medical services, Cost of Personnel Administration, Cost of welfare service and other incentive systems

- Replacement costs are occurred for staffing and training of new workers. This consists of costs such as inefficiency of new workers, training costs, in-experience of new workers, loss of output because of delay in getting new workers, raised spoilage and defectives, cost of placement and selection.