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Employee Absenteeism and

Turnover
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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
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Cost of Absenteeism
Productivity Administrative Financial
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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
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Administrative Costs
Increased supervisory and administrative costs in
the monitoring and management of absenteeism
programme

Increased costs associated with securing
replacement staff
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Financial Costs
Salary costs for new or replacement staff

Overtime payments


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Causes of Absenteeism
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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
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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

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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
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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.
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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.
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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


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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
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Causes of Job Dissatisfaction
Pay and
benefits
Nature of
the work
Supervisors
and coworkers
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A Model of the Turnover Process
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Calculation of Turnover
Turnover calculation

Number of separations during the month
Total number of employees at the mid month
x
100
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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
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Reference
1. Human Resource Management ;Snell &
Bohlander ,India Edition
2. Human Resource Management Concepts and
Cases ;T N Chabbra