Labor Turnover.

Q54. Write short notes about labor turnover:

  1. Meaning, 
  2. Causes,
  3. Effect, 
  4. Cost,
  5. Remedial Measures.


  1. Meaning of Labor Turn Over: It indicates the change in the composition of workforce during a period of time. It arises when workers leave organization or they are discharged by management.
  2. Causes of Labor Turn Over:
    1. Personal Causes:
      1. Change of job for betterment.
      2. Premature retirement due to ill health.
      3. Domestic problem and family responsibilities.
      4. Dissatisfaction over the job and working environment.
    2. Unavoidable Causes:
      1. Seasonal nature of business.
      2. Shortage of raw materials.
      3. Change in plant location.
      4. Disciplinary measure.
      5. Disability making a worker unfit for work.
    3. Avoidable Causes:
      1. Low wages and salaries.
      2. Lack of training facilities.
      3. Dissatisfaction with jobs and working conditions.
      4. Bad relationship with management.
  3. Effect of Labor Turn Over:
    1. Flow of production is distributed.
    2. Increase cost of training and incentives.
    3. Increase breakage of tools, wastage of material etc.
    4. Low efficiency of new workers.
  4. Cost of Labor Turn Over:
    1. Preventive Cost: This include cost incurred to keep the labor turnover at a low level i.e. Medical facilities, welfare scheme etc.
    2. Replacement Cost: These cost which arise due to high labor turnover i.e. Training cost, replacement cost, breakage of equipment etc. If preventive cost is high, replacement cost is low.
  5. Remedial Measures of Labor Turn Over:
    1. Interview of exit worker.
    2. Scientific system of recruitment, placement and promotion.
    3. Job analysis and evaluation before replacement of workers.
    4. Use of committee for handling workers grievance.
    5. Management should provide good working conditions to the workers.

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