Labour Turnover of an organisation is change in the labour force during a specified period measured against a suitable index. The rate of Labour Turnover in an industry depends upon several factors such as, nature of the industry, its size, location and composition of the labour force. A controlled level of
Labour Turnover is considered desirable because it helps the firm to adjust the size of its labour force in response to needs such as for seasonal changes or changes in technology.
Causes of Labour Turnovers:
The causes giving rise to high labour turnover may be broadly classified under the following the heads:
(i) Personnel Causes: Workers may leave employment purely on personal grounds, e.g.,
- Dislike for the job, locality or environments.
- Domestic troubles and family responsibilities.
- Change of line for betterment.
- Retirement due to old age and ill health.
In all such cases, personal factors count the most and employer can practically do nothing to help
(ii) Unavoidable Causes : In certain circumstances it becomes obligatory on the part of the management to ask some of the workers to leave. These circumstances are:
- Retrenchment due to seasonal trade, shortage of any material and other resources, slack market for the product, etc.
- Discharge on disciplinary grounds.
- Discharge due to continued or long absence.
(iii) Avoidable Causes: Under this head, may be grouped the causes which need the attention of the management most so that the turnover may be kept low taking remedial measures. The main reasons for which workers leave are:
- Unsuitability of job.
- Low pay and allowance.
- Unsatisfactory working conditions.
- Unhappy relations with co-workers and unsatisfactory behaviour of superiors.
- Dispute between rival trade unions.
- Lack of transport, accommodation, medical and other factors.
- Lack of amenities like recreational centres, schools, etc.
The above causes may also be classified in a different manner under three heads, viz., Financial Causes, Social and Economic Causes and Psychological
Causes relating to human relationship.