MBA-TEP

Personnel & Industrial Relations

Dr. Lorenzo C. Lorenzo

Presented by:Narciso D. Isidro Jr.

Labor Turnover

• Turnover, in a human resource context refers to the characteristic of a given company or industry, relative to rate at which an employer gains and loses staff.

Cost

Labor 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

Voluntary vs. involuntary turnover • Practitioners can differentiate between

instances of voluntary turnover, initiated at the choice of the employee, and those involuntary instances where the employee has no choice in their termination (such as long term sickness, death, moving overseas, or employer-initiated termination).

• Typically, the characteristics of employees who engage in involuntary turnover are no different from job stayers. However, voluntary turnover can be predicted (and in turn, controlled) by the construct of turnover intent.

Causes of high and low turnover

• High

→ Unhappy with the work

→ Compensation

→ Unsafe/Unhealthy Conditions

• Low

Progressive Disciplinary Plans

1. Verbal warnings– Cautions conveyed orally to the

employee

2. Written warnings– More formal warnings that are given to

the employee in writing and become part of the employee’s permanent record

3. Suspension– Temporary layoff

4. Termination– Employee is fired

A Model of the Turnover Process

Causes of Job Dissatisfaction

Pay and benefits

Nature of the work

Supervisors and coworkers

Tenchu!!!