1

EmployeeAbsenteeism

Absenteeism

Whenanemployeeisscheduledtoworkfailsto
reportondutyitiscalledabsenteeism
Itisdefinedasunauthorisedabsencefromwork
Meansabsenceofregularworkwithoutprior
permission,noticeorsanction

Causes of Absenteeism

Causes

Natureofwork
Poorworkingconditions
Absenceofregularleavearrangements
Accidents
Absenceoftransportfacilities
Visittonativeplaces
Alcoholismandgamblinghabits
Absenceofstrictdiscipline
Religiousandlocalfestivals

Effects of Absenteeism
Normalworkflowinthefactoryisdisturbed.
Overallproductioninthefactorygoesdown.
Difficultyisfacedinexecutingtheordersin
time.
Overtimeallowancesbillincreases.
Thereisextrapressureofworkontheworkers
whoarepresent.
Workerslosewagesfortheunauthorized
absencefromwork.

Measures to control

Properselection
Properorientation
Betterworkingconditions
Provisionoftransportandhousingfacilities
Incentivestoregularemployees
Disciplinaryaction
Effectivesupervision
Employeecounseling

Calculation of absenteeism rates

absenteeism=
(numberofmandayslostthroughabsence
/numberofmandaysscheduledtowork)x
100
numberofmandaysscheduledtowork=average
numberofpersonsxnumberofworkingdays

Cost of Absenteeism

Productivity
Productivity Administrative
AdministrativeFinancial
Financial

Decrease in Productivity
Absentstaffplaceanextraburdenonthewhole
organization
Timelostinthesourcingandtrainingofnewor
replacementstaff
Moraleandmotivationissuescangreatly
decreasetheproductivityofstaff

10

Administrative Costs
Increasedsupervisoryandadministrativecostsin
themonitoringandmanagementofabsenteeism
programme
Increasedcostsassociatedwithsecuring
replacementstaff

11

Financial Costs
Salarycostsforneworreplacementstaff
Overtimepayments

12

Labour Turnover

13

Labour Turnover
Itmeansmovementofworkersfromoneunitto
anotherorfromoneindustrytoanother.
It may be defined as the rate of change in the
working staff of an enterprise during a definite
period.

14

Voluntary vs. involuntary turnover

Voluntaryturnover
initiatedatthechoiceoftheemployee,
voluntaryturnovercanbepredictedorcontrolledto
anextentbytheconstructofturnoverintent.

InvoluntaryTurnover
wheretheemployeehasnochoiceintheir
termination
longtermsickness,death,movingoverseas,or
employerinitiatedtermination.

15

Causes of Labour Turnover

AvoidableCauses
Lowremuneration
Longhoursofwork
Poorworkingconditions
Badrelationwithsupervisorandfellow
workers.

16

UnavoidableCauses
Personalbetterment
Illnessandaccident.
Housingandtransportproblem
Domesticaffairs,likemarriage,pregnancyin
caseoffemaleemployeesetc.
Deathetc.

17

Cost of Employee turnover

Employeeturnoveriscostlytothecompanyamong
thecostsinvolvedare:

Costofhiring
Costoftraining
Overtimecost
Extraoperatingcosts
Lossofgoodwill

18

Lossofproductionintheintervalbetween
separationofoldemployeeandreplacementby
thenew.
Scrapandwastageratesincreaseswhennew
employeeisinvolved.
Accidentratesofnewemployeesareoften
higher.
Thepayoflearnerisexcessofhisproductivity.

19

A Model of the Turnover Process

20

Controlling turnover

Useofpropertestsandinterviewswhileinterviewing
Impartialpromotionandtransferpolicies
Introducinganattractiveremunerationpackage
Provisionofreasonableamenitiesandwelfaremeasures
Properchannelsofcommunicationtoimprovethe
moraleoftheemployees
Maintainbetterhumanrelationsintheorganisation
Provisionofretirementbenefits