EMPLOYEE TURNOVER

B. Durga Teja 100103081, ECE-B

What is Employee Turnover?

Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees

In human resources context, turnover or staff turnover or labour turnover is the rate at which an employer loses employees
Measure of how many employees leave in a definite time period

Also described as "how long employees tend to stay" or "the rate of traffic through the revolving door"

Importance
High turnover may be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers High turnover relative to its competitors means that employees of that company have a shorter average tenure than those of other companies in the same industry

Measuring employee turnover can be helpful to employers that want to examine reasons for turnover or estimate the cost-to-hire for budget purposes

Turnover vs Attrition
General definition: Turnover occurs when the employment relationship ends

Attrition refers to the end of the employment relationship due to

Retirement Job elimination or

Employee death

Distinguishable from turnover because when attrition occurs, the position is not filled with a new employee

Types of Turnover
Internal vs External
Internal turnover employees leaving their current positions and taking new positions within the same organization External turnover employees leaving organization altogether

Voluntary vs Involuntary
Voluntary turnover initiated at the choice of the employee
Involuntary turnover initiated by the employer due to poor performance or reduction in force (RIF)

Causes
Avoidable
Dissatisfaction with wages and rewards Dissatisfaction with working conditions Unavoidable Personal betterment Family circumstance Climatic condition Community condition Health condition Marriage (especially for women)

Dissatisfaction with personnel policies

Dissatisfaction with job

Other related factors

Cost of Turnover
Inefficiency of new worker Employment department Training and induction Cost of tools and machine breakage Accident frequency and severity Cost of scrap and defective work

CASE STUDY Employee Turnover in Indian IT Industry (chennai-city)

The Indian IT Industry

The information technology (IT) sector in India holds the distinction of advancing the country into the new-age economy. The growth momentum attained by the overall economy since the late 1990s to a great extent can be owed to the IT sector , well supported by a liberalized policy regime with reduction in telecommunication cost and import duties on hardware and software. Perceptible is the transformation since liberalization India today is the world leader in IT and business outsourcing. Correspondingly , the industrys contribution to Indias GDP has grown significantly from 1.2% in 1999-2000 to around 4.8% in FY06. The sector has been growing at an annual rate of 28% per annum since FY01.

Findings From Study

The demographic factors in the study reveals that the major respondents are male 58% , the maximum belong to 2030 years i.e. 35% ,and the majority of them belongs to Executive level i.e.61% and the majority of respondents experience Is below 5 years and monthly income earned by majority of respondents belongs to above 10,000 i.e.33% and the majority of the respondents qualification belongs to undergraduate i.e.34%. The comparison between the working condition of employees in the organization and the workload of employees reveals that the result of t test is not significant to each other. Hence the work load and working condition does not coincide

 The relationship between the co-workers relationship and top management personnel was analyzed using f test reveals that both had an equal variation. This states that both the samples are equal variant among themselves.

Conclusion
The HR department must take care below things to reduce Employee Turnover in industries Pay problem The induction crisis Employee leaving due to conflict Employee leaving to further their career Use of exit interview Working hours and environment Workers participation

Reference
ANNUAL SURVEY OF INDUSTRIES, 2002-03 Vol. II REPORT ON ABSENTEEISM, LABOUR TURNOVER, EMPLOYMENT & LABOUR COST.(Labour Bureau Government of India) published by Balram, Director General Chandigarh,8th December, 2005.