In: Operations Management
In the organizational terms, the labor turnover also considered as staffing turnover, and it refers to the ratio of the number of employees who leave from the company through dismissal, attrition, or resignation to the total number of employees on the payroll or the pay structure of the organization in the specific period under the corporate law. The term labor turnover is used for measuring employee retention in the organization.
The major factors for the labor retention are due to the dissatisfaction with the job or the work role, remuneration related issues, dissatisfaction with the personnel policies, dissatisfaction with the working environments, hours of the work, working conditions in the organization, etc. The main impact of labor turnover is the instability of the workforce and ultimately in employment. The other causes related to employee turnover in the corporate terms are due to lack of progression or growth, high level of work pressure, lack of feedback mechanisms, and little sense of opportunity to make the decision making.
The social and economic causes of the labor turnover may also be analyzed into the segment of avoidable, manageable, or controllable causes and these are unavoidable or uncontrollable causes in other norms. The labor turnover can reduce with the help of proper planning and techniques to incorporate policies and human resource management principles. The management has to oversee the operations and activities like hire the right kind of workers, keep the compensation and pay structure based on the current market standards, offer flexibility in work timings and holidays, pay more attention to the engagement, and encourage generosity and gratitude.