Labor turnover refers to the rate of change in the workforce of an enterprise during a given period of time. It has been defined as time to time changes in the composition of the workforce that result from hiring, firing, and replacement of employees.
CAUSES OF LABOR TURNOVER
Employees either leave the company on their own or they are terminated. Therefore labor turnover arises due to avoidable and unavoidable reasons as follows,
- Employee Oriented Causes
- Employer Oriented Causes
01. EMPLOYEE ORIENTED CAUSES
These are caused because of the avoidable and unavoidable factors of the employee himself, some of them are as follows.
(a) Avoidable Causes are the causes which can be avoided by the employee if he is motivated by work. Some of the avoidable causes are as follows,
- Dislike of work
- Desire for better job
- Incompetence, etc.
(b) Unavoidable causes are the causes which cannot be avoided by the employee, some of them are as follows,
02. EMPLOYER ORIENTED CAUSES
These are caused from the side of the employer or management of the organization. Here the causes can be divided into avoidable and unavoidable causes as follows,
(a) Avoidable causes are the causes can be avoided by the management of the organization, some of them are as follows,
- Poor Manpower planning
- Promotion policy
- Low pay
- Poor working conditions
(b) Unavoidable causes are the causes which cannot be avoided by the employer, some of them are as follows,
- Seasonal nature of business
- fear of mechanization, etc.