Transcript for:
Labour Turnover Overview

[Music] labour turnover refers to the number of workers that quit their job the workers quit their job for several reasons they may quit their job because they were dismissed by the company they worked for or because they were made redundant another reason workers quit their job is because they found another better job the other reason is that they were no longer motivated to work in the company businesses with high rate of labor turnover suffer from several disadvantages additional training costs new employees must be trained to make them able to perform their tasks induction training on-the-job training and off-the-job training are likely to be used to train them trainers and training materials need to be paid so there will be additional training costs additional recruitment costs advertising job vacancy and hiring recruitment agency create costs to recruitment and selection process time taken to recruit new employees recruitment and selection process is really time consuming the processes can take up to more than one month damage to reputation public will learn that working in the companies is not a good choice the job seekers may be unwilling to apply for the job vacancy available in the business the business will then find it difficult to recruit new employees customers may also be reluctant to buy the products or services from the businesses as they learn the new employees are not well experienced damage to reputation public learn that working in the company is not a good choice the job seekers may be unwilling to apply for the job vacancy available in the business the business will then find it difficult to recruit new employees customers may also be reluctant to buy the products or services from the businesses as they learn the new employees are not well experienced so cannot serve them well reduction in output when a job is vacant it doesn't produce output this leads to reduction in output impact on motivation of other employees the remaining employees will learn that working in the company is not secured they will then not be motivated to work hard and more effectively for the businesses they are also likely to quit their job and find another job with better job security increased workload of the remaining employees job enlargement or job enrichment may be given to them however the employees may not be ready or well trained to perform additional tasks this will result in low output or low quality they may be also unwilling to take more responsibilities and may decide to quit their job impact on motivation of other employees the remaining employees learn that working in the company is not secured they are then not motivated to work hard and more effectively for the businesses they may also quit their job and find another job with better job security increased workload of the remaining employees they may be unhappy with this unless their pay increases as much as the workload job enlargement or job enrichment may be given to them however the employees may not be ready or well trained to perform additional tasks this will result in low output or low quality they may be also unwilling to take more responsibilities and may decide to quit their job hard to maintain quality when less specialized employees are employed to fill in the vacant job they will perform the tasks poorly this will result in low quality the disadvantages become the reasons for businesses especially the human resources department to reduce the rate of labor turnover businesses with low labor turnover enjoy several benefits save time human resources managers can focus on issues other than recruitment issues better reputation this image can help attract qualified workers to apply for the job as they learn the businesses provide good employment lower recruitment costs the businesses do not need to advertise job vacancy this reduces recruitment costs lower training costs this is because the existing workers already know what to do with their job so need for training is low keep expertise or knowledge from the existing employees therefore quality can be maintained you