Answer the following 15-mark question “A business is suffering from high labour turnover and absenteeism. Evaluate the potential causes of their high turnover & absenteeism and how they might reduce them. Labour turnover refers to the number of employees who leave and join an organisation over a specified time period, for example over a year. Having a high rate of labour turnover can lead to many causes such as having low levels of motivation within workforce, recruiting and selecting the wrong employees in the first place, meaning they leave to look for other suitable jobs and in addition costing them a lot of money for those who are lost in production, in training the newly recruited staff and possible potential loss of sales. If a business is also suffering from high absenteeism it means there are a lot of days being lost as a result of employees taking those days off for deliberate or habitual reasons. This can lead to finding other staff to cover for shifts or losing a potential member of staff due to medical reasons or maturity leave. To reduce or avoid labour high labour turnover the business might want to consider interviewing candidates carefully not just to ensure they have the right skills but also that they fit in well with the company are bring a good source of motivation amongst the rest of the staff. The business might also want to create flexibility with work schedules and the ways they give out promotions and bonuses as this will encourage staff to take fewer days off and therefore the rate of absenteeism is likely to decrease. Also, ensuring that employers are getting recognition and praise is a way to maintain a happy, productive work force, this will reduce the high labour turn over but also, reduce absenteeism as it would lead to staff being highly motivated and therefore enjoy coming to work and only take days off occasionally.
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