Effect of Labour Turnover on Organisational Productivity
EFFECT OF LABOUR TURNOVER ON ORGANISATIONAL PRODUCTIVITY
1 INTRODUCTION
The practice of human resource management (HRM) is concerned with all aspects of how people are employed and managed in an organisation (Armstrong, 2009). The strategic business function organ of the organisation sees to the inflow and outflow of employees in the organisaiton. The HRM function of directing the organisation system to ensure that human talents are used effectively to accomplish desired goals is very crucial, thereby not left ignored.
Organisations zealous about growth would always intend to develop their respective current human capital and other potentials. But in this world of frequent upgrade and innovations in the business environment and the technological ways of doing things, organisations would commit themselves towards bringing their workforce to the task requiring intellectual and manual growth and development. The idea behind this would be to intensify the additional productivity generated by extra employee hired. All these put together would amount to organisations being cost conscious in making sure that employees with high human capital do not leave their organisations.
But in order to be realistic, organizations cannot be everything to all people. No matter how great your company is, it is likely that some of your employees will eventually move on to other opportunities. That may be costing you a lot and affecting your well enjoyed stabilized organization productivity.
Labour or worker or employee or staff turnover has it is often referred to, is the number of permanent employees leaving the company within the reported period versus the number of actual Active Permanent employees on the last day of the previous reported period (physical headcount). According to Business Dictionary (2011), the ratio of the number of employees that leave a company through attrition, dismissal, or resignation during a period to the number of employees on payroll during the same
1 INTRODUCTION
The practice of human resource management (HRM) is concerned with all aspects of how people are employed and managed in an organisation (Armstrong, 2009). The strategic business function organ of the organisation sees to the inflow and outflow of employees in the organisaiton. The HRM function of directing the organisation system to ensure that human talents are used effectively to accomplish desired goals is very crucial, thereby not left ignored.
Organisations zealous about growth would always intend to develop their respective current human capital and other potentials. But in this world of frequent upgrade and innovations in the business environment and the technological ways of doing things, organisations would commit themselves towards bringing their workforce to the task requiring intellectual and manual growth and development. The idea behind this would be to intensify the additional productivity generated by extra employee hired. All these put together would amount to organisations being cost conscious in making sure that employees with high human capital do not leave their organisations.
But in order to be realistic, organizations cannot be everything to all people. No matter how great your company is, it is likely that some of your employees will eventually move on to other opportunities. That may be costing you a lot and affecting your well enjoyed stabilized organization productivity.
Labour or worker or employee or staff turnover has it is often referred to, is the number of permanent employees leaving the company within the reported period versus the number of actual Active Permanent employees on the last day of the previous reported period (physical headcount). According to Business Dictionary (2011), the ratio of the number of employees that leave a company through attrition, dismissal, or resignation during a period to the number of employees on payroll during the same
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