Carrine Kezia Aulia :: 102183022ABSENTEEISM

TURN-OVERRETENTION

OUTLINE

• ABSENTEEISM

type | reason | cost | rate | deal with it

• EMPLOYEE TURNOVERfact | type | cost | rate | deal with it

• MANAGE RETENTIONmyth | drivers | process | make it happen

EMPLOYEE TURNOVERABSENTEEISM

ABSENTEEISM (?)

any FAILURE by an employee

to report for work as SCHEDULED

ABSENTEEISM (?)

OUTPUTOUTPUT

ABSENTEEISM (type)

1. CULPABLE / PLANNED

2. INNOCENT / UNPLANNED

1. CULPABLE / PLANNED

2. INNOCENT / UNPLANNED

REASONREASON

ABSENTEEISM (type)

1.INCIDENTAL

2.EXTENDED

1.INCIDENTAL

2.EXTENDED

TIMETIME

ABSENTEEISM (reason)

source : office for national statistic

OTHER :

• nature of work

• poor working condition

• religious event

ABSENTEEISM (cost)

PRODUCTIVITYPRODUCTIVITY ADMINISTRATIVEADMINISTRATIVE FINANCIALFINANCIAL

• extra burden for org.

• time lost

• decrease motivation

• increase cost in supervising & monitoring in absenteeism program

• salary

• overtime payment

ABSENTEEISM (rate)

number of worker-days lost

through job absence during period

average number of employees X number of workdaysX 100

300

500 X 25X 100

absenteeism rate = 2.4 %

DEAL WITH IT!

• Disciplinary approach : Verbal, written, suspension, dismissal

• Positive reinforcement : Rewards

• Combination approach : Reward and Punishes

• No-fault policy : Manage own attendance

• Paid-time-off (PTO) programs

EXAMPLE

educed absence by 10,000 days in the first 6 months and has

resulted in direct financial savings of £178 per employee per year

EMPLOYEE TURNOVEREMPLOYEE TURNOVER

TURNOVER (?)

movement of employees OUT

of an organization

TURNOVER (fact)

Zero percent turnover is neither realistic nor possible.

Some turnover is actually desirable new employees being fresh ideas and new energy.

Excessive turnover can be very costly to a company.

TURNOVER (type)

INVOLUNTARY VOLUNTARY

Poor performance -> terminated

Leave by choice

Work rule violations(e.g excessive absenteeism) JOB DISSATISFACTION

PAY and BENEFIT

PERSONAL REASON

etc..

JOB DISSATISFACTION

PAY and BENEFIT

PERSONAL REASON

etc..

TURNOVER (type)

FUNCTIONAL DYSFUNCTIONAL

Lower-performing/disruptive employees leave

High performers leave

TURNOVER (type)

UNCONTROLLABLE CONTROLLABLE

Geographic Salary

Stay home Work environment

Transferred spouse

Long-term sickness

TURNOVER (cost)

DIRECT INDIRECT

Cost of hiring Lost productivity

Cost of training Reduced performance level

Transitions costsUnnecessary overtime and low

morale

TURNOVER (cost)

TURNOVER (rate)

number of employee separations during the year

total number of employees during the yearX 100

4

400X 100

turnover rate = 1 % per year

DEAL WITH IT!

EMPLOYEE TURNOVERRETENTION

RETENTION (?)

opposite of turnover

RETENTION (myth)

• Money is the main reason

• Hiring has little to do with retention

• Training = waste money, waste time

• Do not care about retention when organizational change

• High performers want to leave? Just let them go..

RETENTION (drivers)

RETENTION (process)

RETENTION (process)MEASUREMENT AND ASSESSMENT

RETENTION (process)MANAGEMENT AND INTERVENTIONS

RETENTION (process)EVALUATION AND FOLLOW UP

MAKE IT HAPPEN

ATTRACTATTRACT RETAINRETAIN