Download - Absenteeism, Turn Over and Retention
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