It is costly, lowers productivity and morale and tends to get worse if not dealt with. (http://labourbureau.nic.in/Asi203c/chptr-III/lab/labour.htm) Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees employed during that period. (http://www.wisegeek.com/what-is-employee-turnover.htm) A high level of Labour Turnover could be caused by many factors: ¾ Inadequate wage levels leading to employees moving to competitors, ¾ Poor morale and low level of motivation within the workforce, ¾ Recruiting and seeking the wrong employees in the first place, meaning they seek more suitable employment, ¾ A buoyant local labour market offering more attractive opportunities to employees, (http://labourbureau.nic.in/Asi203c/chptr-III/lab/labour.htm) and ¾ Miss-match between employee’s personal values, career, goals and plans with the larger corporate
Unemployment happen when people active to seek the work but unable to get work. This will eventually resulted in the loss of incomes, production and human capital of a nation. High level of unemployment usually occurs when the economy recession where labour supply exceeds demand from the employers. Long-term unemployment will damages a person’s job prospects by destroying human capital. The degree of unemployment in a nation indicates the economic health of the country.
For example, failure in managing workforce diversity can bring dissatisfaction among the employees. Consequently, it will result high turnover and absenteeism in company which will ultimately result lower profits. High turnover will also result loss of expenditures financed on the hiring as well as training and development of employees. In addition to this, failure in managing workforce diversity may result poorer productivity of individual employees which will ultimately result lower productivity of the firm (Daft, 1997). Elmuti (2001) argued that firm may have bad image in the market and will not be able to attract competent, skilled and trained personals against the particular positions.
Inequity in pay structures or low pay are great causes of dissatisfaction and can drive some employees to quit. Again, a new worker may wonder why the person next to him is receiving a higher wage for what is perceived to be the same work. You should have a wage and job evaluation system in place not only so that you are sure to comply with legal requirements, but also to avoid this problem. The salary or wages can also be an important deciding factor in employees decision to stay or leave. The data suggests dissatisfaction with pay can be a key factor in turnovers .
When this labor is strong-stretching, unemployment becomes severe and prolonged. + Unemployed due to lack of demand: due to the decline of demand. This type is also called career cycles by in the market economy, it is associated with recession of the business cycle occurring everywhere in the industry. + Unemployment due to external factors market: It occurs when the salary is not fixed by market forces and higher than the actual balance of the market strengthened. - Voluntary employment: + Voluntary unemployment is division of employees who do not work by the job and the salary does not conform to their
Frictional Unemployment: Frictional unemployment arises owing to dynamism of labor market. Some workers voluntarily decided to change work place, having found, for example, more interesting or highly paid job. Others will try to find a job because they got fired from the previous place of work. The third for the first time enter on labor market or return to it, moving from category of economically inactive population to opposite category of unemployment. 2.
Changing the way economy is setup can drastically affects the lives of its citizens. The changing in economy has hurt many of it’s working class people. Some people can 't find any jobs and they are struggling. The lack of job opportunities in the country is hurting those who are americans and immigrants that are homeless. The creation of political machines are taking over the jobs that the people need.
The significant reason for immigration is employment. To illustrate, there are push factors in country or city of origin and pull factors in destination country or city. Push factors include lack of positions and opportunities in jobs. Pull factors can be noticed as variation of career occasions, satisfying salaries (Rutten, 2009). Better job chances are very attractive for people.
Globalisation has been perceived as a solution to reduce income inequality across the globe. This could be explained by improvements in infrastructures and communications, which allow the developing countries to close the gap with the richer developed countries. Moreover, the theory of comparative advantage also supports this stand. However, the article suggested that despite this supposedly positive global phenomenon, inequality has instead worsened within many developing countries. One possible explanation to this issue could be the problem of outsourcing, where there is a distinctive difference with regards to the rise in productivity between the skilled and unskilled workers.
Downsizing in term of management is an intentional reduction in the size of a workforce at all staffing levels in order to survive a downturn, improve efficiencies, or become a more attractive candidate for acquisition or merger. Used often as a euphemism for indiscriminately firing the employees . The downsizing process is affecting the organizations and employees by changes in individual responsibilities and the work process. When there are layoffs, employees are required to do more with less input and source. In order to keep the organization functioning effectively despite fewer staff members, employees need to take other roles and responsibilities and ineffectively doing the work or task given.