Staff Turnover & Absenteeism

Definition of Human Resource Management (HRM)

• Human Resource Management (HRM): is responsible for managing the organisation's workforce through established policies and technology solutions.
• Examples include integrated HR software and AI-enhanced recruitment processes.
• HRM has evolved from focusing solely on administrative duties to becoming a strategic partner due to the influences of globalisation and workforce diversity.

Objectives and Impact of Effective HRM

• Objectives of HRM:
  • Enhance employee satisfaction.
  • Cultivate a positive organisational culture.
  • Align workforce resources with business objectives.
• Impact of Effective HRM:
  • Increased productivity: Efficient workflows result in improved output.
  • Reduced turnover: Adaptive policies increase employee retention.
  • Cost efficiency and higher engagement: Fostered by a positive workplace atmosphere.

• Example: Companies like Google and Zappos exemplify effective HRM by fostering vibrant cultures that stimulate innovation and enhance retention.

Staff Turnover and Absenteeism as Indicators

Staff Turnover: Definition and Impacts

• Staff Turnover: A measure of the rate at which employees depart from an organisation over a specific period.
• Types of Turnover:
  • Voluntary Turnover: Occurs when employees choose to leave the organisation. Example: Resignation for better opportunities.
  • Involuntary Turnover: Occurs when employees are dismissed by the employer. Example: Layoffs due to budget reductions.

Impact of High Turnover

• Disruption: High turnover disrupts operations and workflow.
• Morale: Detrimentally affects employee morale and decreases productivity.
• Costs: Increases expenses for recruitment and training.
• Knowledge Loss: Leads to gaps in organisational knowledge.

Calculation of Turnover Rate

• Formula:

$\text{Turnover Rate} = \left( \frac{\text{Number of employees who leave}}{\text{Average number of employees}} \right) \times 100$

• Example: If 15 out of 150 employees depart over the year:
  • Turnover Rate: $\left( \frac{15}{150} \right) \times 100 = 10\%$

Visualising Turnover Trends

• Use graphs to show turnover patterns over intervals.

Causes of Staff Turnover

Internal Causes

• Recruitment and Onboarding:

  • Issues: Suboptimal recruitment practices and role mismatches.
  • Solutions: Strengthen training programmes and enhance mentoring.

• Career Advancement:

  • Absence of transparent progression paths demotivates staff.
  • Strategy: Develop clear career paths and conduct regular promotion evaluations.

• Workplace Culture:

  • Toxic environments contribute to turnover.
  • Remedy: Create an inclusive work atmosphere through team-building activities.

External Causes

• Economic Factors:

  • Recessions and competitive offers can exacerbate turnover.
  • Strategy: Modify compensation packages in accordance with market trends.

• Leadership and Management:

  • Challenges: Micromanagement and insufficient development programmes.
  • Strategy: Foster flexible and responsive leadership approaches.

Summary Diagram

Strategies to Reduce Staff Turnover

Strategic Interventions

• Competitive Compensation
  • Ensure that salaries reflect industry standards.
• Mentorship and Career Development
  • Introduce mentoring protocols and establish career paths.
• Positive Workplace Culture
  • Nurture a supportive and inclusive environment at the workplace.

Effective Motivation Strategies

• Work-Life Balance Initiatives
  • Offer flexible working hours and remote work options.
• Employee Recognition Programmes
  • Customise recognition and advancement opportunities.

Introduction to Absenteeism

Definition & Context

Impact on Business

• Reduced Productivity
• Increased Operational Costs
• Lowered Team Morale

Causes of Absenteeism

Internal Factors

• Health-Related Issues
  • Includes chronic illnesses and mental health challenges.
• Workplace Stress and Culture
  • Workplace stress and toxic conditions can heighten absenteeism.

External Factors

• Economic Conditions
• Personal Circumstances
  • Challenges with work-life balance can lead to absenteeism.

Visualising Causes

Absenteeism Reduction Strategies

Flexible Work Schedules

• Customise work hours to boost attendance.
• Mitigate burnout by enhancing work-life balance.

Implementation Steps

1. Assess Roles
2. Develop Policies
3. Communicate Effectively
4. Pilot Implementation
5. Gather Feedback and Adjust

Case Study: Successful Implementation

• Example: Company X slashed absenteeism by 30% using flexible scheduling.

Visual Summary of Turnover & Absenteeism

Venn Diagram

Shared Characteristics

• Workplace culture impacts both turnover and absenteeism.
• Economic conditions influence both turnover and absenteeism differently.

Monitoring Tools and Techniques

HR Analytics

• Leverage tools for employee monitoring and predictive insights.
• Surveys and benchmarks provide clarity on HR trends.

Visualisation Methods