In cost accounting, we study the remedial measures for labor turnover after its calculation. More labor turnover rate will increase the labor cost of company's products. Due to this, overall cost of production will increase. In end, we will fail to fix competitive sale price in the market.
So, it is very necessary to find the remedial measures for labor turnover.
1. Make Long Term Plan of Laborers and Employees
You have to see long period. For example, you are paying wages and salary. There may be the reason, your wages and salary is less. Employees may expect more. Now, think, if your employee will leave your company. What will happen. You will again show the advertisement in the newspaper. For this, you will pay the money. You will also spend time and money for giving training to new employees. It will also increase your cost of labor. Your production will decrease because new laborers and employees produce less products. So, you think all these things. If there is only issue of salary, you should increase the salary by thinking above mentioned factors. When you will get success to keep labor turnover at lowest rate, your business will grow. So, always make long term plan for this.
2. Give More Incentives
I have lots of employees and laborers. Time to time, I give incentives. It may be gift or bonus. With this, I got success to keep them long period.
3. Keep Family Relations
As per my thinking, laborers and employees are also human being. They are also part of your business. If all will leave your company, market value of your company will reach at zero level. Because all will know that you are so selfish. It is not good way. Keep family relations with your employees. Help them when they need your help. Only then, you can decrease labor turnover rate.
4. See All Employees with One Eye
In your staff, there may different type of employees who work for different projects. See them with one eye. Never try to play politics. With this, you will lose very useful employees for all the time. Never differentiate them on the basis of caste, religion, race or other illegal category.
5. Promote them on the Basis of Performance
You should make a good system to check their performance. Promote them on the basis of their performance. With this, employees will do hard-work and try to best to perform better because with this, there salary and status will increase. So, they will never absent and never think to leave the company.
6. Retrenchment of Negative Employees
Some employee are so negative. They try to effect on other employee with their negativity. With this, there is more chance, long period, there may high labor turnover. So, better is to retrenchment of negative thinking employees first.
Category : CS Accounting Notes
So, it is very necessary to find the remedial measures for labor turnover.
1. Make Long Term Plan of Laborers and Employees
You have to see long period. For example, you are paying wages and salary. There may be the reason, your wages and salary is less. Employees may expect more. Now, think, if your employee will leave your company. What will happen. You will again show the advertisement in the newspaper. For this, you will pay the money. You will also spend time and money for giving training to new employees. It will also increase your cost of labor. Your production will decrease because new laborers and employees produce less products. So, you think all these things. If there is only issue of salary, you should increase the salary by thinking above mentioned factors. When you will get success to keep labor turnover at lowest rate, your business will grow. So, always make long term plan for this.
2. Give More Incentives
I have lots of employees and laborers. Time to time, I give incentives. It may be gift or bonus. With this, I got success to keep them long period.
3. Keep Family Relations
As per my thinking, laborers and employees are also human being. They are also part of your business. If all will leave your company, market value of your company will reach at zero level. Because all will know that you are so selfish. It is not good way. Keep family relations with your employees. Help them when they need your help. Only then, you can decrease labor turnover rate.
4. See All Employees with One Eye
In your staff, there may different type of employees who work for different projects. See them with one eye. Never try to play politics. With this, you will lose very useful employees for all the time. Never differentiate them on the basis of caste, religion, race or other illegal category.
5. Promote them on the Basis of Performance
You should make a good system to check their performance. Promote them on the basis of their performance. With this, employees will do hard-work and try to best to perform better because with this, there salary and status will increase. So, they will never absent and never think to leave the company.
6. Retrenchment of Negative Employees
Some employee are so negative. They try to effect on other employee with their negativity. With this, there is more chance, long period, there may high labor turnover. So, better is to retrenchment of negative thinking employees first.
Category : CS Accounting Notes
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