EFFECT OF LABOR TURNOVER ON BREWERY INDUSTRIES
1.0 BACKGROUND OF STUDY
Turnover refers to the termination of employees and hiring of other employees to replace them. These actions are broadly divided into accessions and separations. Accession means addition of staff while separation means termination of staff.
Accession includes new hires and callbacks separation includes quits, discharge and layoffs for normally more than seven consecutive days. Turnover is often categorized voluntary or involuntary, avoidable and unavoidable voluntary separations are initiated by the employers. Berrymanfink (1989: 332). Avoidable separations are ones the employer has control over, such as wages, benefits, hours and working conditions
Unavoidable separations are ones the employer has no control over such as illness, retirements, death and pregnancy. Unavoidable forms of turnover are constant factors and influences all form of work as well as all companies.
Turnover caused by layoffs and seasonal conditions may depend upon factors beyond the employers control but he can influence these to a considerable degree, Kiwein (1962: 458).
Another important aspect of turnover is that it reflects conditions in the Plant Steer, (1962: 41). A company with higher labour turnover is regarded unfavourable by the employee and the society, apart from huge wastage in hiring people and training replacements. It is for this reason that we because inrested in analyzing the reason of effect of turnover which can help us to determine some of the faulty practices that are more prevalent in one company than in other. Before judging a company however we must take into consideration the nature of the causes of separation.
1.1 STATEMENT OF PROBLEM
Most employers of labour recognize that there are serious and on going problems of great concern in personnel turnover. This is costly problem with one authority noting that it cost American industry 11 billion dollars a year. This figure include items as recruitment, hiring and training of replacements. In addition, new employees are more subject to accidents, cause more breakages and make more errors than experienced worker.
Stessin (1961) agrees that the cost of replace a man may greatly exceed the hiring estimate of $ y82 for average company.
Nigeria should be experiencing such type of problem emanating from stated reasons above and as a result requires concrete analysis on the turnover problem to ensure its attend solution.
Scot (1941) observed that in a recent U.S. Department of labour study indicated that in the twenty to twenty four age group, the average worker will change his job 6.6 times during life time. Those in twenty five to thirty four age group will change his job 4.8 times. Those in fourty five to fifty four age group can expect to change job 1.4 times before retirement.
Controlled turnover can be healthy as it clears out dead woods and brings new blood and fresh ideas as approaches to organization. All too often however, the ones who leave are not ones management wishes to leave.
While most employers recognize the seriousness of the problems, they all too fails to attach monetary values to the loss failures to correct turnovers and reduced profit often results in little being down to reduce the problem, if the sane monetary expenditure were for serap, much would be done to attack the problem it seems strange then that people, our most important and costliest asset, receives less attention.