Absenteeism and Turnover: A Comparative Study Report on Agora, Meena Bazar and Nandon
Prepared For Prof. Md. Nizamuddin Course Teacher: Research Methods Dept. of Business Administration Prepared By Name
ID No.
Sardar Md. Salahuddin Bijoy
3157
Airin Jannat
3214
Moni Rani Saha
3216
Nafeul Hafij
3160
IBAIS University Date of submission: 5/01/2013
ACKNOWLEDGEMENT Firstly we would to thank Allah (swt) for everything and for giving us the wisdom and opportunity to compile this research report. We would like to extend grateful thanks firstly to our teacher Prof. Md. Nizam uddin for his continuous effort secondly, HR manager of Meena Bazar, Mr. Rakibul Hasan, Supervisor of Meena Bazar, Mr. Ali Haider without their help it would not be possible for us to complete this report. We would also like to thanks to the salesperson of Meena Bazar, Agora and Nandom who have shared their working knowledge with us and thus contribute to the completion of the report.
iCARUS Group
Executive summary The employee absenteeism and turnover has always been a critical problem. It has a great number of negative effects in the organization particularly where the whole business depends on the salesmen. Purpose: The report has been prepared to identify the present condition of employee turnover and absenteeism rate of three well renewed superstores named as “Agora”, “Meena Bazar” and “Nandon”. The study focused on the demographical analysis of the superstore’s salesperson, the individual superstores absenteeism and turnover rate, the comparative analysis of absenteeism and turnover of three superstores. Research Methods We have conducted survey method. Here we have selected a single branch of each superstore as a sample for our survey to get the characteristic of the population or to get a general idea. We also have selected the salesperson of those branches for our absenteeism and turnover rate.
Introduction Superstores in our country are now expanding rapidly at the same time creating employment for a number of people. Since the whole business entirely depends on sales it has also become necessary to train the salesperson, motivate them and retain them to avoid absenteeism and turnover. Among all the other superstores a significant proportion of employees are working on Meena Bazar, Agora and Nandon. Due to the expansion of business starting with a very few employees now they have a large number of people, working in the superstores as a salesperson. Approximately 150 salespersons are presently working in three superstores on Dhanmondi 27. Basically students or low skilled people are encouraged to work as a salesperson in those superstores. The study has been focused on the absenteeism and turnover rate on three specified superstores. Absenteeism means Employees missing part or whole days of work due to personal illness, personal business or other reasons excluding paid vacation. These absences may be avoidable or unavoidable and Turnover means replacement of employees who have left the workplace due to either voluntary or involuntary reasons.
Literature Review Turnover: The rate of turnover varies from company to company. The highest level of turnover normally found in private sectors than public sectors. The levels of turnover also vary from region to region. The highest rates are found where unemployment rate is lower and where it is easy for people to get alternative employment. Sometimes employee turnover benefits organizations positively. This might happen when a poor performer is replaced by a more skilled employee and when a retired employee replaced by a younger one. Employee turnover may be also costly as it requires different cost to take account such as administrative costs of recruitment, cost of covering during the period in which there is a vacancy, training cost for the new employee etc. Turnover occurs for many different reasons. Sometimes new job attracts employees and pull them to leave the old one. In contrary employee also pushed to leave job due to the dissatisfaction in their present workplace or by domestic circumstances when someone reallocates with their spouse or partner. A poor relationship with the management can be an important reason for the employees to leave their jobs. It is relatively rare for people to leave jobs in which they are happy even offered by higher salary elsewhere. A lack of proper training and development is also major
Methodology: The research study will look at the possible causes of absenteeism and turnover specifically three superstoresMeena Bazar, Agora and Nandon. Sampling Plan • Population: All employees of Meena Bazar, Agora and Nandon. • Sample Unit: Employees of Meena Bazar, Agora and Nandon of a single branch situated on Dhanmondi-27. • Sampling unit: Non-Probabilistic Sampling.
Methods of data collection Primary Data
Primary data has been collected by the following two tools:
a)
Questionnaire Method Here closed end questionnaire method has been used where the participants were asked to answer questions based on absenteeism and employee turnover.
b)
Direct interview Method.
Findings:
Discussion From the overall findings, the data gives us some clues on the absenteeism and turnover rate. The data shows the absenteeism and turnover rate is higher in Nandon and Agora compares to Meena Bazar due to the employment of a proportion number of male and female workers, lower absenteeism rate, use of lower sick leave, fewer turnover. All this positive sides makes the shares higher compares to other two superstores-Agora and Nandon.
Recommendation Recommendation for Meena Bazar 1) 2) 3) 4)
More male salesperson should be employed. Other facilities like transportation should be provided. Training should be provided. The organzation give extra incentive based on sales to motivate the employees. 5) The organization should provide some entertainment for the employees like television in the workplace during offpeak hour to reduce their stress or to reduce their bore feeling. 6) Some light food can be provided at a minimum or free of cost e.g. Tea. 7) Regular survey should be conducted to undertstand their present condition of individual sales and their satisafaction level.
Recommendation for Nandon 1) More salesperson should be employed as we have seen few salesperson are looking after the whole superstores which can reduce pressure. 2) Rumeneration should be increased. 3) Transporation facility should be provided. 4) The supervisor should train the emplyees more to motivate them in selling. 5) The environment of the workplace should be friendly which might help the employees work like home.
Conclusion Undoubtedly, we can say the superstores have a very bright future. At the same time it is also import to ensure that the human resources are managed properly. It is not only raising cost but also ruining the image of the organization. So such sensitive issues like absenteeism and turnover should be handled properly not only for reducing cost but also for holding their reputation in the market.
Executive summary The employee absenteeism and turnover has always been a critical problem. It has a great number of negative effects in the organization particularly where the whole business depends on the salesmen. Purpose: The report has been prepared to identify the present condition of employee turnover and absenteeism rate of three well renewed superstores named as “Agora”, “Meena Bazar” and “Nandon”. The study focused on the demographical analysis of the superstore’s salesperson, the individual superstores absenteeism and turnover rate, the comparative analysis of absenteeism and turnover of three superstores. Research Methods We have conducted survey method. Here we have selected a single branch of each superstore as a sample for our survey to get the characteristic of the population or to get a general idea. We also have selected the salesperson of those branches for our absenteeism and turnover rate.
Findings: Though we have seen a little bit similar result of employee turnover and absenteeism rate on those three superstores yet the market share of Meena Bazar is much more promising
according to the report relative to Agora and Nandon. The absenteeism and turnover rate is significantly lower than Agora and Nandon. Main Conclusion: Undoubtedly, we can say the superstores have a bright future in our country. But the report tells us that among three superstores only the Meena Bazar is at the top with lower absenteeism rate and turnover.
Introduction Superstores in our country are now expanding rapidly at the same time creating employment for a number of people. Since the whole business entirely depends on sales it has also become necessary to train the salesperson, motivate them and retain them to avoid absenteeism and turnover. Among all the other superstores a significant proportion of employees are working on Meena Bazar, Agora and Nandon. Due to the expansion of business starting with a very few employees now they have a large number of people, working in the superstores as a salesperson. Approximately 150 salespersons are presently working in three superstores on Dhanmondi 27. Basically students or low skilled people are encouraged to work as a salesperson in those superstores. The study has been focused on the absenteeism and turnover rate on three specified superstores. Absenteeism means Employees missing part or whole days of work due to personal illness, personal business or other reasons excluding paid vacation. These absences may be avoidable or unavoidable and Turnover means replacement of employees who have left the workplace due to either voluntary or involuntary reasons. The absenteeism and turnover rate is influencing the overall productivity specially, on superstores which require continuous support while buying by the customer products and managing each department as well. The absenteeism and employee turnover has always been playing a vital role in productivity. It has found that the absenteeism and turnover rate tremendously affect the company inventory turnover on superstores. This is not only reduces productivity but it also incur cost to the company as it requires extra cost to the employer, putting pressure on other salespersons while other salesperson is not present and also adding cost for hiring and provide training to the new salesperson and wasting of valuable time as well. Sometimes it also creates dissatisfaction to regular consumers as well. The report will help the management to understand the relative condition of the existing leading superstores. Their comparative condition, salesperson demographic analysis, turnover and absenteeism rate.
Literature Review Turnover: The rate of turnover varies from company to company. The highest level of turnover normally found in private sectors than public sectors. The levels of turnover also vary from region to region. The highest rates are found where unemployment rate is lower and where it is easy for people to get alternative employment. Sometimes employee turnover benefits organizations positively. This might happen when a poor performer is replaced by a more skilled employee and when a retired employee replaced by a younger one. Employee turnover may be also costly as it requires different cost to take account such as administrative costs of recruitment, cost of covering during the period in which there is a vacancy, training cost for the new employee etc. Turnover occurs for many different reasons. Sometimes new job attracts employees and pull them to leave the old one. In contrary employee also pushed to leave job due to the dissatisfaction in their present workplace or by domestic circumstances when someone reallocates with their spouse or partner. A poor relationship with the management can be an important reason for the employees to leave their jobs. It is relatively rare for people to leave jobs in which they are happy even offered by higher salary elsewhere. A lack of proper training and development is also major cause for voluntary turnover. Employees have a preference for security of their jobs. Absenteeism: At first we will discuss the different determinants which were found to have a relevant impact on employee absenteeism by previous research The four categories used throughout the study are: demographics, health characteristics, household characteristics and job characteristics. Demographics Employee absence behaviour is expected to vary with socio-demographic characteristics. This section will discuss the influence of gender, age and educational attainment on employee absenteeism. Gender Women are expected to be absent more often since they are, traditionally seen, more inclined with taking care of the household (Barmby, Ercolani and Treble, 2002), but also other explanations were found in the literature. Age Despite much previous research, many contradictory evidence is found regarding the relationship between age and absenteeism. On one hand it is often argued that older employees will be absent more since older people are expected to be sick more. Education A far less often tested factor in relation to absenteeism is level of education. It is expected that employees have finished their education before they started working. As such this factor will merely focus on whether significant differences can be found between absenteeism and highest finished level of education.
Health characteristics Probably the most important indicators of absenteeism are related to the health of employees. While other factors have their impact on influencing the absence rate, health itself, for example general illness, is the most occurring reason for an employee to be absent Health status Self-assessed health status is an increasingly common measure of health in empirical research and has shown to provide a trustworthy view of a person‟s health (Linn and Linn, 1980; Crossley and Kennedy, 2002). It could be understood that people who assess their health better, thus rate their own health at a higher degree, are likely to be absent less often. Lifestyles In this paper lifestyles resemble a person‟s BMI and smoking habits. A BMI informs whether a person has underweight, overweight or even obesity. A person, who is fitter, at good weight or physical condition, will be better able to fight illnesses or injuries. Smoking is well known to negatively influence health and is shown to have a negative relation with absenteeism Relationship status The relationship status of a respondent seems to have an influence on absenteeism. Important to notice is that the distinction in relationship status will be made between married and single. Children Besides the relationship status the formation of the household, such as presence of dependent children and household size in general, has an influence on the absence behaviour of an employee. Dependent or young children cannot take care of themselves and depend on the care of their parents or others. Employees with such children will be absent more often due to caring responsibilities. This behaviour is also inclined to grow stronger as the total household size grows due to more children per household, which will cost more time and involvement Taking care of others This determinant has not been tested much. As such little theoretical support or results can be found in previous research concerning a link between taking care of others, besides only an employee‟s own children, and absenteeism. Other household income As mentioned, income or economic support from other household members could influence attendance behaviour. This additional household income could stem from income received by others in the household, capital or other non-labour income. Job characteristics Besides individual characteristics, the working conditions or characteristics also has influence on the rate of absence. A basic psychological support for significance of such factors can be found in the aspect that when people enjoy what they are doing or if it matches their needs, they will exert more effort in order to meet the commitments, in this case attendance at work. Job satisfaction Price and Mueller (1981) describe job satisfaction as the overall degree to which employees like their jobs. As mentioned earlier, when somebody is satisfied with what he is doing he will exert more effort in keeping his promises, which here means showing up at work. Satisfied people are also less inclined to focus on the negative aspects which could result in a (more) negative attitude 16 which correlates with absence positively. Steers and Rhodes (1978) summarize this effect clearly; highly satisfied employees would probably want to attend strongly, while highly dissatisfied employees would probably want not to attend strongly. Personal labour income
When an employee earns a higher labour income, according to the labour-leisure framework, his time being absent will have higher opportunity costs. An employee is thus expected to exert more effort to attend at work and choose less for leisure. This is in line with the efficiency wage theory which explains that employees earning higher wages will exert more effort and be less absent. Job status Employees working at higher functions behave differently with respect to the rate of absence. Employees with a higher job status are assumed to be absent less than employees with a lower status. Reasons for this relationship are that employees with a higher status often have more responsibilities and work in less hazardous conditions. Methodology: The research study will look at the possible causes of absenteeism and turnover specifically three superstores-Meena Bazar, Agora and Nandon. Sampling Plan • Population: All employees of Meena Bazar, Agora and Nandon. • Sample Unit: Employees of Meena Bazar, Agora and Nandon of a single branch situated on Dhanmondi-27. • Sampling unit: Non-Probabilistic Sampling.
Methods of data collection Primary Data
Primary data has been collected by the following two tools: a)
b)
Questionnaire Method Here closed end questionnaire method has been used where the participants were asked to answer questions based on absenteeism and employee turnover. Direct interview Method. Here the HR managers of respective superstores, has been interviewed to answer certain questions.
Methods of analysis In order to analyze and interpret data some tools of statistical analysis has been used. The statistical tools to be followed are. 1)
Mean
2)
Percentage
3)
Cross tabulation
Scope: The scope of the report is limited to all the salesperson of Meena Bazar, Agora and Nandon at Dhanmondi#27 Branch. The report will explore the reasons of employee absenteeism and turnover. Limitation Some limitation and inconvenience had appeared as barriers in accomplishing the report. These are as follows: 1) The study only covers single branch of three specified superstores. 2) The information that collected through questionnaire and survey and direct interviews could be imprecise inorder to keep internal information secret. 3) Insufficient time period. 4) Due to limitation some assumptions were made. So there may be some mistakes in the report.
Findings:
Number of salespersons MALE
Female
49
21
Meena Bazar
Number of sales persons Female
Male
7
28
Agora
Number of salespersons Female
Male
20
5
Nandon
Termination of Employees:
Percentage of men terminated for voluntary reason Meena Bazar
Agora
Nandon 90
85 80
Percentage of men terminated for involuntary reason Meena Bazar
Agora
Nandon
20 15 10
Avarage number of days taken for leave reasons per employee Meena Bazar
Agora
6
Nandon
6
5
Employees Hired by the Superstores
Pencentage of Men Hired Meena Bazar
Agora
Nandon
Percentage of Women Hired Meena Bazar
80
Agora
Nandon
80 70
30 20
20
Percentage of sick leave usage Meena Bazar
Nandon
Agora 98
97
95
Average number of sick days taken per employee Meena Bazar
Agora
Nandon 20
15 10
Avarage number of days taken for leave reasons per employee Meena Bazar
Agora
6 5
Nandon
6
Avarage number of days taken for leave reasons per employee Meena Bazar
Agora
6
Nandon
6
5
Percentage of men terminated for voluntary reason Meena Bazar
Agora
Nandon 90
85 80
Percentage of sick leave usage Meena Bazar
Nandon
Agora 98
97
95
Discussion From the overall findings, the data gives us some clues on the absenteeism and turnover rate. The data shows the absenteeism and turnover rate is higher in Nandon and Agora compares to Meena Bazar due to the employment of a proportion number of male and female workers, lower absenteeism rate, use of lower sick leave, fewer turnover. All this positive sides makes the shares higher compares to other two superstores-Agora and Nandon.
Recommendation
Recommendation for Meena Bazar 1) 2) 3) 4) 5)
More male salesperson should be employed. Other facilities like transportation should be provided. Training should be provided. The organzation give extra incentive based on sales to motivate the employees. The organization should provide some entertainment for the employees like television in the workplace during offpeak hour to reduce their stress or to reduce their bore feeling. 6) Some light food can be provided at a minimum or free of cost e.g. Tea. 7) Regular survey should be conducted to undertstand their present condition of individual sales and their satisafaction level.
Recommendation for Nandon 1) More salesperson should be employed as we have seen few salesperson are looking after the whole superstores which can reduce pressure. 2) Rumeneration should be increased. 3) Transporation facility should be provided. 4) The supervisor should train the emplyees more to motivate them in selling. 5) The environment of the workplace should be friendly which might help the employees work like home. 6) Some extra facilities should be provded in the workplace, like television or music to refresh their mind. 7) Regular survey should be conducted to undertstand their present condition of sales and their satisafaction level.
Recommendation for Agora 1) 2) 3) 4) 5)
Rumuneration should be increased. Transportation facility should be provided. More employee should be employed to reduce pressure. Proper training should be provided to motivate employees. Regular survey should be conducted to undertstand their present condition of sales and their satisafaction level. 6) Extra facilities can be given like watching Television or listening to music. 7) Friendly environment should be created in the workplace. 8) Supervisor should be more friendly and critical in thinking while dealing with employees.
Conclusion Undoubtedly, we can say the superstores have a very bright future. At the same time it is also import to ensure that the human resources are managed properly. It is not only raising cost but also ruining the image of the organization. So such sensitive issues like absenteeism and turnover should be handled properly not only for reducing cost but also for holding their reputation in the market.
