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Full Project – EFFECT OF LABOUR TURNOVER ON BREWERY INDUSTRIES

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CHAPTER ONE

INTRODUCTION

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.

Considerable time, efforts and money are pared into attaching and selecting employees, but also too little of the same are directed towards keeping them some employers brush the problem aside and take comfort in the fact that their problem is not worth warring about because their competitors has a turnover rate twill as high. Another typical response is that it is a complex problem and nothing much can be done about it. If we are sincere about reducing turnover, we must first recognize and admit that it is soluble, though admittedly complex problem. Recognizing are often not the real reason we have to develop techniques to get at the real reasons and efforts are therefore directed at the problems and not at the symptoms of the problems.

1.2 SCOPE OF THE STUDY

The study was geared towards identifying the nature and magnitude of the problem of labour turnover in Guinness Brewery PLC, a private firm. A survey was conducted on work related attitude of staff on the payroll of the firm. These work related attitudes include why staff left, things that they were not happy with and also why staff stayed and thing they – were happy with. The result of exit interview of the company under study was not made available to us by the companies human resource department and were not included in this study. The study determined why individuals voluntarily left their job and also distinguished between resignation of satisfactory and unsatisfactory staff.

1.3 RESEARCH QUESTION

The study did utilize the following research questions.

1. Why are employees terminated and what are the causes of their termination?

2. Why do employees resign and what are the causes?

3. Is the problem communicated to management and how is it communicated to management?

4. What impact has labour turnover had on the organization?

5. Does turnover occur more in some departments?

1.4 SIGNIFICANCE OF THE STUDY

This study helped us to know the causes of turnover, its attendant’s effect on the industries in the Brewery sector in Nigeria in terms of huge financial loss and its effects on the attitudes of employees towards employers. The result was additional turnover and difficult in recruiting good workers. It helped to give height on the control of turnover separation of employer and employee occurs for many reasons. Some were heritable occur could be avoided. Knowledge of the basic factor in the rate of turnover and created a savings were considered more than they first appeared. Replacement of staff who have been in service for may years requires hiring and training several ones before a relatively permanent staff were more subjected to accidents, caused more breakages and made more errors than experienced workers so the cost of replacement may greatly exceed hiring. Another vital feature of turnover was that it reflected conditions in the plant. A firm which had high turnover was regarded unfavourable by employee and the society. By analyzing the reasons for turnover, we determined some of the fault practices that were more prevalence in one company than the other. This study also enable us to identify were turnover concentration were high and proffered solution to its corrective measure.

1.5 PURPOSE OF STUDY

The purpose of the study is to research into the major causes of turnover in the industries in the brewing sector. To know why employee are terminated e.g inability to perform, unwilling-ness to perform or attitudinal cases such as absenteeism, tardiness, and failure to observe rules and regulations and insubordination. To know why employees resign and quit E.g. Opportunities, unfair and unequal treatment, poor supervision, interpersonal relationship, unsatisfactory pay, unpleasant working conditions, illness, retirement and death. To know how the problem is communicated to the management and what is their reaction. Little can be done to attack the problem if management and supervision are either unaware of the facts and statistics relate to it and to make specific contributions regarding solutions to problems of turnover in brewing sector in Nigeria. Finally, to estimate the rate of turnover cost and a profile of people that are leaving and the areas of department that are experiencing the greatest turnover.

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