PLANNING MANPOWER

WHY PLAN MANPOWER

The critical factor in the operation of many businesses is Labour. In a labour intensive industry such as distribution Labour is an even higher factor. The costs of Labour make up the large proportion of the operational costs of a business. Planning manpower is the forecasting of the kind of employees and the type of employees.

Manpower planning is imperative in finding out the labour costs, or the business including redundancy, accommodation, training and recruitment. Details of the following mints are to be taken into consideration in the 5 year Manpower Plan.

  1. Job changes in existing roles.
  2. Restraining, re-deployment.
  3. Management and supervisory changes.
  4. What are the training needs.
  5. Programmes for recruitment, redundancy and retirement.
  6. The need for accommodation.
  7. Industrial changes.

LABOUR TURNOVER

(The rate of change in a workforce)

No employer can ignore the Labour Turnover of his organisation. It is an indication of the health of the organisation, a High or Low labour turnover can be a warning signal of job satisfaction etc. There is a great expense if specialist people and People whom you have spent money training leave and they are hard to replace and cost money in loss of production through time re-training new staff and in overtime rates o make up for the loss of staff.

Reducing labour turnover means re-viewing and monitoring Separation rates as these an show a need for introducing or improving training programmes, reviewing pay and Looking at working conditions to make sure they are up to standard.

Measuring labour turnover

The number of employees leaving over a period of time as a percentage of average number of employees of the period of time.

FORMULA 1

crude labour turnover
Separation rate 
total number of leavers in a period              X 100
average number of persons employed in period

FORMULA 2

Quit Rate
separation rate 
total number of voluntary leavers in a period           X 100
average numbers of persons employed in period
FORMULA 3
Long service stability index 
total number of employees with 1 years service or more   X 100
average number of persons employed at start of period

FORMULA 4

Fringe turnover rate 
number of employees joining and leaving within 1 year    X 100
average number of employees in one year
Used in conjunction with the separation rate, this shows how long the experienced employees are staying with your business. Labour turnover differs for :-
  1. for sexes (higher for woman)
  2. for age groups (decreases with age)
  3. for workers with different lengths of service (decreases with length of service
  4. with type of work (lower for skilled workers)
  5. with employment levels (economy)
 

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Last updated: January 07, 2002.