LABOR MARKET :-
The market in which
workers compete for jobs and employers
compete for workers. It acts as the external
source from which organizations attract
employees. These markets occur because
different conditions characterize different
geographical areas, industries, occupations,
and professions at any given time.
Labor Market Related Terms
1- Labor Market:
A labor market is defined as a pool of all potential workers
who compete for jobs. It also includes the employers who
compete for workers. Labor markets are based on the
supply and demand of labor in a country or a specific
location that are able and willing to work.
2- Labor Force:
Labor force includes all persons classified either as
employed or unemployed during a specified period of
time, usually a day or a week. Labor force can be
categorized as self-employed, wage and salary earners,
casual workers and unemployed.
3- Casual Workers:
Casual workers are those workers who are generally employed by small entrepreneurs on daily or weekly basis on a low wage rate. They are not entitled to any paid holiday leave or paid sick leaves.
4- Unemployed persons:
The persons in the labor market who are without work, that is, without paid employment or self-employment and are currently either available for work or are seeking any work are considered to be unemployed.
5- Employment rate:
It is ratio of employed persons to the total labor force. It is the percentage of working age people who have jobs or are employed.
6- Labor force participation rate:
It is the number of persons in the labor force as a percentage of the working-age
population. The working-age population is the population above a certain
reference age like 15 years old and over or 15–64, etc
7- Unemployment rate:
It is the ratio of unemployed people to the total labor force
8- Underemployed persons:
who are employed, but not in the desired capacity, whether in terms of
compensation, hours, or level of skill and experience. The skills of such
persons are underutilized, for example paying low wages to a highly skilled
employee. Underemployment also refers to a situation where a major portion of
labor force is unemployed.
9- Underemployment rate:
It is the ratio of underemployed to either total labor force or total employment.
Labor Market in India
The Indian labor market can be categorized into three
sectors:
Rural workers, who constitute about 60% of the workforce
Organized of the formal sector, that constitutes about 8% of
the workforce.
Urban unorganized or informal structure which represents the
32% of the workforce.
Categories of Labor force
Self Employed Workers
Wage And Salary Earners
Casual Workers
Unemployed Workers
Estimated Increase In Labor Force The chart below describes the estimated increase in the number of labors from
1977-78 to 2004-05. The labor force has grown from 276.3 million to 385.5
million between 1977-78 and1993-94 showing an annual growth rate of 2.1%.
During the year 1999-2000, the workforce was estimated to be 407 million. In
2004-05 the labor market consisted of 430 million workers and has grown up to
500 million in 2006.
The Labor Force In Year 2006 It has grown up to 509.3 million out of which 60% are in
agriculture, 12% are employed in industries and the residual 28% are in services.
LABOUR TURNOVER :
Turnover means “change”. A change in the financial
status of an organization is called “the financial
turnover”. A change in the number of employees of
an organization is called “The labor turnover”
REASONFOR LABOUR TURNOVER:
Avoidable Reasons
(low job satisfaction, low pay, risky or repetitive work
etc.).
Unavoidable reasons
(death, retirement, accident, poor health etc.).
Methods Used To Estimate Turnover: Every good organization prepares a report of labor turnover to refer and rectify the
avoidable causes of turnover. Below are methods used to estimate turnover:
Average No. = (No. of employees at start + No. of employees at end) / 2
1- Separation Method/Rate:
(Number of employees separated in a period / Average number of employees in the
period ) * 100
2- Replacement Method/Rate:
(Number of employees replaced in a period / Average number of employees in the
period) * 100
3- Flux Method/ Rate:
(No. of employees separated + No. of employees replaced) / Average number of
employees in the period } * 100
Factors could be the cause of a high level of Labour Turnover :
a) Dissatisfaction on account of insufficient wages
leading to employees moving to competitors
b) Low level of motivation from employers’ side and
poor morale within the workforce in a specific
industry.
c) Recruiting and misplacement of employees
resulting in their mobility in search of suitable
employment.
d) A floating local labour market offering better
and more attractive opportunities to
employees.
HOW TO REDUCE LABOUR TURNOVER
Following action may be taken to reduce labour turnover: Pay Problem – increasing pay scale & improving pay structure to
remove inequities Employees Learning to further their Career – providing better
career opportunities& ensuring the job, opportunities for training & development program, implement promotion
Employees Leaving due to Conflict – more effective procedure for handling grievances & improving communication, using resolution & teambuilding techniques, reorganisation of work.
The Induction Crisis – improving recruitment & selection process, ensure job requirement, developing better induction & initial training program
Shortage of Labour – improving recruitment , selection & training, intoducing better method of planning & scheduling work smooth out peak loads.
PRESENTEEISM
Presenteeism is a term used by human resource
professionals to describe circumstances in
which employees come to work even though
they are ill, posing potential problems of
infection and lower productivity. When
employees go to work sick they risk infecting
their co-workers and will most likely not be as
effective or productive in their work
Stress
Shift work
ABSENTEEISM :
In every organisation an employee / worker has some definite working hours with certain responsibility (work assigned) and if the worker is not present in their working hours that called absenteeism in the organisation.
FACTORS IN ABSENTEEISM : Moral Work schedule flexibility
1- Alternative Work Arrangements
2. Compressed Work Week
3. Job Sharing, and
4. Telecommuting
CAUSES OF ABSENTEEISM :
Personal Factors - age, marital status, health, education, hobbies, extra curricular actitvites.
Work Environment – working conditions, ralation with coworkers & seniors and their attitude
Home Conditions – distance from residence, mode of conveyance, family size, family problems & responsibilities
Economic Issues – subsidiary economic interests
Regional Aspects – legislations, politics, geographical situations
Organisational Features – type & size of company, work load, nature of work, shift arrangements, management attitude, personnel policies, leave facilities and medical benefits
Social Reasons – religion, community obligations, customs festivals, marriage and death
