The right person should get the right treatment from the management. The promotion policy should be very transparent so that there is no ill-feeling amongst the employees. The work culture of the organisation should be healthy so that everybody can do his best. If right candidate is selected for right job, the chance of labour turnover will be minimum.Ĥ. At the time of selection and placement the objective should be clear. However, the same candidate may be suitable for back office work. For example, very intelligent but ‘shy’ candidate may not be suitable for sales department. At the time of selecting employees, some scientific approach should be adopted. Scientific System of Recruitment, Placement and Promotion – Different employees are suitable for different jobs. Job Analysis and Evaluation – To find out suitable employee for particular job, the job evaluation and job analysis should be undertaken before recruitment.ģ. Exit Interview – To ascertain the reasons for leaving the organisation, the personnel department may arrange an exit interview for each out-going employee.Ģ. Generally, the following steps are taken to minimise the labour turnover:ġ. A study of the reasons for labour turnover will normally indicate the steps which management should take to reduce its occurrence. Therefore, it is the responsibility of the management that there should be minimum labour turnover. Labour turnover affects the smooth working of the organisation. Labour turnover is unavoidable but high labour turnover is not a good sign for any organisation. Remedial Steps to Minimise Labour Turnover : Many organisations are treating the training and related cost as administrative overheads.

The cost of training is charged to different departments according to the number of employees trained as production overhead. Generally, an average cost per worker trained is ascertained from the above account. This account will be debited with the wages of the learner during the period of training, salary and other allowances of the instructors, the cost of materials, incidental expenses relating to facilities provided for training. In the cost ledger, a separate account should be set up to record the cost of training. Treatment of Labour Turnover Cost in Cost Accounting :

Turnover number