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 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) 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) More male salesperson should be employed.

2) Other facilities like transportation should be provided.

3) Training should be provided.

4) 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) 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.

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:

21

49

Meena Bazar

Number of salespersons

MALE Female

28

7

Agora

Number of sales persons

Female Male

5

20

Nandon

Number of salespersons

Female Male

Termination of Employees:

85

80

90

Percentage of men terminated for

voluntary reasonMeena Bazar Agora Nandon

15

20

10

Percentage of men terminated for

involuntary reasonMeena Bazar Agora Nandon

Employees Hired by the Superstores

5

6 6

Avarage number of days taken for leave reasons per employee

Meena Bazar Agora Nandon

30

20

80

Pencentage of Men Hired

Meena Bazar Agora Nandon

70

80

20

Percentage of Women Hired

Meena Bazar Agora Nandon

95

97

98

Percentage of sick leave usage

Meena Bazar Nandon Agora

10

15

20

Average number of sick days taken per

employee

Meena Bazar Agora Nandon

56 6

Avarage number of days taken for leave

reasons per employee

Meena Bazar Agora Nandon

5

6 6

Avarage number of days taken for leave

reasons per employee

Meena Bazar Agora Nandon

85

80

90

Percentage of men terminated for

voluntary reason

Meena Bazar Agora Nandon

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) More male salesperson should be employed.

2) Other facilities like transportation should be provided.

3) Training should be provided.

4) 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.

95

97

98

Percentage of sick leave usage

Meena Bazar Nandon Agora

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) Rumuneration should be increased.

2) Transportation facility should be provided.

3) More employee should be employed to reduce pressure.

4) Proper training should be provided to motivate employees.

5) 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.