Labour Turnover and Labour Productivity in a Retail Organization
نویسندگان
چکیده
Labour Turnover and Labour Productivity in a Retail Organization We study the impact of labour turnover on labour productivity using a panel dataset of 347 shops belonging to a large UK clothing retailer over1995-1999. For the within-shop link – holding constant the shop’s permanent characteristics – we observe an inverted U-shape effect of labour turnover on productivity. The productivity-maximizing rates of FTE-adjusted quits and hires are each about 20% per year, improving productivity by 2.5% compared to the zero turnover level. We explain the difference between this optimal level of labour turnover and its observed average (quits and hires each around 10%) through the costs of hiring estimated at about £600 per hire. By contrast, between shops, there is a positive link between average rates of turnover and average productivity, suggesting that an unobservable management quality factor generates both high turnover and productivity, which we discuss. JEL Classification: J63, J24, L81
منابع مشابه
Labour Migration and Rural Agricultural Production in Southwestern Nigeria
In recent years, Nigeria witnessed significant labour migration coupled with reduction in rural agricultural productivity. Youths abandoned farms for ventures with high returns and less drudgery in cities thus labour availability in peak agricultural seasons became scarce. The declining farm population constituting mostly women and old men are not capable of producing sufficient food for the no...
متن کاملWage policy, employee turnover and productivity
In this paper, we are interested in the effect of pay incentives on labour turnover and productivity. Particularly we use personnel data from a panel of 400 shops from a UK retail chain. The firm uses perfectly flat hourly wage system with no reward for tenure or individual productivity. This system leads to the phenomenon of negative selection, where only employees with lower outside options r...
متن کاملAnalyses of Labour Productivity among Small-Holder Cassava Farmers for Food Security and Empowerment in Central Madagascar
Labour productivity affects food security, but quantifying this relationship has been scarce with respect to empirical literature. The Central Madagascar dataset explores the influence of labour productivity and related variables on the food security status of cassava farmers. Drawing on both theory and empirical evidence, this paper argues that fundamental effects of links between labour produ...
متن کاملCompliance with Labour Rights and International Labour Standards: Implications for Workplace Productivity and Competitiveness
The common perception, particularly among employers of labour is that enforcement or implementation of enhanced labour standards would negatively impact on overhead costs thereby impeding the organisation’s competitive advantage through price mechanisms at both national and global marketplace. The purpose of this paper is to provide an analysis and draw inherent relationships between enforcemen...
متن کاملEstimation of the Number of Workers Subjected to the Labour Law
Abstract. Employees include a main part of labour force in each country. This group is so important since a long time ago, International Labour Organization has allocated lots of its indicators such as decent work ones to the group. On the other hand, the employees in Iran are subject to the various employment laws that one of them is the labour law. According to the labour law, the Ministry of...
متن کامل