Effect on Turnover of the Machine Operators in the Apparel Sector.

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  Introduction:

Currently, Sri Lankan government is been taking steps to foster the growth of the apparel industry because it brings considerable foreign currency to the country. Hence the apparel industry has been rapidly increased and the local economy has depended on this sector’s earning. After four decades, Department of Census & Statistics has reported that the activities of the manufacture sector has been expanded by 11.6% by 2020 (Department of Census & Statistics, 2020). In addition to that apparel sector total export revenue was 4.4 Bn in 2020 (Annual Report, Central Bank of Sri Lanka, 2020).

 

According to DailyFT (2021) reported that the sector has contributed 46.9% of all export in 2020.Other than that, over 350,000 employees are working in the apparel sector which is 15% of the workforce. Among them 85% is represented in women employees. 

 

Nevertheless it has been identified that turnover employees in the sector is increasing rapidly. According to (Rajapakshe, 2018) explained that labor shortage is excessive in this sector due to psychological contracts & explained that total avaerage turnover is 60% per annum in apparel sector. In 2018 apparel survey which is conducted by Department of Census & Statistics, have identified that there is very high demand for Sewing Machine Operators, leads to 40% of total demand and it is the highest demand occupation in the sector.



 


Measurement of employee Turnover:


When employee handed over the resignation it is called “ employee turnover” (Rajapaksha U G, 2008). As per Nawaz (2009) “A permanent movement beyond the boundary of an organization”. According to Marchington & Wilkinson (1996), turnover is calculated by leavers in year by average number of staff in post during year multiple by hundred as below mentioned formula;

 

                       Leavers in year                               ×100

Number of staff in post during year

 

Employee turnover should have got a substantial attention because it’s been a most stubborn issue which leads to increase additional cost and reduce company’s productivity and efficiency. 

 

Voluntary Employee Turnover & Its Impact:

 

According to Nawaz (2009), Voluntary employee turnover (VET) stands for leaving organization with employee’s own intension due to better job opportunity, job dissatisfaction, bad working environment, bad leadership style of the supervisors, less career growth, monetary reward, organizational commitment, employee tenure & employee age etc. High degree of turnover leads to be negative effect for the organizational growth (Rajapaksha U G, 2008) and it is widely believed that VET influences to organizational effectiveness which the level of organizational goals.

 Accordingly, Sri Lanka apparel industry pays poor incentives to employees and Kelegama &   Epaarachchi (2003) stated that employees are not considered allowances only but also consider     psychological factors too. And they leave jobs for better careers with fair salary systems also.

Integration is one of involvement between employer and employee which leads strong relationship as having good friends at work. When having friendly relationship between employees, they are happy to work and give full of contribution for the company. According to Thomas & Martin (1979), “friend” is something beyond just they want. Porter & Steers (1972) stated that turnover is influenced by co-worker behaviors. By Thomas & Martin (1979), discussed instrumental communication, means transmitting information for job roles that have to play is influenced towards turnover.

 

Key impact of employee turnover:


·       Losing skilled and capacity employees to competitors

·     Highly voluntary employee turnover leads low revenue & profitability and less customer satisfaction

·       Tangible side, increase recruitment cost

·        Impact of decreased productivity

·       Impact of negative performance

·       Increase stress related problems & health matters

·       Avoidable time spent for training new employees and loss sales.

 


Bibliography:

       

Department of Census & Statistics, S. L. (2020). Index of Industrial Production. No:18, 2nd Quarter 2020, 1–4.

Rajapaksha U G. (2008). Analysis of Factors Affecting To Employee Turnover in Medium Scaled Apparel Industry in Sri.

Rajapakshe, W. (2018). An Analysis of Major Factors Affecting Labor Turnover in the Apparel Industry in Sri Lanka: Policy Alternations for Solving the Problem. International Journal of Academic Research in Economics and Management Sciences, 7(3). https://doi.org/10.6007/ijarems/v7-i3/4542

 

Comments

  1. Vishwa GunarathnaNovember 12, 2021 at 4:02 PM

    You selected vey appropriate topics to discuss here. Not only Sri Lanka, this topic is related many countries now a days, specially in manufacturing. Trained employees leave from any of the organization, that’s the biggest impact that business which you highlighted here. Good effort & thanks to share this knowledge with us.

    ReplyDelete
  2. UnknownNovember 12, 2021 at 8:24 PM

    Very interesting and timely need topic for manufacturing sector. This provides me a direct guidence to improve my knowledge. Great..!

    ReplyDelete
  3. Kapila MendisNovember 12, 2021 at 11:02 PM

    Great article

    ReplyDelete
  4. Sandya November 12, 2021 at 11:34 PM

    In Sri Lanka apparel industry around 48% of the nation’s exports & around 15% of industrial employment.Employee turnover is identified as one of the critical issue faced by apparel industry.poor hiring decisions and bad management is the main reasons. performance feedback and praise good efforts can reduce the turn over. Create employee recognition programs, make employee comfortable, open lines of communication develop employees can reduce employee turnover. Really important article. Well done 👍

    ReplyDelete
  5. Nuwansiri RathnayakeNovember 16, 2021 at 8:57 AM

    A timely being topic. As we are direct involving to the apparel sector, strongly agreeing with your point. But not only Sri Lanka, this is impacting all the manufacturing sectors in all over the world. Every organizations should focus on this point to reduce the employee turnover by motivate or giving rewards and make better work environment as well.

    ReplyDelete
  6. Thushara WattegedaraNovember 23, 2021 at 7:28 AM

    Apparel trade is really in a treat in Sri Lanka due to the turnover of manpower. This is not only due to common management reasons. There is another fact also there that is the culture of our country. Now the new generation does not want to work in this sector. They want to work in other sectors such as IT marketing. We have to make this industry more attractive. New workers attracting ideas have to bring in. We have to bring knowledge management. with KM we have to show the young generation to feel smarter than before

    ReplyDelete
  7. E127918December 16, 2021 at 11:58 PM

    The Covid-19 pandemic began in China and quickly spread over the world. The extent of the disaster's global impact has yet to be determined. Several efforts have been made by the respective agencies and governments to control the pandemic epidemic throughout this crisis. Different countries implemented different rules and regulations in response to the disaster. The garment industry contributes considerably to Sri Lanka's GDP, accounting for 15% of the country's exports and providing approximately 300,000 direct and 600,000 indirect job possibilities. When it comes to the impact of COVID-19, Sri Lanka is no exception. The garment sector is in high demand from international clients, and most of the raw materials used in its manufacturing are imported from other nations. Due to international transaction restrictions, the COVID - 19 virus has seriously impacted the manufacturing process and the availability of raw materials from suppliers.

    ReplyDelete

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