TURNOVER, COST EFFECTIVENESS OF INTRODUCING TRAINING POOL AND ITS IMPACT ON PROFITABILITY
BUSHRA AMEEN
Karachi University Business School, University of Karachi, Pakistan.
MUHAMMAD ASIM
Karachi University Business School, University of Karachi, Pakistan.
SHEIKH ABDUL KHALIQ *
Department of Pharmacy Practice, Hamdard University, Karachi, Pakistan.
*Author to whom correspondence should be addressed.
Abstract
Purpose: Textile industry of Pakistan holds an exceptional value for the economy. It contributes 57% to the exports, 8 % in Gross Domestic Product and 40 % employment. Even though, its growth is deteriorating due to the tough competition in Global market, high cost of production, Energy shortages, Lack of proper infrastructure and state-of-the-art equipment. Employee’s turnover is the significant factor extremely hurting the industry.
Methodology: Research design included data collection, data measurement and data analysis of textile industry with approximately 7000-8000 employees from 2016-2018. It is conducted by administration of structured questionnaire and interviews of Human Resource Professionals and Supervisors of the worker Cadre.
Value: Research is evaluating the impact of dysfunctional turnover on production and performance of existing employees and the ways to dealt with it.
Findings: Employee’s turnover is the acute reason for growth decline. Study reveals that in 3 Years mean turnover is 10.83% which has significantly reduced the production (p=0.0001) & performance of existing workers (p=0.0001).
Implications: Technical trainings has improved the worker’s skills and significantly reduced the number of shipments returned due to quality issues (p=0.012). Hence Training & Development are the necessities to meet the production targets with required quality standards.
Keywords: Organization performance, in-house training, turnover, skilled work pool, textile sector