5549 B77c Brissenden Causes of labor Turnover A A JD 1 1 O 1 > 4 2 1 ^^^^ ^ -1 6 THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES CAUSES OF LABOR TURNOVER BY PAUL F. BRISSENDEN AND EMIL FRANKEL A Reprint from ADMINISTRAnON The Journal of Business Analysis ana Control for November, 1921 UNIVERSITY of CALIFORNIA AT LOS ANGELKS UBRARY NEW YORK THE RONALD PRESS COMPANY 1921 CAUSES OF LABOR TURNOVER BY PAUL F. BRISSENDEN* AND EMIL FRANKELf THE reasons for employees leaving the service of an industrial estab- lishment may be traced back either to purely voluntary action on their part, generally caused by dissatisfaction with the prevailing conditions of employment, or to action initiated by the employer and due either to cur- tailment of industrial activities or to dissatisfaction with the services of certain of his employees. Separations occurring on the employee's own initia- tive are referred to in this article as voluntary separations or quits; and those resulting from the affirmative action of the employer are referred to as lay-offs or discharges, as the circum- stances indicate. In attempting to get some conception of the relative responsibility of the various influences bearing upon the mobility of labor it is highly important to give some special consideration to each of these three types of separations. In the figures presented here on the nature of sepa- rations, "quits" are taken to include all voluntary separations, including withdrawals due to death, marriage, etc. Discharges nearly always mean dis- missal "for cause," which presupposes some form of incapacity for the work or at least what is believed to be some defect in the character of the employee. Under lay-offs are grouped those who are "let out" either temporarily or permanently whether because of the completion of the job or because of shortage of the particular work at which the laid-off employee was en- * Lecturer on Economics, School of Business, Colum- bia University, New York City. t Secretary and Director of the Research Bureau of the Baltimore Federation of Clothing Manufacturers. gaged. Lay-offs are not voluntary separations and have nothing to do with the character of the employee. Lay-offs, moreover, seldom are made for a definite length of time and a large proportion of laid-off employees, as a matter of fact, never return to the same establishment from which they were laid off. The figures presented in this article are based upon the results of extensive investigations of labor turnover made by the United States Bureau of Labor Statistics. The Bureau's inquiries in- cluded (1) a pre-war inquiry made in 1915 and 1916, and reporting in a general way the extent of turnover during the five-year period 1910-1915 and, in more detail for the years 1913 and 1914, not only the causes and extent of it, but also the efforts that were being made to reduce it; and (2) a war-time investigation made in 1918, resulting in an intensive report of the turnover situation for the 12-month period ended May 31, 1918. By the use of material secured by correspond- ence, some of the data from these field investigations were brought down to January 1, 1920. The returns from the two inquiries cover upwards of 260 industrial establishments, employing over 500,000 workers, in 17 of the most important industrial states.^ II The relative extent to which separa- tions take place under the three sets of circumstances (i.e., specified as quits, • For an official summary of the results of these in- vestigations, see the writers' article on "Mobility of Labor in American Industry," 10 Monthiu Labor Review 1342-1362 (June, 1920). 13269 ADMINISTRATION Vol. II No. 6 m ti < w >^ ^ n o 2; > < no w 1— 1 H-; 05 l-H m W l-H M (?o >- n >H J < S a o ?; |s< Q ^ o W z Q H C H ^ P 14 o* an >" w en •z Lh o 1 _] o^ o l-H > H o D3 « ;>< O f^ \^ o Q H !? •< <• k3 M > c: D J a U o ^ 00 I— t a ro U a J o z OK;? H C 2 1H O 5 * o < g- a- u u a < s: a J o u. z, o u W fq m 'I rt (N ■* O If; cc o cc o "S" ro r-l lO ® 00 OS T)< 00 0-• "tl b- 00 00 lO 05 CI -< OO OS >o C^ Ol .-1 CO t^ CD 00 "C o CD CO !-• O ".O CO cq — I IM ■>)• CO M CO CO r^ CO CO •o ■»»< CO t^ r- (M IM 05 00 o (N>nt^co — t^c t»COOW5QOOOO i-iWCOiSWO O •-< N CO -r "3 I'- 0> 0> 0> O) O 0> OS 1 1^ =3 iM rt T«< CO OS CO OS CO 3 OS 00 1^ t~ t^ •* CO t^ t» Q >m m Z o H ■>; b: ■>: ic 03 coocot^^ooo ..H .J <3 ■< hJ H O H b Id t3 ■< 0) Id 03 .a iCOSOt^OCO'* CO ,-1 r-H (N rH C-1 ^ t-1 fH « 2 Q ■*Ov •* o> N t rn « i-oo ov fooo moo H ^-S rH CO OS lO o ■* ■* » 1 2 CO CD CO o •* CO •* 00 o 3 S :3& ^ b: ►^w H M a .2 o ^ ft to a m (N OS CO O "O -H Tf >-| >> OOOrtM wrt '-' d i-I fe « Ph u (- s < to « 1— r~ OS ■* t^ OS ici o j= rtrt rtlNf^ON Q O 00 lO OS "O o ■* o •^ to CO OS O CO t~ CD OS IN s rH^ ,-1 —1 < b: ■< u >< ^ ; ; ; ; ; ;oo T 1 H O •-< (N CO ■* "O t^ OS OS OS OS OS OS OS r-» rH l-H i-t .-«.-< .-( 1 Nwber CAUSES OF LABOR TURNOVER lay-'^,•ffs, or discharges) or the extent to which accessions (hirings) have to be made, ih indicated in this paper by the "rate [of discharge, (total) separation, lay-off, etc ] per full-year worker." The "full-year worker" is one regu- larly employed tlie year round. Thus, if a concern employs 500 men con- tinuously for twelve months and 800 additional men for six months only, the number of equivalent full-year workers would be 900. Eight hundred men working six months, obviously, are the equivalent of 400 men working a full year. [For the purposes of this inquiry, the "full-year worker" is taken to be one employed 3000 hours (300 ten-hour days) during the year.] In Table 1, for example, the "number of full-year workers" is obtained by dividing the number of labor hours (obtained from factory clock or attend- ance records) by 3000. The rates are then computed by dividing the num- ber of changes of whatever sort (dis- . charges, lay-offs, etc.) by the number of 4 full-year workers. Thus, in 1017- ^^ 1918, the employees of the establish- ments studied left voluntarily at the rate of 1.44 for each regularly employed -? worker. In the same period the rate j of total separation was 1.83. It should be noted here that many employers I and employment managers use the expression "percentage of turnover," nearly always signifying by that phrase the number of separations per hundred employees. It will be evident at once that the (total) separation rates given in these pages may be read directly as "turnover percentages" simply by omitting the decimal point. Thus, a separation rate of 1.83 is equivalent to "turnover percentage" of 183.^ In Table 1, opposite page, are given • A more detailed discussion of this method of com- puting labor turnover will be found in an article by P. F. Briseenden on "The Measurement of Labor Mo- bility" 28 Journal of Political Economy 441-476 (June, 1920). the number, rate per full-year worker, and the percentage distribution of all separations, of employees discharged, laid oft", and leaving voluntarily. Fig- ures are shown for each year from 1910 to 1915 inclusive and for the 12-month period ending May 31, 1918. The arresting fact shown in the fol- lowing rate and percentage distribution figures is that the great bulk of all separations today, as in 1910, is due to voluntary leaving. It also appears from these figures that periods of indus- trial prosperity are reflected in rela- tively low, and periods of depression in relatively high, proportions of lay- offs to total separations, and that the lay-off rate is the most sensitive of the three separation rates to changing industrial conditions. Thus, in 1914, when the ratio of quits to total sep- arations was lower than at any other time during the period covered by the figures, the proportion of lay-offs was higher than at any other time, con- stituting nearly one-third (31 per cent) of all separations, while in the imme- diately preceding year 1913 lay-offs made up only 7 per cent of all separa- tions. The rate figures indicate that it is not alone the proportion but also the actual rate of lay-off which is thus affected by business activity and depression, the lay-off rate for 1913 being .10, a relatively low figure, and for 1914, .25 per full-year worker, which is an exceedingly high rate for lay- offs. The discharge rate is evidently subject to less extreme fluctuations than the lay-off rate and it makes up from year to year a more constant proportion of the total separations. There appears, moreover, to be a rather definite relation between the accession and discharge rates due, possibly, to the process of selection which goes on when new workers are taken on in large numbers. The 4 ADMrNISTRATION over 9 t" Table 2. Trend of Accession and of Classified Separation RatesCiN a IMiDDLE Western Metal Products Manufacturing Plant, by Months, FROM 1912 TO 1919^ Year Ended — Average Number of FulltYear Workers Moving Aknual Rate, Per Full-Year Wo^.ker* of- Quitting Lav-o ff Discharge (Total) Separation Accession December 31, 1912 January 31, 1913.. February 28 March 30 April 30 May 31 June 30 July 31 August 31 September 30 October 31 November 30 December 31 January 31, 1914. . February 28 March 30 April 30 May 31 June 30 July 31 August 31 September 30 October 31 November 30 December 31 January 31, 1915.. February 28 March 30 April 30 May 31 June 30 July 31 August 31 September 30 October 31 November 30 December 31 January 31, 1910.. . P'ebruary 29 March 30 April 30 May 31 June 30 July 31 1088 1114 1138 1158 1174 1185 1214 1241 1245 1248 1258 1264 1262 1259 1262 1267 1276 1277 1293 1299 1293 1279 1260 1252 1234 1217 1197 1176 1152 1136 1088 1053 1049 1050 1050 1047 1047 1062 1091 nil 1128 1152 1188 1225 1.23 1.28 1.31 1.24 1.21 1.21 1.28 1.29 1.27 1.26 1.24 1.21 1.14 1.07 1.01 .96 .86 .75 .64 .61 .51 .49 .46 .45 .44 .42 .41 .39 .39 .39 .36 .38 .42 .44 .46 .50 .54 .76 .92 1.17 1.49 1 80 2.00 2.17 .43 .40 .41 .42 .41 .42 .27 .44 .46 .46 .49 .48 .47 .47 .47 .47 .49 .53 .50 .64 .77 .80 .79 .80 .81 .81 .81 .81 .79 .75 .79 .53 .38 .36 .34 .32 .31 .32 .31 .30 .29 .29 .18 .13 .25 .26 .25 .25 .25 .24 .24 .24 .24 .24 .26 .26 .25 .24 .24 .24 .22 .22 .22 .22 .21 .20 .18 .18 .16 .16 .15 .12 .12 .11 .09 .07 .07 .07 .07 .05 .05 .07 .09 .11 .11 .12 .14 .16 1. 90' 1.93* 1.97* 1.91* 1.88* 1.88* 1.80* 1.97* 1.98* 1.96* 1.99* 1-95* 1.87 1.78 1-73 1.67* 1-57* 1.50* 1.36* 1.48* 1.50 1.49 1-43 1.44 1.42 1-39 1.38 1-33 1.30 1.24 1.24 •99 .87 .87 .86 .86 .91* 1.14* 1.32* 1.58* 1.89* 2.21* 2.32* 2-47* (.06) (.05) {■03) ■ 11) .16) ■17) .18) .26) .26) .26) .29) .37) .56) .28) ■U) ■11) .10) .13) 2.20 2.28 2.22 2.14 2.08 2.09 2.18 2.05 2.04 2.02 2.04 1.96 1.81* 1.73* 1.70* 1.71 1.60 1.53 1.51 1.49 1.39* 1.33* 1.26* 1.26* 1.16* 1.17* 1.12* 1.07* 1.01* .87* .68* .71* .73* .76* .76* .73* 1.00 1.31 1.60 1.78 2.08 2.43 2.70 2.76 November 19 2 1 CAUSES OF LABOR TURNOVER Table 2. Trend of Accession and of Classified Separation Rates in a Middle Western Metal Products Manufacturing Plant, by Months, from 1912 TO 1919^ — (Continued) Year Ended — August 31 September 30 . . . October 31 November 30 . . . December 31 ... . January 31, 1917 February 28 March 30 April 30 May 31 June 30 July 31 August 31 September 30 . . . October 31 November 30 . . . December 31 . . . January 31, 1918 February 28 ... . March 30 April 30 May 31 June 30 July 31 August 31 September 30 . . . October 31 November 30 . . . December 31 . . . January 31, 1919 February 28 March 30 April 30 AVEK.^GE Number of Full- Year vvohkers 1249 1281 1314 13j5 1392 1406 1413 1433 1456 14G3 1466 1489 1515 1536 1563 1588 1606 1625 1634 1637 1636 1651 1641 1645 1652 1654 1642 1591 1560 1547 1530 1512 1475 Moving Annual Rate, Per Full- Year Worker' of — Quitting 2.35 2.52 2.67 2.77 2.88 2.86 2.85 3.02 3.03 3.04 2.95 2.87 2.70 2.67 2.56 2.47 Lay-off .12 .10 .10 .09 .09 .08 .08 .07 .07 .08 .06 .03 .03 .03 .04 .04 .06 .06 .06 .06 .07 .07 .07 .06 .07 .07 .46 .51 .49 .49 .54 .56 .67 Discharge .18 .19 .20 .21 .21 .20 .20 .20 .20 .20 .20 .19 .18 .19 .19 .20 .20 .20 .18 .17 .17 .17 .16 .16 .17 .17 .17 .16 .17 .19 .20 .22 (Total) Separation 2.65* 2.8l* 2.97* 3-o8* 3.18* 3-15* 3.12* 3.10* 3.06* 3 -06* 3-05* 3.11* 3-23* 3-35* 3-37* 3.36* 3-33* 3.28* 3.28* 3-27* 319* 310* 3-05 2.95* 2.86* 2.84* 3.28 3-34 3-33 (.03) (47) {.£6) (.07) 3-37* 341 (-07) 3-34 i-lS) 3-38 (.^7) Accession 2.95 3.09 3.32 3.60 3.45 3.25 3.20 3.25 3.21 3.15 3.15 3.36 3.55 3.69 3.68 3.57 3.49 3.45 36 30 29 13 02* 09 90 86 81* 08* 3.26* 3.40 3.34* 3.21* 3.01 • Adapted by permission from an article by P. F. Brissenden on "The Measurement of Labor Mobility," 28 Journal of Political Economy, 454 (June, 1920). 'These are "Bmoothed" rates derived (by the method of "moving averages") from the actual rates for each separate month, which latter, in turn, were computed by dividing the actual number of labor changes of each particular kind that occurred during each month by the number of full-year (i.e., 3000-hour) workers employed during that month. * Those rates of (total) separation which are identical with the rate of replacement are marked with asterisks. In these cases all of the separations are immediately (or very soon) replaced. The unmarked (total) separation rates contain a small proportion (indicated by the labor curtailment rate shown in parenthesis) of separations which are not replaced for a considerable period of time, if at all. The reason that they are not replaced is, obviously, that they are brought about by a more or less permanent reduction of the work-force. 6 ADMINISTRATION Vol. II No. 5 consequence of the stimulating efiFect of business prosperity in boosting the voluntary leaving rates may be seen in the high rates of total separation in spite of the fact that the lay-off rates are relatively low. In periods of depression both the rates and the pro- portions of lay-ofiF and discharge are larger than in periods of prosperity. This is due to the fact that when de- pression sets in there are unusually large numbers laid off and employees are discharged more freely than would be the case when labor is m-gently needed. The influence of the prevailing indus- trial conditions not only upon the separation rate as a whole but more specifically upon the three t^'pes of separation — quitting, lay-off, and dis- charge, which make up this rate — is shown in Table 2, which gives the trend, from 1912 to 1919, of accession (hiring) and classified separation rates in a middle western metal products manufacturing plant. This trend, in so far as the separation rates are con- cerned, is shown graphically in the chart on page 658. Perhaps the most striking fact brought out by this chart is the very close way in which the quitting rate parallels the separation rate, the mar- gin being relatively wide in periods of depression and relatively narrow in periods of great industrial activity. At the period at which the separation rate generally declines the lay-off rate at first shows a decided upward trend but the discharge rate declines even more rapidly than the separation rate as a whole. In tiie period of increasing industrial activity, esi)ocially during the war period, the discharge rate runs along at about the same relatively low level, while the lay-off rate steadily declines, reaching its lowest ])oint at a period which marks the greatest activ- ity in this i)lant. Ill The form of the lay-off rate curve in the early part of the 7-year period shows that it was the great increase in the number of men laid off in the latter part of 1914 that raised the separation rate during that time so considerably above the accession rate. This shows how inaccurate the separation curve would be if taken to measure "turn- over " — unless that term is to be used in reference to something entirely differ- ent from the amount of change in- volved in maintenance, that is to say — replacement. Almost the whole mar- gin, in this part of the period, between the separation and accession rates is due to increased lay-offs, i.e., to a (more or less) permanent decrease in the size of the standard working force. Remarkable reductions took place during the first three-and-a-half years, in both the quitting and discharge rates. When the war began in Europe this establishment had, apparently, gone a long way toward the elimina- tion of discharges as a factor in turn- over. In the three years from 1912 to 1915, it reduced its rate of discharge from .25 to .05 per full-year worker, or 80 per cent. But during the war period from December 31, 1915, to April 30, 1919, the discharge rate in- creased 400 per cent. The most important pre-war reduction is, of course, in the quitting rate, because the quitters are responsible for the bulk of the turnover. This company's quitting rate went down from 1.23 in January, 1912, to .36 in June, 1915, a decline of 71 per cent. But the quit- ting rate increased 357 per cent be- tween December 31, 1915, and April 30, 1919. It is quite evident, as has been pointed out, that it is the quitting rate which primarily determines the total separation rate. The disturbing effect of war condi- November 19 2 1 CAUSES OF LABOR TURNOVER tions is very evident. Both accession and separation rates had risen in 1918 to points far above the high points of the 1912-1915 period. An examina- tion of the accession rate and the different separation rates (shown in Table 2) indicates that the war pushed all rates except the lay-off rate well above the remarkably low points reached in 1915. Worse yet, the chart shows that it pushed all except the lay-off and discharge rates back to a point even higher than the maximum rates of 1912, so that total separation and accession rates and the replace- ment rate, which in this case is identical with the separation rate, rose to points never before reached within the period covered by the figures reported. It is interesting to note the effect of the war on the lay-off rate. During the period 1912-1915 it was reduced 28 per cent. War conditions apparently greatly accelerated this reduction and showed a lay-off rate of .07 per full-year worker for the year ending May 31, 1918, as compared with .31 for the year 1915 — a reduction of 77 per cent. But in the latter part of 1918, the lay-oflF rate began to rise and the rate for the year ending April 30, 1919, stood at .67, the highest it had been since 1915. De- Table 3. Number of Establishments in Which Classified Proportions of the Total Separations are Attributable, Respectively, to Discharge, Lay-off, Entry into Miutary Service, and Voluntary Quitting, 1913-14 and 1917-18 Number of Establishments Percentages OF Total Having Classified Percentages of the Total Separations Due to Employees Having — Percentage OF Total Number of Estab- lishments Having Classified Percent- ages of the Total Separations Separations Separations Due to Been Been Entered Employees Having Dis- charged Laid OflF Military Service Quit 1913-14 5 or less 6 8 40 or less 13 Over 5 to 10 7 10 Over 40 to 50 11 " 10 to 15 13 6 " 50 to 60 12 " 15 to 20 6 4 " 60 to 70 7 " 20 to 25 6 2 " 70 to 80 11 " 25 to 30 9 " 80 to 90 9 " 30 19 18 " 90 to 100 Total 3 Total 66 48 66 1917-18 6 or less 24 39 34 15 43 49 40 or less 3 Over 5 to 10 Over 40 to 50 4 " 10 to 15 22 6 5 " 50 to 60 6 " 15 to 20 13 1 7 " 60 to 70 18 " 20 to 25 5 2 1 " 70 to 80 31 " 25 to 30 3 5 " 80 to 90 37 " 30 1 5 " 90 to 100 Total 9 Total 107 j 68 105 108 ADMINISTRATION Vol. II No. 6 o > H o ^ K U H s;; W 00 fc< 1 t^ f^ O o Q 1— 1 < Q 12; Q 'S< H t— 1 O CO S U 2 ^ § H o § a. H S ^ n ■< H £ !« •^ CO (5 J O Z ■<'T' < f,W JO O « D ^§§ aim « Jj OS a J o Ex. I O B „ * o * J h o 5 u I? H a b 00 5 5'= cw^oo^-c•^'oo ^^ rt lO .-icO-* o_50 IN » 00 in t- NtOIN COrt Tf<0 O0O~. CCOOOO-H •^O-'Jit^'O-HMM p; « :0 a £ _ __ _ — ^ j^ ,^ I-ITJ- l-CCC l-H -HOOroOCOOOiNffiCTi'-i'Hiftoo O'^M'^'-iiNrocDOiMooair^ O 00 ;D CO 00 tO_'^_5D_CT(N CO_t-^(N o>iN ro.-iTO "-leo 05t>-c£M'*'mM(NU5CCiO>0'^ irtrt T}< O lO O -^ to O CO «o 050(M IN 00 M CO -H ■* lO N IC ■>)'t- 50000 CD C<50 o rHM K5 N'O00iO0CO3'*.-it~ .-IOOM'<1< CCINCDOO o:ojooioroicco CS-a-Ot^-^OOCDiOINCOOOCOIN t>-_io o_iN -^.tM Tf cD_ic oc ror-_ OO'r-Tc^" rt a t^ lO r^ '-^ 06 r' cc CD M r-l -H (NIN cOt^Tjo-'IN'-iOr^MiOMO'* cS.I^=i« 3h: 3 = a, ^■5 i*£ C^ u :.c 0) 1/ 4/ « sSCtoH — -, 3 •• c i «■- -n ■ <» Ml :'§1 c3 3 a> i; m °J is O-.i - — j:c::=: ^ t^ C ^^ -1 C rt 3-3 a _,00 .-H'fl'O.-i ■-IMCOOOM— ICDIOC0005-* (NC<5i-i^lM.-i.-i-int>.t»O0 • a R •3 "3 :^l -a bc •"H"^ c •S— °^ jU oj 3 =' '^ ^ V. a.- ^ o O £-g'c"5 He's >. c g fc O ii sooa ^ .2 ^ .£ ^ *j c ^ 3 CO spite the increased war demand for labor the discharge rate increased from .05 in 1915 to .17 in 1918, an increase of 229 per cent. It has continued to rise, and stood at .25 for the year ending April 30, 1919. IV The proportions of the total separa- tions in industrial establishments due to discharge, lay-ofiF, and (voluntary) quitting in the period 1913-1914, and to discharge, lay-off, entry into mili- tary service, and quitting in 1917-1918, are shown in Table 3 (page 655). It is evident that the war period brought about a considerable decrease in the proportion of discharges and in the number of establishments having a heavy proportion of separations due to discharges. The war period had the same effect upon lay-offs, but on the contrary, it brought about a great increase in the number of establish- ments having a heavy proportion of separations due to voluntary leaving. The mobility-rate figures of Table 3 for 66 establishments reporting in 1914 and 107 establishments reporting in 1918 indicate that discharges in 1918 made up over 30 per cent of all separations in less than 1 per cent of the establishments reporting, whereas in 1914 they bulked that large in nearly one-third of the establishments reporting. As to lay-offs, the same figures demonstrate that in 1918 they constituted over 30 per cent of all separations in less than 8 per cent of the establishments reporting, but in 1914 they made up over 30 per cent of all separations in over 37 per cent of the establishments. Voluntary quits in 1918 made up over 80 per cent of all separations in nearly half of the estab- lishments reporting, while in 1914 they constituted this large a proportion in less than one-fifth of the concerns reporting. 10 ADMINISTRATION Vol. II No. 5 November 19 2 1 CAUSES OF LABOR TURNOVER 11 How the relative proportions of discharges and voluntary separations have changed during the last few years may be seen from the figures for a large machine tool manufacturing establish- ment. The percentage of employees leaving voluntarily, as against the total number of separations, for each of the three years ending June 30, 1916, 1917, and 1918, and for the three-months' period, July to Septem- ber, 1918, inclusive, for the day force, were 80, 81, 86, and 92, respectively. The percentages of voluntary separa- tions for the night force, for the same periods, were 77, 82, 91, and 96 per cent, respectively. The ratio of dis- charged employees for the day force for the years ending June 30, 1916, 1917, and 1918, and for the three- month period, July to September, 1918, inclusive, were 20, 19, 14, and 8 per cent respectively. During the same periods the night force showed the following percentages of discharges : 23, 18, 9, and 5, respectively. Quitting became more frequent; firing much less frequent. In Table 4, the subdivided separa- tion rates are classified according to the various industry groups covered in the two investigations. These figures bring out some rather important and significant facts with regard to various industries. It is evident, for example, that mercantile establishments had the minimum dis- charge rate in 1914 and printing and publishing plants in 1918; the minimum lay-off rate in 1914 was in clothing and textiles and in 1918 in printing and publishing; and the minimum quitting rate in 1914 was in the street railway industry and in 1918 in the telephone service. The maximum discharge rate was in the automobile industry in 1914 and in the slaughtering and meat- packing industry in 1918. The maxi- mum lay-off rate in 1914 was in the automobile industry and in 1918 in mercantile establishments, and the maximum quitting rate was in leather and rubber goods in 1914 and in chem- ical industries in 1918. The figures show, furthermore, that in 1914 in the automobile group discharges and lay- offs made up over half of all separa- tions but that by 1918 they had been reduced to less than one-fourth of all separations. In the miscellaneous metal products industries, discharges, and lay-offs constituted in 1914 nearly one-third of all separations but by 1918 they had been cut down to about one- eighth of the total separations. In mercantile establishments, on the other hand, discharges and lay-offs bulk about as heavily among the separations in the earlier as in the later period, making up nearly half of all separations both then and now. An attempt to establish some rela- tion between the particular type of separations and the relative skill of the separating employee is made in Table 5 in which are classified the returns from 22 establishments which reported mobility figures for skilled and unskilled employees separately. The degree of occupational training and skill possessed by the employees appears to make little or no difference in the proportion of quits, discharges, and lay-offs in the total number of separations. The percentage distribu- tion figures show that 76 per cent of the skilled employees and 72 per cent of the unskilled employees who left, did so voluntarily; 15 per cent of the skilled and 19 per cent of the un- skilled were discharged, and 10 per cent of the skilled and 9 per cent of the unskilled employees leaving were laid off. The situation is quite different, however, with regard to the actuaj 12 ADMINISTRATION Vol. II No. 5 Table 5. Comparison of Sepahation Rates of Skilled and Unskilled Employees Leaving Voluntarily, Discharged, and Laid Off During One Year (1913, 1914, and 1915; 22 establishments reporting) Separations During Year Number Rate Per Full -Year Worker' Percentage Distribution Skilled Unskilled Skilled UnskiUed Skilled Unskilled All Separations: Quits 16,484 12,451 2,432 1,601 22,251 16,093 4,171 1,987 .66 .51 .09 .06 1. 41 1.03 .27 .12 100 76 15 10 100 72 Discharges 19 Lay-offs 9 I Based on 74,199,000 skilled-labor hours and 46,980,000 unskilled-labor hours put in during year in the 22 estab- lishments. rate of separation, the figures indicat- ing conclusively that the lay-off, dis- charge, and quitting rates, and, of course, the total separation rate, are each much higher for unskilled than for skilled workers, the total separation rate being .66 for skilled and 1.41 for unskilled workers. The subdivided separation rates show about the same relation between skilled and unskilled so that it would appear that skilled workers are about twice as stable as semiskilled and unskilled ones. VI In Table 6 the relation between the type of separation and the size of establishment is shown on the basis of the mobility figures of the 66 estab- li.shments reporting in 1913-1914 and 108 establishments reporting in 1917- 1918. In the period 1913-1914 there is observable quite a marked decrease in the discharge and lay-off rates as the size of the establishment increases. The explanation for this may be sought in the fact that the large-size estab- lishments were less seriously affected by the industrial depression which made itself felt during that period. The situation is reversed, however, in the period 1917-1918, the discharge and lay-off rates being slightly higher in the larger establishments. In both periods the separation rates as a whole show a slight decrease as the size of the establishment increases. VII The need for definite and detailed information on the causes of labor instability is obvious. In order to devise methods of stabilizing the work force and eliminating unnecessary labor changes it is quite necessary to know the factors responsible for the labor shiftings. It is hardly necessary to call attention in this place to the fact that the causes of labor instability present a very vast and complex problem. It is obvious that a de- termination of these causes, because of their complex nature and the large number of factors to be considered, would necessitate an inquiry of a magnitude quite beyond the scope of the present inquiry. In discussing the November 19 2 1 CAUSES OF LABOR TURNOVER 13 Table 6. Relation Between Size op Establishment and Type of Separation (Discharge, Lay-off, Entry into Miutary Service, and Quitting) 1913-14 AND 1917-18 Number OF Estab- LI8HME1«'8 Number OF Workers Total Labor Hours (Thou- sands) Number of Employees Who — Number of Emplotees Were Dis- charged Were Laid Off Entered Military Service Quit Total 1913-1914 Under 1000 29 29 8 16,097 72.634 77,399 48,291 217,902 232,197 5,929 15,335 9,646 5,512 18,880 10,028 12,014 31.698 46,865 23,455 65.913 66.539 1000 and under 5000 5000 and over 66 166,130 498,390 30,910 34.420 90.577 155,907 1917-1918 Under 1000 67 32 9 32,453 69,182 105,668 97,359 207,546 317,004 7,107 12,952 31,341 3,868 10,201 15,764 4,110 8,125 11,365 56,414 97,097 122,046 71,499 128,375 180,516 1000 and under 5000 6000 and over 108 207.303 621,909 51,400 29,833 23.600 275,557 380,390 Rate, Per Fdll-Yeab Worker, of 1913-1914 1917-1918 Dis- charge Lay- off Entry into Military Service Quitting (Total) Separa- tions Dis- charge Lay- off Entry into Military Service Quitting (Total) Separa- tions Under 1000. . . . 1000 and under 5000 5000 and over.. .37 .21 .13 .34 .26 .13 .75 .44 .61 1.46 .91 .87 .22 .19 .30 .12 .15 .15 .13 .12 .11 1.74 1.40 1.16 2.21 1.86 1.72 All establish- ments .19 .21 .55 •95 .25 .14 .11 1.33 1.83 underlying reasons for separations we are disregarding here the separations from service due to purely industrial conditions and fluctuations in produc- tion, that is to say, forced separations, or lay-offs, the occurrence of which depends upon whether or not a par- ticular job has been finished or whether or not industrial depression has set in. No attempt is made here to discuss that part of the labor shifting which is due to maladjustment of labor supply and demand caused by an unorganized labor market, by a defective system of labor distribution, or by maladjust- ment in the matter of wage levels for similar work in different localities, etc. In view, therefore, of the complexity of the problem and the lack of informa- tion on the subject it is intended to discuss here, not the causes of mobility that are primarily inherent in the industrial community situation, but the more personal causes of labor shifting as those causes find expression in the separating employee and as they have been classified by individual employers. It is recognized, of course, that the non-industrial and personal causes are inextricably interwoven with the conditions created by the prevailing industrial situation. 14 ADMINISTRATION Vol. II No. 5 In their eflForts to stabilize the labor force a number of firms have made attempts to discover the causes of instability and more particularly to find out the immediate, or precipitat- ing, causes for separations from service. They have done this on the assumption that if it were feasible to ascertain the fundamental reasons why men leave their employ, it would be possible, through the tabulation and analysis of those reasons to show the real causes of instability. It was felt, moreover, that if it were practicable to ascertain the real reasons for employees leaving it might then be relatively easy to develop a record which would be of considerable value in the solution of the employment problem in the indi- vidual establishments concerned, and so point the way toward greater sta- bility. Even in this individual method of ascertaining the causes for labor insta- bility there are serious diflSculties to be overcome. Employment managers and others in charge of the work force essay to interview an employee who is about to leave of his own accord. This interview is held, of course, before the employee actually severs his connec- tion with the firm. At the interview the employer or his agent tries to secure a frank and truthful statement from the employee regarding the actual reasons which are impelling him to leave. Employers point out, however, the difficulties involved in interviewing prospective quitters. They say that it is difficult to do this even in normal times and that it was especially difficult during the war period because of the more independent attitude assumed by the workers. It is generally found that men leaving service do not like to l)e questioned too closely regarding their reasons for leaving and often I)lainly resent such inquiries. It is claimed that in many cases they give some fictitious excuse rather than a substantial reason and when pressed advance the most plausible reason they can get away with. From the standpoint of the worker it is perhaps not difficult to understand his reluc- tance to give full information regarding his reasons for leaving. Such knowledge in the possession of the employer might be disadvanta- geous to the employee in his search for a new job and it might in other ways have the effect of restricting his free- dom of movement. The employee will have observed that nearly all employment departments keep careful records of employees' past history and that employers generally keep each other informed about the movements of former employees. To the diffi- culties of ascertaining from individual employees the reasons for their leaving there must be added the difficulty of analyzing and classifying the results obtained. It has been the experience of men interviewing prospective quit- ters that even where the reason for quitting has been obtained it has not always been easy to reduce to a single classifiable category the manifold motives which may have animated the individual in his desire to change jobs. Many employment managers believe that only in the case of discharges can the causes of separation really be definitely known. This is obviously because action in the case of discharge proceeds from the management and the employee has nothing to say about it. VIII For the reasons given in the pre- ceding j)aragraph, the figures on causes for quitting which are presented below cannot be regarded as more than an indication of existing conditions, al- though emi)loyers who have kept such figures have expressed the opinion that November 19 2 1 CAUSES OF LABOR TURNOVER 15 in most cases they point definitely toward certain existing maladjust- ments and to particular causes that need to be attacked. In Table 7 are given the classified assigned reasons for the voluntary separation and the causes for the discharge of nearly 10,000 employees in six metal trades in one form or another enters into most of the specified reasons for leaving. For those classified under "better jobs" the question of wages is not supposed to have been the prime mo- live in making the change, but the governing causes for leaving were said to have been more desirable work, the Table 7. Reasons Advanced for Voluntary Separation from Services of 8140 Employees and Causes for Discharge of 1439 Employees, in 6 Metal Trades Establishments Reason for Voluntary Separation Cases Cause of Discharge Cases Num- ber Per cent Num- ber Per cent Wages — Dissatisfied with Wage Rate, Etc Obtained Better Job or 2001 984 410 674 218 461 453 131 58 737 2013 24.6 12.1 5.0 8.3 2.7 6.7 5.6 1.6 .7 9.0 24.7 Incompetent Unreliable 478 422 148 66 93 54 105 73 33.2 29 3 Lazy 10.3 Retiirnefl to Former Job Careless 4.6 Nature of Work — Too Hard, Heavy, Wet, Diistv, Dirty Insubordination Misconduct Trouble breeder Liquor 6.5 3.7 7 3 Dissatisfied 5.1 Monotony Total Physical Inability — Sick- ness, Injuries, Etc Leaving Town Return to School All Other Known Reasons Military Service Unknown — Failed to Re- port Total 8140 100.0 1439 100 establishments. Some of the reasons or causes listed in a number of these groups'. have been briefly amplified. Dissatisfaction with wages is evi- dently the largest single reason for voluntary separation, and no doubt it is safe to assume that the wage motive • a more detailfd and scientific classification was im- possible because of the necessity for making a combina- tion of the records of the various establishmcnta, each of which put a somewhat different interpretation upon their recorded reasoni for leaving or cau~c8 for discharge. location of the plant, etc. Under "nature of work" are classed a con- siderable number of quitters who mider the stimulus of higher wages or the " work-or-fight" order entered mechan- ical occupations, but not being accus- tomed to the grease, dirt, noise, etc., inherent in the nature of the work, constantly have shifted in the hope of finding more pleasant work. It has been stated that the relative ease with 16 ADMINISTRATION Vol. II No. 5 which a job could be secured during the war period made workers more ready to throw up jobs which seemed undesirable to them but which in normal times they would be reluctant to leave. For those classified under "dissatis- fied" no one specific reason seems to have been applicable. Employment managers believe that the question of wages or work is seldom a factor with this t\T5e of labor, but that its desire to shift is due largely to an inherent instability and that persons of this type are unable to assign any specific or logical reason for their desire to change. Employment managers believe these considerations to be equally true of a large number of those who failed to report before leaving. It is said that the number of employees leaving in this manner during the war period was greater than at any previous time. This is explained by the fact that the shortage of help necessitated the em- ployment of the so-called "floater," a type of workman which in normal times would not be employed at all by these concerns. It has been found to be characteristic of employees of this type that they never .stay on a job for more than a brief period, soon dropping out, without giving notice, to accept work elsewhere. Under "incompetent" employment managers have classified certain work- ers who after a trial have been found to be unfit or imsuited for the work for which they were hired. It was pointed out that althotigh those persons were willing to work they were found to l)e incapable of learning the work and were responsible for a great deal of spoiled work. This group also in- cluded workers who misre])resente(l their occupational skill when taken on, as, for exainj)h', l)y using certain acquirefl phrases that would indicate familiarity with the kind of work required of them. The number dis- charged for incompetency, it is as- serted, increased during the war period because the urgent need of men made careful selection less possible. The management has classified those as "unreliable" whose attendance record was bad, who were habitually late in the morning, or who were prone to lay off too frequently and for trivial reasons. A good many of those dis- charged for being unreliable are sus- pected by employment managers of having looked for jobs, and possibly of having tried out jobs, in other plants, while absent. Employment managers have classi- fied as "trouble breeders" those who have attempted to create dissatisfac- tion among their fellow workers by urging or intimidating them to con- certed action of some sort, as for instance, the unionizing of the shop or the presentation of demands for wage increases, revision of piece or premium rates, etc. The relatively large number discharged for being "trouble breeders" may, perhaps, be explained by the fact that it is the policy of the estab- lishments from which the figures of the above table have been secured to deal with their industrial workers only as individuals. IX A somewhat detailed record of the number of people who left the employ of a large mail order house during 1917 has been compiled and is given in Table 8. During the year 1917 there occurred in this establishment 22,700 separa- tions. Of this number 5204 or 22,9 ])er cent, were due to reduction of force, 98'J or 4.3 per cent due to en- trance into military service. Of the remaining separations, with the causes of which we are here specifically con- cerned, 13,664, or 60.2 per cent of all, November 19 2 1 CAUSES OF LABOR TURNOVER 17 Table 8. Reasons Advanced for Voluntary Separation from Service of 13,664 Employees and Causes for Discharge op 2849 Employees, During 1917, in a Mail Order House Cases Cases Reasons for Voluntary Separation Cause for Discharge Num- ber Per cent Num- ber Per cent Other Positions: More Promising Posi- 2080 1109 268 44 48 62 2047 229 823 755 221 273 134 107 93 67 92 565 810 2527 1310 15.2 8.1 2.0 .3 .4 .5 15.0 1.7 6.0 5.5 1.6 2.0 1.0 .8 .7 .5 .7 4.1 5.9 18.5 9.6 Unsatisfactory : Too Slow 776 352 255 309 56 473 327 79 44 13 8 157 27 2 tion Indifference Carelessness Irregular Attend- ance 12 4 Better Salary 9 Former Position and Re- turn to Trade 10 8 Going into Business. . . . To Learn Trade Position Nearer Home. Leaving City References Dishonesty (Sus- pected of Pilfer- ing, etc.) Insubordination Drinking 2.0 16 6 To Marry 11 5 On Account of Health. . . . 2.8 Dissatisfied : Fighting 1.5 With Working Condi- tions Financial DiflBculties . Enemy Aliens Other Causes Total .5 3 With Salary 5 5 Work Too Hard Resented Criticism .... Refused to Be Trans- ferred Refused Temporary Work Did Not Like Supervi- sion Distance Too Great .... To Go To School To Stay At Home No Reason : Worked Less Than Two W^eeks Failed to Report .... Worked More Than Two Weeks Failed to Report .... Total 13,664 100.0 2849 100 were voluntary, and 2849, or 12.6 per cent of all, were due to discharges. It will be seen from the figures of Table 8 that of the total number of voluntary separations about 25 per cent resulted from employees having obtained either more promising posi- tions or positions which offered higher wages. The number "leaving city" seems to represent a considerable 18 ADMINISTRATION Vol. II No. 5 Table 9. Numbeb, Per Cent Distribution, and Annual Rate Per Full-Year Worker of Employees Hired and Rehired and of Those Leaving for Specified Reasons in Year Ending October 31, 1918 (Department Store) Number Per Cent Distribution Rate Per Full- Year Worker 1 Accessions : - Hired New 908 223 80 20 1.01 Rehired .25 Total Accessions 1131 100 1.26 Separations: Discharged — Incompetent 21 13 8 8 5 4 2 1 34 21 13 13 8 6 3 2 .02 Misconduct .01 Careless .01 Unreliable .01 Trouble breeder .01 Dishonest 3 Lazy 3 Insubordinate S Total discharged 62 100 .07 Laid off 431 .48 Left voluntarily: Wages 228 154 135 127 117 75 48 45 39 24 22 61 21 14 13 12 11 7 4 4 4 2 2 6 25 Family Moving 17 Other Position 15 School 14 Ill Health 13 Needcfl at Home 08 Di.ssati.sficd 05 Vacation; Needed Rest 05 War 04 Marriage (Women) 03 Work Too Heavy or Disagreeable All OMkt Reasons* .02 .07 Total Ixft \'oliintariIv 1075 100 1 18 Total Separations 1568 I 73 • Hiuwd on ■Innclard working force of 890 ''ll-ycar workers. ' For nine- rrionthii indinK Ort. 31, 1018. • I>iiii than fKJ.I • " l^nvinir city," 3.3; "going intocMcntial work," 0; "RoinK into business," 3; on account of "housing conditions, 2; rraitoDs unknown, 17. November 19 2 1 CAUSES OF LABOR TURNOVER 19 proportion of the total number leaving. It is very doubtful, however, whether this number really left the city; it is quite likely that in the majority of the cases it was only a proffered excuse. Those who were dissatisfied for various reasons number 12.8 per cent of the total. A significant commentary on the whole stability situation in this establishment is implicit in the rather large number of persons who simply dropped out of service without giving any notice of leaving either in advance or subsequently. Nearly 30 per cent of the total number leaving volun- tarily left without giving notice. Among the establishments whose labor turnover experience was exam- ined in some detail by the Bureau of Labor Statistics was one of the largest department stores on the Pacific coast. This store went to no little trouble to ascertain the reasons for employees quitting and to tabulate not only the number quitting for various assigned reasons but also the number discharged for specified cause, assigned, naturally, by the company. This concern also kept account of the proportion of those rehired to new accessions. A full analysis of these records is given in a special report* published by the Bureau of Labor Statistics on the turnover experience of this department store. The tabular summary which appears in that report is herewith reproduced, with some modification, in Table 9 on page 665. •"Employment Policy and Labor Stability in a Pacific Coast Department Store," by P. F. Brissenden, 9 Monthly Labor Review 1399 (November, 1919). The only classification of the acces- sions is into "hired new" and "re- hired." During the nine months for which data were available, it appears that 20 per cent of all of those hired had been in the company's service at some previous time. Among the rea- sons assigned for discharge the most frequent seems to have been incom- petency, "misconduct," carelessness, and unreliability. Among those leav- ing voluntarily the most prevalent reasons given are dissatisfaction with wages, desire to take another position (which in some cases is desired because of the higher wage offered) family moving out of town, going to school, and ill health. Using the last column as a basis, it is evident that during the year reported, for each 100 full-time workers employed there were 101 entering the store as new employees, and, in addition, 25 former employees rehired. Turning to the separations, which are our primary concern here, it appears that, for every hundred full-time workers employed, there were 173 separations; 7 of these were dis- charges, 48 were lay-offs (on account of lack of work) and 118 were quits. Scrutinizing the latter more closely, we find that 25, for every hundred employed, quit on account of unsatis- factory wages, 17 quit because the family was moving, 15 on account of another job, 14 to enter school, 13 because of ill health, 8 because needed at home, 5 because "dissatisfied," the same number for a vacation (without pay) or a needed rest, and 4 for war work. 113269 I m UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. ■ri' mR 1^^^^ REr:[:\vAL LQ URL RENEWAC ..Art 1 t^iQ7e LDyjBL WAJl 151375. Uf.. ^ WAY 84 4UN22197B .CitC \^^ ^\)6^C RENEWAL MARJk-(W LO URL , ^,3Th Form L9-32m-8,'57(,C8680s4)444 i?, APR 18 1976 REC'D lO-URC s. i lOboi RECD LD-URL MAY 1 2 198Z RENEWAL ...^ . ., ,,. -^ LDURL i(^(f5-M UW^^ •OKNIA LOS ANGELES LIBRARY THE LI13RAKY UNIVERSITY OF CALIFORNIA LOS ANGELES PAMPHLET BINDER Syracuse, N. Y. Stockton. Colif. 3 1158 00730 3109 UC SOUTHERN REGIONAL LIBRARY FACILITY AA 001 114210 6 «^- ., *, ' ■■''mv^m 'm^:mi M