Abstract
This study compared the causes of labour turnover in Coca-Cola Plc and Seven Up Plc. in Lagos, Nigeria. They are the major producers of soft drink in Nigeria. Labour turnover costs soft drink industries in Nigeria considerable amount of money yearly in recruiting and training replacements. It is an economic drain to the industry. A sizeable income is also incurred through new employees that are more prone to accidents, causes more breakages and make more mistakes than experience workers. Other loses are also incurred through reduced production, work disruption and increase scrap and overtime as a result of departed workers. A cross-sectional survey was utilized to collect data for answering research questionnaires and testing hypothesis in this study. The data collected from questionnaire instrument were also analysed using percentages (%) and Z-test for comparing two proportions. Comparative analysis of the data showed that Seven Up Plc. rated unwillingness to perform as major cause of discharge while Coca-Cola Plc. rated attitudinal causes. Both companies rated unsatisfactory pay as the major cause of resignation. Seven Up Plc. was not significantly better than Coca-Cola Plc. on a hypothesis testing about the difference between proportions of samples. The Null hypothesis assumed that there were no difference in parameters and that the difference observed between sample percent was due to chance.
Highlights
Labour turnover is the sum of the aggregate accession and Separation rates
Direct costs relate to leaving costs, replacement costs and transition costs and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale (Bureau of Statistics, 2008). These are direct and indirect effects of labour turnover resulting from the causes of labour turnover we want to compare in soft drink bottling companies in Nigeria namely Coca Cola Plc and Seven Up Plc
A comparison of causes of discharge between 42 respondents from Seven Up Plc. which constitutes 28.52% of response rate and 41 respondent from Coca-cola Plc which constitutes 27.18% of response rate, in Table 2 showed that 35.71% respondents from Seven Up Plc. rated unwillingness to perform as the major cause of discharge while 36.59% of respondents from CocaCola Plc. rated attitudinal causes
Summary
Labour turnover is the sum of the aggregate accession and Separation rates. The accession rate is calculated as a sum of aggregate flow from unemployment to employment, from inactivity to employment and from one employment to another, divided by initial or average employment in a given year (Burgess et al, 1997). Direct costs relate to leaving costs, replacement costs and transition costs and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale (Bureau of Statistics, 2008) These are direct and indirect effects of labour turnover resulting from the causes of labour turnover we want to compare in soft drink bottling companies in Nigeria namely Coca Cola Plc and Seven Up Plc. Coca Cola Plc and seven Up PIc are private companies. Considerable time, efforts and money are poured into attracting, selecting and training employee, and too little of the same are directed towards keeping them It is worthwhile knowing the causes of labour turnover in Soft Drink Bottling Companies because of the numerous problems associated with labour turnover and its attendant effect on the productivity and effectiveness of an organisation. Additional turnover is usually created and there is difficulty in recruiting new staff if the departing staff with bad feeling influences the attitude of others towards employer
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