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Sign up freeThe Cordele Dispatch
Cordele, Crisp County, Georgia
What is this article about?
Article discusses high costs of labor turnover in manufacturing and railways, estimating millions in annual losses, and advocates steady employment as a solution, especially crucial during wartime for efficiency and worker stability.
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Actual figures offered on the loss to
manufacturing concerns, railways, etc.
caused by the "hiring and firing" habit
are startling. A writer in "Engineering
and Contracting" asserts that the
railroads alone have paid as high as
$40,000,000 annually for the wasteful
practice of labor turnover.
The turnover in factories runs from
50 up to 400 per cent of the total number
of people actually needed for production.
The railways employ annually
a million more men than they have
places to fill, this huge number of
shifting employees representing a
serious handicap and loss in pay
and efficiency.
It costs $10 to replace an unskilled
laborer, $300 to replace one skilled in
a year in one industry alone!
Facing such facts, employers
are studying the turnover problem. They
are coming to realize that it's cheaper
to train an incompetent worker to fill
his job satisfactorily than it is to keep
on trying out a series of incompetents,
until the man for the job is found.
The problem is of special importance
in these days when labor is so
essential to all our progress in winning
the war. Steady employment is
needed to prevent loss of time and
material and product. For the worker
himself, his family and the community
in which they live, the loss of this
constant shifting from job to job is
equally serious, although there is no
means of measuring it. Steady employment
is his key to progress and self
respect.
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Story Details
Story Details
The article highlights the staggering financial losses from labor turnover in industries and railways, with railroads losing up to $40 million annually and factories experiencing 50-400% turnover. It costs $10 to replace unskilled and $300 for skilled workers. Employers are realizing the benefits of training over constant hiring. Steady employment is vital during wartime for efficiency and worker well-being.