TURNOVER, COST EFFECTIVENESS OF INTRODUCING TRAINING POOL AND ITS IMPACT ON PROFITABILITY

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.