3.5 Human Resources Flashcards
Labour productivity
Measure of output per employee
Labour productivity formula
Total output/Average number of employees
How to increase labour productivity?
New machines
Train up employees
Labour turnover
Measures proportion of employees leaving during a specific time period
Labour turnover formula
Number of staff leaving/Average number of
staff x 100
Rise of labour turnover can indicate
Poor management
Poor recruitment and training
Low wage levels
What’s an external factor which can affect labour turnover?
Being attracted to working opportunities outside business
Problems with labour turnover
Increased recruitment and selection costs
Increased induction and training costs
Lower productivity levels as new workers settle into role
How to increase labour turnover?
Improve working conditions
Improve pay in regards to the industry
Labour retention
Measures proportion of employees remaining in business at a specific period of time.
Labour retention Formula
Number of staff remaining/Average number of workers x 100
What does high levels of labour retention mean?
Few staff are leaving at that period of time.
Absenteeism
Measures proportion of staff absent from work during a specific period of time
Absenteeism Formula
Number of staff absent/number of staff
employed x 100
Problems from high levels of absenteeism
Requires payment of sick pay
Hiring temporary staff increases costs
Output likely to be reduced
