3.5.3 Human Resources

Question 1

Why do employees skive/leave?

Answer 1

• Job or workplace is not what was expected.
• Mismatch between job and person.
• Too little coaching and feedback.
• Few too growth and advancement opportunities.
• Employees feel devalued and unrecognised.
• Stress form overwork and a work/life imbalance.
• Loss of trust and confidence in senior leaders.

Question 2

Productivity

Answer 2

Output per unit of input.

Question 3

Labour productivity

Answer 3

Output per employee.

Question 4

Labour productivity formula

Answer 4

Total Output/Number of workers

Question 5

Factors influencing labour productivity

Answer 5

• Skills, ability and motivation of the workforce.
• Extent to which workforce is trained and supported.
• Extent and quality of non-current assets (e.g. equipment, IT systems)
• External factors (suppliers)
• Methods of production.

Question 6

How can labour productivity be improved?

Answer 6

• Invest in employee training.
• Measure performance and set targets.
• Financial incentives.
• Improve working conditions.
• Invest in capital equipment.
• Streamline production process.

Question 7

Labour turnover

Answer 7

The percentage of the workforce that leave a business withing a given period.

Question 8

Labour turnover formula

Answer 8

Number of employees leaving/Average number of employees x 100

Question 9

Causes of high labour turnover?

Answer 9

• Poor recruitment.
• Weak induction.
• Lack of challenge.
• Low pay rates.

Question 10

Problems of high labour turnover?

Answer 10

• Higher costs of recruitment and training.
• Increased pressure on remaining staff.
• Disruption to production/productivity.
• Harder to maintain required standards of quality and customer service.

Question 11

How can labour turnover be improved?

Answer 11

• Effective recruitment and training.
• Provide competitive pay and other incentives.
• Job enrichment.
• Reward staff loyalty.

Question 12

Labour retention

Answer 12

The ability of a business to convince its employees to remain with the business.

Question 13

Labour retention formula

Answer 13

Number of staff staying over a period/Average number of staff in a time period x 100

Question 14

Factors influencing a businesses ability to retain staff?

Answer 14

• Pay and other rewards.
• Opportunities for promotion.
• Working conditions.
• Competitor actions.
• Standard of recruitment.
• Economic conditions.
• Labour mobility.
• Employee loyalty.

Question 15

Absenteeism

Answer 15

An employees intentional or habitual absence from work.

Question 16

Absenteeism formula

Answer 16

Number of work days lost through absence/Total possible days worked x 100

Question 17

Causes of absenteeism

Answer 17

• Serious accidents and illness.
• Poor working conditions.
• Stress.
• Lack of job satisfaction/boredom.

Question 18

Why is absenteeism a significant issue for a business?

Answer 18

• Significant cost – sick pay, temp cover.
• Output reduced.
• Other staff demotivated if have to cover absent workers.
• Wider culture of absenteeism develops.

Question 19

How can absenteeism be improved?

Answer 19

• Introduce more flexible working practices.
• Ensure jobs are interesting and challenging.
• Improve working conditions.
• Introduce attendance bonuses.
• Have a clear sickness and absence policy.

Question 20

Human resources strategies to improve employee performance.

Answer 20

1) Financial rewards.
2) Shares in the company.
3) Consultation.
4) Empowerment.