3.5.3 Human resources

Question 1

what are key measures of HR performance?

Answer 1

-labour turnover and staff retention
-labour productivity
-abseenteism

Question 2

what is labour turnover?

Answer 2

the percentage of the workforce (employees) that a leave a business within a given period (usually a year)

Question 3

how is labour turnover calculated?

Answer 3

labour turnover = (number of employees leaving during period / average number employed during period) x 100

Question 4

we don’t want high turnover because…?

Answer 4

-increased recruitment costs
(advertising, training, interviews)
-increased pressure on remaining staff
-disruption to production/productivity
-harder to maintain required standards of quality and customer service