3.6.2 Analysing human resource performance

Question 1

How do you calculate labour productivity?

Answer 1

output per period / number of employees per period

Question 2

How do you calculate Unit Labour Costs?

Answer 2

total labour costs / total units of output

Question 3

How do you calculate Employee Costs as a % of Revenue?

Answer 3

Employee costs / sales turnover x 100

Question 4

How do you calculate absenteeism?

Answer 4

staff absent / total number of staff

Question 5

How do you calculate labour turnover?

Answer 5

number of employees leaving during period / average number employed during period

Question 6

How do you calculate labour retention?

Answer 6

number of employees for one year or more / overall workforce number x 100

Question 7

Explain why analysing data for the workforce is crucial to human resource decision making and planning.

Answer 7

Analysing data for the workforce is crucial to human resource decision making and planning because the company needs to know that the workforce is working effectively and efficiently, and that they are meeting the demands of the firm in order to meet the objectives set by the business for the future.

Question 8

What are categories involved in HR Objectives and planning?

Answer 8

• Employee engagement and involvement
• Talent development
• Training
• Diversity
• Alignment of values
• Number, skills and location of employees

Question 9

State HR Objectives that are related to employee engagement and involvement

Answer 9

• Maximise reported levels of engagement
• Extent of satisfactorily completed appraisals

Question 10

State HR Objectives that are related to talent development

Answer 10

• Investment (level) in employees training
• Staff retention rates
• Percentage of job vacancies filled by internal candidates

Question 11

State HR Objectives that are related to training

Answer 11

• Spend in total and per employee on training
• Measures of training effectiveness

Question 12

State HR Objectives that are related to diversity

Answer 12

• Diversity in senior management positions (gender, experience, ethnicity etc)
• Diversity in external recruitment (gender, ethnicity etc)

Question 13

State HR Objectives that are related to alignment of values

Answer 13

• Recruitment & induction training; extent focused on core values
• Employee awareness of core values

Question 14

State HR Objectives that are related to the number, skills and location of employees

Answer 14

• Labour turnover
• Staff retention
• Recruitment targets
• Training budgets
• Extent of skills gaps in the workforce