3.6.2- Analysing human resource performance Flashcards
3.6 Human resource management
Why is HR data analysed before making decisions?
To compare figures to competitors who utilise their HR better and improve certain areas.
What is labour productivity?
Its the output per worker or per hour worked.
What happens if labour productivity increases?
HR can reward employees w/ bonuses and increased salary, which motivates workers
What happens if labour productivity decreases?
HR can retain staff, offer redundancies and replace employees
What is labour costs?
The amount of money the business has to pay employees to make oneunit of output
How can companies reduce labour cost per unit?
- By reducing labour costs
- Increase labout productivity
What is employee costs as a percentage of turnover?
It shows what percentage of money made is spent on employees
How can emplyee costs be reduced?
By reducing wages and benfits but this can demotivate the workforce.
What is labour turnover?
The rate at which employees leave a company.
What are the external causes of high labour turnover?
- changes in regional unemployemnt levels
- Growth in other local firms using staff with similar skills
What are the internal causes of high labour turnover?
- Poor motivation
- Low wages
- Lack of opportunities for promotion
What are the benefits of high staff turnover?
- Constant stream of new ideas from new staff
- Firms can recruit those trained by competitors: saves money
- Enthusiams of new staff influencces other workers
What are the issues of high staff turnover?
- Lack of loyal and experienced staff who know the business
- Firm can lose trained staff to competitors
- Training costs money and productivity drops while staff get trained
- Recruitments costs are high
What is labour retention?
The goal of keeping talented workers and reducing turnover.
How can HR deal with low retention rate?
By improving induction process. Helping new employees into their role and the environment.
