6 - Human Resource Data

Question 1

What Is HR Data?
(2 Points)

Answer 1

~ Quantifiable information that can be used to measure workforce performance.

~ Helps inform decision making.

Question 2

What Does HR Data Include?
(4 Points)

Answer 2

~ Labour turnover.

~ Labour productivity.

~ Employee costs as a % of turnover.

~ Labour cost per unit.

Question 3

What Is Labour Turnover?

Answer 3

The rate at which employees leave a business over a time period.

Question 4

What Is The Formula For Labour Turnover?

Answer 4

Number Of Staff Leaving / Number Of Staff Employed By The Business x 100

Question 5

What Does A Business Ideally Want As A Result Of Labour Turnover?

Answer 5

Lower number.

Question 6

What Are The Problems Of A High Level Of Labour Turnover?
(4 Points)

Answer 6

~ Increased recruitment and selection costs, to replace lost workers.

~ Lose experience / knowledge.

~ Demotivating for other staff.

~ Impacts on labour productivity and efficiency.

Question 7

What Are The Causes Of High Labour Turnover?
(5 Points)

Answer 7

~ Poor working conditions.

~ Lower pay vs industry average and key rivals.

~ High capacity utilisation, leading to burnout.

~ Poor training, feeling of no career development.

~ Poor management.

Question 8

What Are Solutions To Reducing High Labour Turnover?
(5 Points)

Answer 8

~ Improve working conditions.

~ Improve pay vs industry average.

~ Reduce capacity utilisation to a more sustainable number, could lead to efficiency risk.

~ Provide training.

~ Exit interviews to get to root cause of the problem.

Question 9

What Could Be An Evaluation Point For High Labour Turnover?
(4 Points)

Answer 9

~ Some businesses are less fussed about higher labour turnover.

~ They might always have a large pool of labour available.

~ Limited recruitment costs involved.

~ E.g. Fast food industry.

Question 10

What Is Labour Productivity?

Answer 10

Output per worker.

Question 11

What Is The Formula For Labour Productivity?

Answer 11

Total Output / No. Of Employees

Question 12

How Can You Increase Labour Productivity?
(4 Points)

Answer 12

~ Introduce machinery to support the labour.

~ Train employees to improve skill set.

~ Using motivational theories.

~ Adapt management style.

Question 13

What Is The Importance Of Having A High Labour Productivity?
(5 Points)

Answer 13

~ Increased efficiency.

~ Decreased the labour cost per unit.

~ Decreased prices.

~ Increased competitiveness.

~ Increased profit.

Question 14

What Are The Barriers To Improving Labour Productivity?
(4 Points)

Answer 14

~ Resistance from employees.

~ The cost of training and using machinery.

~ Motivation impacts.

~ Quality impacts.

Question 15

What Is The Formula For Employee Costs As A % Of Turnover?

Answer 15

Employee Costs / Turnover (Revenue) x 100

Question 16

What Are Types Of Employee Costs?
(3 Points)

Answer 16

~ Salaries / Wages.

~ Training.

~ Recruitment and selection.

Question 17

What Does A Business Ideally Want As A Result Of Employee Costs As A % Of Turnover?
(2 Points)

Answer 17

~ Lower, indicates better efficiency in managing labour costs relative to revenue.

~ But too low might be a concern as it could suggest you are paying low salaries, not providing much training.

Question 18

What Is Labour Cost Per Unit?

Answer 18

Total expenditure on labour divided by the number of units produced.

Question 19

What Is The Formula For Labour Cost Per Unit?

Answer 19

Labour Costs / Units Of Output

Question 20

How Can You Reduce Labour Costs Per Unit?
(4 Points)

Answer 20

~ Outsourcing, but can lead to quality concerns.

~ Automation, but there are high costs involved.

~ Reduce wages / salaries, but can lead to labour turnover risks.

~ Use flexible contracts.