6.2 Analysing HR Performance Flashcards
What is labour turnover?
The % of staff who leave during a period.
How to calculate labour turnover.
Number of employees leavings/average number employed x100.
What is labour productivity?
Output per employee.
What is employee retention?
The ability of a business to convince employees to remain with the business.
Why will employee retention never be 100%?
Natural wastage e.g. retirement, maternity, death.
What are some problems with high labour turnover?
Higher costs - recruitment and training.
Harder to remain required standards of quality and customer service.
Disruption to productivity.
What factors may affect staff turnover?
Type of business e.g. seasonal/temporary contracts.
Working conditions.
Competitors actions.
Opportunities for promotion.
Pay and other rewards.
How to calculate labour costs per unit.
Labour costs/number of units x100.
How to calculate employee costs as a % of turnover.
Employee cost/turnover x100.
How to calculate employee retention rates.
Employees remained for whole period/employees at start of period x100.
How to calculate labour productivity.
Output/no of employees.
Ways to improve labour productivity.
Set targets.
Invest in training.
Invest in capital equipment (e.g. automation and computerisation).
What are some issues a high labour productivity?
Possible trade off with quality.
Employees may demand higher pay for increased productivity - wouldn’t result in improved labour costs.
Define absenteeism.
An employees intentional absence from work.
Why is high absenteeism bad?
Decreased productivity.
Increased costs.
