A-level Business Studies Lesson 36 (3.6.2)

Question 1

Labour turnover

Answer 1

The proportion of employees leaving a business over a period
of time, usually a year.

Question 2

Labour turnover formula

Answer 2

Number of employees leaving over a given period x 100 /
Average number employed over a given period

Question 3

Retention rate

Answer 3

The proportion of employees with a specified length of service (normally one or more years) as a proportion of the total workforce.

Question 4

Labour productivity

Answer 4

A measure of the output per worker in a given time period.

Question 5

Labour productivity formula

Answer 5

Output per period x 100 / Number of employees per period

Question 6

Labour costs per unit

Answer 6

A measure of the average labour costs involved in producing one unit of output in a given period of time.

Question 7

Labour costs per unit
formula

Answer 7

Total labour costs x 100 /
Total units of output

Question 8

Employee costs as a
percentage of turnover

Answer 8

The percentage of sales turnover needed to cover employee or labour costs.

Question 9

Employee costs as a %age
of turnover formula

Answer 9

Employee costs x 100 / Sales turnover