Analysing Hr Performance Flashcards
What does human rescource asses
The current and future capabilities of a businesses workforce and sets out actions necessary to fulfil needs
What data can you calculate from hr
- labour productivity
- unit labour costs
- labour turnover and retention
- employee costs as a percentage of turnover
How to calculate labour productivity
Output per period/ number of employees per period
Why is labour productivity important
-Represents efficiency
-More productivity the less costs
- Remain competitive
Formula for unit labour costs
Total labour costs/ total unit of output
Relationship with unit labour costs and labour productivity
Inverse relationship
as labour productivity increases unit labour costs decrease and vise versa
What does lowering labour costs mean for the business
Can produce same output for lower cost
What does increasing labour productivity mean for the business
Businesses can produce more output for the same labour costs
How do you increase productivity/decrease unit labour costs
- train staff
- recruit right employees
- motivate employees
- improve tech&capital equipment
how to calculate labour turnover
Number of staff leaving during year x 100/ average number of staff
What is labour turnover
Measures proportion of a workforce leaving their employment over a period of time usually a year
factors that lead to increasing staff turnover (leaving the business)
- low wages
- inedequate training
- poor morale
- ineffective recruitment process
What is labour retention
The extent to which a business holds on to its employees
Formula for labour retention
Number of employees employed for one year or more x100/ average number of staff
what does a business with a skilled workforce want
Lowest labour turnover rate
What does an unskilled workforce/seasonal workforce business want
May not be concerned with a high level of labour turnover
What is the formula for employee cost as a % of turnover
Employee costs/ sales revenue x100
What are employee costs in relation to revenue influenced by
- productivity rates of the workforce, leads to increased revenue
- wage rates, higher employee costs
- non wage employment costs, higher employee costs
- management of capacity
Four stages of human rescource planning
1) consider corporate objectives of business
2) take a strategic view of employees and whether they are meeting said objectives
3) make a judgement of what size of workforce/ skills that the business needs
4) decide upon the actions taken to convert existing workforce into desired one
