analysing human resource performance

Question 1

what’s labour turnover?

Answer 1

measures how good a firm is at keeping its workers, measured in terms of the percentage of workers who leave within a year

Question 2

what are retention rates?

Answer 2

this measures the extent to which a business holds on to its employees

Question 3

define employee costs as a percentage of turnover

Answer 3

this measures the percentage of sales turnover (revenue) that is needed to cover employee/labour costs

Question 4

what are labour cost per unit?

Answer 4

this measures the labour cost per unit of output

Question 5

define labour productivity

Answer 5

measures the amount of goods produced in relation to the number of employees, shown in terms of output per worker

Question 6

what are possible causes of good labour productivity

Answer 6

• investment in education and training
• workforce or morale and motivation
• health and age structure of workforce
• investment in planned, preventative maintenance
• quality of management

Question 7

what are the costs and effects of labour productivity - the higher the productivity, the lower the cost can either:

Answer 7

• reduce price- increase competitiveness, sales, share

- enjoy higher profits