hr performance Flashcards
what is the calculation for labour turnover?
number of employees leaving per period
———————————————————- x100
number of employees per period
what is the calculation for retention rates?
number of employees with one or more years service
————————————————————————— x100
total number of employees
what is the calculation for labour productivity?
output per period
————————-
number of employees per period
what is the calculation for labour cost per unit?
total labour cost
————————
total units of output
what is the calculation for employee cost as a % of turnover?
total employee cost
—————————- x100
sales turnover
what is labour turnover?
the proportion of employees leaving a business
what are retention rates?
the proportion of employees remaining with the business for more than one year
what is labour productivity?
the measure of the output per employee over a given amount of time
what is labour cost per unit?
the measure the average labour cost to produce one unit
what is employee costs as a % of turnover?
the percentage of revenue that goes to paying employees
what are the internal issues that can come from high labour turnover and low retention rates?
- ineffective leadership
- wages and salary issues
- lack of challenge
- poor communication
- poor selection
- poor working conditions
what are the external issues that can come from high labour turnover and low retention rates?
- improving economy
- competition
impact of high labour turnover and low retention rates
- recruitment costs
- training costs
- job redesign
- reduced productivity
- lower motivation
- management time
solutions for high labour turnover and low retention rates
- monitoring or benchmarking
- exit interviews
- improve selection process
- increase training
what does it mean if the employee costs as a percentage of turnover is too low?
suggests not enough staff to complete the work
- absenteeism - when an employee consistently doesn’t appear for work at their scheduled time
