HR performane Flashcards
What are the key measures of HR performance
Labour turnover- amount of staff that leave
Labour retention-amount of staff that stay
Labour productivity-output per employee
Absenteeism- amount of staff absent from work
Labour productivity
Labour cost are usually a significant part of total costs
Businesses efficiency and profitability are linked to Labour productivity
In order to remain competitive a business need to keep its costs down
The higher the output per worker the more efficient the business is and the lower the costs are
Labour productivity formula
Output per period / number of employees at work
Ideally high
Labour retention formula
Number of staff staying/ average number of staff in post x100
Ideally high
Labour turnover formula
Number of employees leaving during a period/average number employed during a period x100
Ideally low
Problems with high staff turnover
Higher costs such as recruitment and training costs
Increased pressure on remaining staff
Disruption to production and productivity
Harder to maintain required standard of quality and customer service
Ways to improve labour turnover
Effective recruitment and training
Provide competitive pay and other incentives
Job enrichment
Reward staff loyalty
Absenteeism formula
Number of staff days off/ total number of days x100
Ideally low
How to reduce absenteeism
Understand the causes
Set targets and monitor trends
Have a clear sickness and absence policy
Provide rewards for good attendance
Consider the wider issues of employees motivation
How can you improve the stats
Giving authority to make decisions to front line staff
Encourage employees feedback
Show more trust in employees
Employees need to feel that their actions count
Consider the wider issues of employees motivation
Provide financial rewards
