Human Resource Performance 2

Question 1

What is the labour turnover equation and when may it be useful?

Answer 1

May be useful when wanting to give a company insights into issues related to happiness / motivation and the impact of this on overall labour costs

Question 2

What can a business interpret from high labour turnover ratio?

Answer 2

• Increased cost in recruitment and training
• High turnover could indicate that employees are not happy with their jobs

Question 3

Why may a business want high retention?

Answer 3

-may be used as a key performance indicator as a business will try to retain the most talented workers within their company. Having their best employees will give them a competitive advantage

Question 4

How might labour cost information be used by a manager?

Answer 4

A manager may look at:

• Number of employees
• skills required
• New roles required

Question 5

How might a manager look at supply of labour information?

Answer 5

A manager may look at:

• review of existing workforce
• forecast of staff leaving in the next year
• changes required to current working practices

Question 6

How might a manager look at human plan information?

Answer 6

A manager may look at the:

• recruitment
• training
• reorganisation