Human resources

Question 1

What is labour productivity equation?

Answer 1

total output per time period/ average number of employees per time period

Question 2

What should higher labour productivity do?

Answer 2

Drives down costs, allowing a business to lower their costs to gain higher sales or keep its prices where they are and increase their profit margins

Question 3

What’s labour turnover?

Answer 3

Proportion of staff leaving a business over a period of time

number of staff levaing over time period/ average number of staff in post during the period x100

Question 4

Reasons for high labour turnover:

Answer 4

• low pay
  -little promotion opportunities
  -poor working conditions

Question 5

Cons of having a high labour turnover:

Answer 5

-recruiting new staff is costly
-requires training- costly
-it takes time for staff to become familiar with their role

Question 6

Pros of having high labour turnover:

Answer 6

-new staff bring new ideas
-can be profitable to have constant turnover of staff rather then raise wages

Question 7

What is labour retention?

Answer 7

Looks at rate at which employees stay at business

number of staff staying/ average number of staff in post x100

Question 8

What are the problems of absences?

Answer 8

• business have to pay sick pay
  -increased costs when brining in cover
  -output may suffer
  -demotivates staff who are left to cope

Question 9

What are strategies to increase productivity, retention and reduce absenteeism?

Answer 9

• finical rewards (commission, bonus)
• share ownership (company shares)
  -empowerment