Interpreting Human Resource Data

Question 1

What happens to HR data before making decisions?

Answer 1

It is analysed

Question 2

What does HR use this data for?

Answer 2

To make plans for the human resource flow in the future.

Question 3

What are 3 figures that HR consider when making decisions?

Answer 3

Labour productivity
Labour turnover
Labour retention

Question 4

What decisions do HR make that they need to look at the trends of labour productivity before?

Answer 4

Training, recruitment and pay

Question 5

How can HR have a positive impact of labour productivity?

Answer 5

By employing a diverse workforce and making employees feel engaged and motivated

Question 6

If Labour productivity is increasing, what may HR choose to do?

Answer 6

Reward employees which will keep levels of motivation up and workers will know their hard work is valued.

Question 7

If Labour productivity is decreasing, what may HR choose to do?

Answer 7

May choose to retrain staff and replace employees with more skilled labour

Question 8

Why will HR compare their labour productivity with competitors?

Answer 8

To see if they need to improve or ahead of the game.

Question 9

What 2 performance statistics can affect HR decisions?

Answer 9

Labour cost per unit
Employee costs as a % of turnover

Question 10

How do you calculate labour cost per unit?

Answer 10

Labour costs divided by units of output

Question 11

How do you calculate employee costs as a % of turnover?

Answer 11

Employee costs divided by sales turnover X100

Question 12

What does labour cost per unit show?

Answer 12

How much money the business has to pay employees to make one unit of output

Question 13

How can Labour costs per unit be reduced? 2 ways

Answer 13

Reducing labour costs
Increasing labour productivity

Question 14

What does employee costs as a % of turnover show?

Answer 14

What percentage of the money made is spent on employees

Question 15

How can employee costs be decreased?

Answer 15

Reducing wages and benefits

Question 16

Why can decreasing employees wages and benefits be bad for the business?

Answer 16

Could lead to a demotivated workforce

Question 17

Why must HR think about the ethics of the business when making decisions?

Answer 17

Make sure staff feel valued and treated well

Question 18

What does labour turnover measure?

Answer 18

The proportion of staff who leave each year

Question 19

How do you calculate labour turnover?

Answer 19

Number of staff leaving divided by average of staff employed X100

Question 20

How do you calculate average of staff employed?

Answer 20

Staff at the beginning of the time period + Staff at the end of the time period divided by 2

Question 21

What does it mean if there is a high labour turnover?

Answer 21

High proportion of workers leaving the firm each year

Question 22

What are 2 external causes of high labour turnover?

Answer 22

Changes in regional unemployment levels and growth of other firms using staff with similar skills.

Question 23

What are 3 internal causes of high labour turnover?

Answer 23

Poor motivation
Low wages
Lack of opportunities for promotion

Question 24

What does a poor recruitment process do?

Answer 24

Increase labour turnover

Question 25

What 3 factors can decrease labour turnover?

Answer 25

Job enrichment
Increased delegation
Higher wages

Question 26

What are 3 benefits of high staff turnover?

Answer 26

Constant stream of new ideas through new staff
Saves money by firm recruiting staff already trained
Enthusiasm of new staff influences other workers

Question 27

What are 3 disadvantages of high staff turnover?

Answer 27

Lack of loyalty
Firm loses trained staff
Recruitment costs are high

Question 28

What does labour retention measure?

Answer 28

A company’s ability to keep its employees

Question 29

How do you calculate labour retention?

Answer 29

Number of staff employed at end of period - number of leavers divided by number of staff employed at start of period X100

Question 30

What does a low retention rate mean?

Answer 30

That the company only keeps a small proportion of its employees

Question 31

How can HR deal with a low retention rate?

Answer 31

By improving the induction process