Workforce Performance (12) Flashcards
What is workforce performance
It measures the effectiveness of the workforce
What are the 3 main measures of staff performance
Labour productivity – The output per employee and shows have productive your workers are.
Abseentism – Refers to the number of days staff are absent from work in percentage
Staff turnover – The percentage of the workforce (employees) that leave the business in a given period of time.
Why is labour productivity important
labour costs are usually a large proportion of total costs
Business efficiency and profitability is linked to labour productivity
Good labour productivity keeps businesses competitive by keeping unit cost low.
What are the factors influencing labour productivity
The skills, ability and motivation of the workforce and reliability of suppliers
How to calculate labour productivity
Output per period(units)/number of employees at work
How do you improve labour productivity
Measure performance and set targets
Streamline production processes
Invest in employee training
Invest in capital equipment
How to calculate Abseentism
Number of staff absent during period/Number of employed x100
Why is Abseentism a cost to the business
Reduced productivity levels.
High administration costs.
Increased labour costs if you hire replacement temporary workers.
How do you resolve Abseentism
It can be tackled by understanding the causes,
have clear sickness and absence policy’s
provide awards for good attendance.
What is meant by staff turnover
The percentage of the workforce (employees) that leave the business in a given period of time.
Why do businesses lose staff
Retirement, Death, maternity, long term illness, changes in location.
What is employee retention
Employee retention is the ability of a business to convince its employees to remain with the business.
How do you calculate staff turnover
Number of employees leaving during a period/Average number employed during period x100
What are the disadvantages to staff turnover
Higher costs – increased recruitment & training costs
Increased pressure on remaining staff
Disruption to production/ productivity
What are the factors of staff turnover
Type of business – seasonal turnover
Pay other rewards
Working conditions
Opportunities for promotion
Competitor actions
Economic downturns
