Workforce performance Flashcards
What is workforce performance ?
The methods used by a business to assess their employees and their work processes to increase productivity and profitability
What are the three measures of workforce performance ?
- Labour productivity
- Labour turnover
- Absenteeism
What is labour productivity ?
The output per input of a person/machine per hour
What does labour productivity measure ?
The measure of efficiency of a person/machine in converting inputs into useful outputs
What is the calculation for labour productivity ?
output per time period / number of employees at work
Why is labour productivity useful ?
Business efficiency and productivity are linked to productive use of labour, so can remain competitive to keep costs low
What is labour turnover ?
The proportion of a firm’s workforce that leaves during the course of a year
What is the calculation for labour turnover ?
number of staff leaving / average number of staff x100
How can labour turnover vary ?
- Depending on industry
- Geographically
Why can labour turnover happen ?
- Retirement
- Illness
- Business closing locations
What is absenteeism ?
The proportion of employees not at work on a given day
The lower absences … ?
The more productive and efficient the business becomes
What is the calculation for absenteeism ?
Number of staff absent per time period / total number of staff days worked per time period x100
What is the importance and impact of workforce performance on a business and their stakeholders ?
- Internal factors may affect labour turnover = low levels of worker commitment
- External factors allow local workers to commute to other jobs
- High labour turnover = cost of recruiting and training, less productivity, innovation
