Human Resources Metrics that are Useful to a Business

Question 1

Labour Productivity

Answer 1

Labour productivity is a measure of output per employee over a specified period of time

Businesses aim to increase the level of labour productivity to improve competitiveness

Question 2

Labour Turnover

Answer 2

Labour turnover measures the proportion of employees leaving a business during a specific time period

High levels of labour turnover can indicate poor motivation, ineffective recruitment procedures or attractive alternative opportunities for workers

Question 3

Labour retention

Answer 3

Labour retention measures the proportion of employees remaining with a business during a specific time period

High levels of labour retention can indicate effective motivation and recruitment procedures or few alternative employment opportunities for workers

Question 4

absenteeism

Answer 4

The absenteeism rate is a measure of the proportion of staff absent from work during a specific period of time (e.g. a day, week or month)

High levels of absenteeism can cause problems
Sick pay and the hiring of temporary staff to cover for those absent increases costs
Output is likely to be temporarily reduced
Other staff may become demotivated if they have to cover for absent workers