3.6.2 Flashcards
1
Q
what is labour turnover?
A
the percentage of the workforce that leave a business within a given period (usually a year)
2
Q
labour turnover formula
A
number of employees leaving during period/ average number employed during period x 100
3
Q
what are some problems with high staff turnover?
A
- higher costs
- increased pressure on training staff
- disruption to production/ productivity
- harder to maintain required standards of quality and customer service
4
Q
what are ways to improve staff turnover?
A
- effective recruitment and training
- provide competitive pay and other incentives
- job enrichment
- reward staff loyalty
5
Q
labour productivity formula
A
output per period (units) / number of employees at work
6
Q
what are ways to improve labour productivity?
A
- measure performance and set targets
- invest in capital equipment (automation and computerisation)
- invest in employee training
- improve working conditions
7
Q
employee costs as a percentage of turnover formula
A
employee costs/ turnover x 100
8
Q
labour costs per unit formula
A
employee costs/ units of output
