6.2a Analysing HR performance Flashcards Preview

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Flashcards in 6.2a Analysing HR performance Deck (13):
1

Labour turnover definition

The percentage of the workforce that leave a business within a given period (usually a year)

2

Labour turnover formula

Labour turnover = (number of employees leaving during period ÷ average number employed during period) x 100

3

Advantages of staff leaving

- New people with fresh ideas
- Hire specialists rather than training existing employees

4

Disadvantages of staff leaving

- Increases recruitment costs
- Reflects poor morale in workforce
- Increases training costs

5

Retention rate formula

(Number of employees with X years service ÷ overall workforce numbers) x 100

6

Retention rate definition

Proportion of employees with a specified length of service

7

Methods of improving retention

- Recruit correct staff
- Train staff
- Exit interviews

8

Labour productivity definition

Amount of output obtained from each employee

9

Labour productivity formula

Labour productivity = output per period ÷ number of employees at work

10

Two methods of reducing labour costs per unit

Increasing output for the same level of labour costs
Reducing labour costs for the same level of output

11

Ways to achieve lower labour costs per unit

- Recruitment of skilled workers
- Training of existing staff
- Outsourcing

12

What does employee costs as a % turnover show?

How much of the money the business makes from sales that is taken by employee costs

13

Employee costs as a % turnover formula

Employee costs as a % turnover = (employee costs ÷ revenue) x 100

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