hr performance Flashcards
(13 cards)
key measures of hr performance
- labour turnover and staff retention = percentage of staff who leave during a period
labour productivity = output per employee
absenteeism = percentage of staff who are absent from work
labour turnover formula
number of employees leaving during a period / average number of employees during a period x 100
labour productivity formula
output per period / number of employees at work
absenteeism formula 1
number of staff absent during period / number of staff employed during period x 100
labour costs per unit formula
total labour costs per period/ output per period
employee retention
ability for business to convince employees to stay with business
what is labour turnover
percentage of work force that leads business within a period of time (usually a year)
problems with high staff turnover
higher costs, increased recruitment and training costs
- harder to maintain required standards of quality and customer services
factors that effect staff turnover
- pay
- working conditions
- opportunity for promotion
ways to improve staff turnover
- give competitive pay
- reward staff loyalty e.g extra holiday
why does labour productivity matters
- usually a big part of total costs
- in order to remain competitive, need to keep unit costs down
ways to improve labour productivity
- measure performance set targets
improve working conditions
invest in employee training
problems when trying to increase labour provducity
-trade off with quality , as productivity increases , quality decreases
- may demand higher pay for better productivity
