Interpreting Human Resource Data Flashcards
(31 cards)
What happens to HR data before making decisions?
It is analysed
What does HR use this data for?
To make plans for the human resource flow in the future.
What are 3 figures that HR consider when making decisions?
Labour productivity
Labour turnover
Labour retention
What decisions do HR make that they need to look at the trends of labour productivity before?
Training, recruitment and pay
How can HR have a positive impact of labour productivity?
By employing a diverse workforce and making employees feel engaged and motivated
If Labour productivity is increasing, what may HR choose to do?
Reward employees which will keep levels of motivation up and workers will know their hard work is valued.
If Labour productivity is decreasing, what may HR choose to do?
May choose to retrain staff and replace employees with more skilled labour
Why will HR compare their labour productivity with competitors?
To see if they need to improve or ahead of the game.
What 2 performance statistics can affect HR decisions?
Labour cost per unit
Employee costs as a % of turnover
How do you calculate labour cost per unit?
Labour costs divided by units of output
How do you calculate employee costs as a % of turnover?
Employee costs divided by sales turnover X100
What does labour cost per unit show?
How much money the business has to pay employees to make one unit of output
How can Labour costs per unit be reduced? 2 ways
Reducing labour costs
Increasing labour productivity
What does employee costs as a % of turnover show?
What percentage of the money made is spent on employees
How can employee costs be decreased?
Reducing wages and benefits
Why can decreasing employees wages and benefits be bad for the business?
Could lead to a demotivated workforce
Why must HR think about the ethics of the business when making decisions?
Make sure staff feel valued and treated well
What does labour turnover measure?
The proportion of staff who leave each year
How do you calculate labour turnover?
Number of staff leaving divided by average of staff employed X100
How do you calculate average of staff employed?
Staff at the beginning of the time period + Staff at the end of the time period divided by 2
What does it mean if there is a high labour turnover?
High proportion of workers leaving the firm each year
What are 2 external causes of high labour turnover?
Changes in regional unemployment levels and growth of other firms using staff with similar skills.
What are 3 internal causes of high labour turnover?
Poor motivation
Low wages
Lack of opportunities for promotion
What does a poor recruitment process do?
Increase labour turnover
