U6: Human Resource Data Analysis Flashcards
(21 cards)
What is Human Resource Data?
Human resource data is quantifiable information that can be used to measure workforce performance
What will Human Resource Data help with?
This will help inform decision making e.g. is corrective action needed, should bonuses be paid, are staff motivated?
What does Human Resource Data include?
Human resource data includes:
• Labour turnover and retention rates
• Labour productivity
• Employee costs as a percentage of turnover
•Labour cost per unit
What is Labour Turnover?
Labour turnover is the rate of change in a firm’s labour force
What is the Labour Turnover calculation?
(Number of staff leaving/Average number of staff) X 100
What time period is Labour Turnover usually shown over?
Labour turnover is normally shown over a period of 1 year
What are Retention Rates?
Retention rates are a measure of a firm’s ability to keep its workforce within the business normally for more than one year
What is the Retention Rates calculation?
(number of employees serving for more than 1 year/ average number of staff) X 100
What may Low Retention Rates present?
Low retention rates may present a threat to a business:
- High recruitment, selection and training costs
- Risk of loss of important information (secrets)
- Loss of talent
What is Labour Productivity?
Labour productivity is a measure of workforce performance that looks at output per worker
What is the calculation for Labour Productivity?
Total output/ Number of workers
What are Employee Costs?
Employee costs are all the costs associated with the workforce
What time period is Labour Productivity usually shown over?
Labour productivity is normally shown over a period of 1 year
What is one measure of the work force?
One measure of workforce performance is to calculate these costs as a percentage of the revenue coming in from sales
How will the percentage be influenced?
The percentage will be influenced by a number of factors including:
• Capital or labour intensive
• Tertiary, secondary or primary sector
• Skills and qualifications of the average employee
What is the calculation of Employee Costs as a Percentage of Turnover?
(Employee costs/ Revenue) X 100
What is Labour Costs Per Unit?
A measure of the average employee cost per unit of output
What are the labour costs per unit affected by?
Labour costs per unit are affected by:
• Labour productivity
• Average employee costs
What is the calculation for Labour Costs Per Unit?
Total labour costs/ Total output
What does humana resource planning identify?
Human resource planning to identify current staffing levels and needs and future staffing levels and needs in order to be able to take action to ensure future needs are met
What are the needs for human resource planning?
• Assess employee performance
- Implement reward and sanction policies
- Compare different branches, functions or product lines
• Negotiate with trade unions
• Inform decisions re redundancies if necessary
