Workforce Performace

Question 1

What is workforce performance

Answer 1

It is important for a business to measure the effectiveness of its workforce.

There are a number of ways to measure the effectiveness of workforce performance

The most popular are

Absenteeism rates

Labour turnover

Labour productivity

Question 2

Absenteeism Rates

Answer 2

Absence from the workforce can occur for a variety of reasons. This needs to be carefully monitored.

To measure this you take the total number of workers and multiply by the number of working days in a year. This fives the total number of working days

Eg. 300 workers x 253 working days = 75,900

Divide the number of working days by the total of sick days

980 sick days / 75,900 x 100 = 1.29%

Question 3

Labour turnover

Answer 3

This is a measure of the rate at which employees are leaving an organisation

Formula

Number of staff leaving
———————————. X 100 =
Average number of staff employed

550
———- X 100 = 5%
11,000

Question 4

Labour productivity

Answer 4

Productivity is a measurement of the efficiency with which a business turn production inputs into output

Formula

Total output per period of time
——————————————-
Average number of employees per period of time