AS Business Studies - Measuring the effectiveness of the workforce

Labour productivity is calculated by:

1.  Output per employee =

 Value of output   /                                                                                                       Number of employees

• The higher the figure the better

2. Labour cost per unit of output =

Total Labour cost /                                                                                                     Total value of output

• The lower the figure the better

Labour turnover is calculated by:

Number of leavers per year  /                                                                                      Average number of employees x 100

Absenteeism is calculated by:

Number of people absent on one day /                                                                        Total number of staff                             x 100