Business - Employees - Formulas

Labour turnover: the proportion of employees leaving a business over a period of time - usually a year. It is seen as a percentage.

Formula -

Number leaving a business over a given period / average number employed over a given period

x 100

- Ineffective leadership and management techniques

- poor communications

- low wadges/salary

- boring and unchallenging

- poor work conditions

- better jobs available

- high recruitment and selection costs

- high induction and training costs

- loss of essential skills

- low morale

Absenteeism - The proportion of employees not at work on a given day.

Formula -

Total no. of days lost due to absence during the year / (Total no. of days that could have been worked x no. of employees)

x 100

- High levels often indicate demotivation, low morale, low commitment, poor management and communication. Often it is genuine illness.

- Top causes of absenteeism include stress (41.5%)

- Problems include - cost of covering the worker, reduced output, missed deadlines, poor reputation.

Rate of absenteeism lost for h&s reasons

Formlua -

No. of working days lost for health and sefety reasons / (the no. of days possibly could have worked x no. of employees )

x 100