Interpreting human recourse data

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What are the 4 figures HR consider when making decision?
Labour productivity, labour turnover, absenteeism, labour retension.
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What do HR use this data for?
To make plans for the human resource flow.
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Why do they compare these figures to their competitors?
To see who is utilising their human resources better and if they need to improve in certain areas
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What is the equation for labour productivity?
Labour productivity = output per person/ number of employees.
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How can HR have a positive impact on labour productivity?
By employing a diverse workforce and making sure that all employees feel engaged and motivated. They can also make sure people have the right roles.
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What can HR do if labour productivity is increasing?
Reward with bonuses/ increased salaries, this will keep motivation high and workers will feel like their hard work is being recognised.
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What can HR do if labour productivity is decreasing?
Retrain staff, offer larger incentives, offer redundancies, replace employees with more skilled ones.
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Equation for labour unit cost?
labour unit cost = labour costs/ units of output.
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Equation for employee costs as a % of turnover?
Employee cost as a % of turnover = employee cost/ sales turnover x 100.
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What does labour unit cost show?
How much money the business needs to pay employees to make one unit of output.
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How can labour cost per unit be decreased?
Increasing productivity, reducing labour costs.
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What does employee costs as a % of turnover show?
What percentage of the money made is spent on employees.
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How can employee costs as a % of turnover be decreased?
Reducing wages and benefits - however this will demotivate staff, making the problem worse.
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Equation for labour turnover?
Labour turnover = number of staff leaving/ average number of staff employed x 100
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What does labour turnover show?
The proportion of staff who leave each year.
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What are the external causes of a high labour turnover?
Changes in unemployment levels, the growth of other firms using staff with similar skills.
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What are the internal causes of high labour turnover?
Poor motivation, low wages (staff may leave for better pay), lack of opportunities for promotion, poor recruitment process selecting wrong candidates.
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What are the ways to reduce high labour turnover?
Delegation, job enrichment, higher wages, better training.
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What are the benefits of high labour turnover?
Flow of new ideas into the business, allows firms to recruit staff already trained by competitors, if sales fall the firm can reduce workforce through natural wastage and not costly redundancy, enthusiastic new staff can motivate other workers.
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What are the disadvantages of high labour turnover?
Lack of loyal/ experienced staff who know the business, firms loss staff who were trained (often to other competitors), new staff must be trained (costs money and productivity drops whilst this is happening), recruitment costs are high.
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Equation for labour retention?
Labour retention = Number of staff employed at end of period - number of staff/ number of staff employed at end of period x 100.
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What does labour retention measure?
The companies ability to keep its employees.
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How is labour retention related to labour turnover?
The higher the turnover, the lower the retention rate.
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What does a low labour retention mean?
A business can only keep a small proportion of its employees.
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How can HR improve a low labour retention?
Improving the induction process, highlight oppurtunities available to all employees, reinforce values and goals (so employees feel included and valued.
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Other cards in this set

Card 2

Front

What do HR use this data for?

Back

To make plans for the human resource flow.

Card 3

Front

Why do they compare these figures to their competitors?

Back

Preview of the front of card 3

Card 4

Front

What is the equation for labour productivity?

Back

Preview of the front of card 4

Card 5

Front

How can HR have a positive impact on labour productivity?

Back

Preview of the front of card 5
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