measures of HR performance

• How can you measure labour performance?

  Labour turnover

  Unit costs

  Absenteeism

  Employee costs
• What is labour turnover and staff retention?


  Percentage of staff who leave during a period
• What is labour productivity?


  Output per employee
• What is absenteeism?


  The number of employees who are absent from work for a period of time
• Why employees may leave a business?

  • retirement
  • maternity
  • death
  • long term illness
• Labour turnover needs to be managed if the business is to succeed

  Employee retention is the ability of a business to convince its employees to remain within the business
• Whats the formula for labour turnover?


  $$number of employees leaving during the time period/average number employed during the period X 100
• What are some ways to reduce staff turnover?

  • job enrichment
  • benefits
  • discounts
  • access to other services
  • pension contribution
  • effective recruitment and training
  • training and development opportunities
  • internal promotions over external
• Why does labour productivity matter?

  Labour costs are usually a significant part of total costs, business efficient and profitability are closely linked to productive use of labour, in order to remain competitive a business needs to keep its unit costs down
• When labour productivity increases average unit costs go down and vise versa