workforce performance

• Why is it important for a business to measure workforce effectiveness?

  To examine HRM policy effectiveness
• What are some elements of workforce performance that cannot be directly measured?

  Motivation and commitment
• How can a business measure the effectiveness of HRM policies?

  By monitoring absenteeism rates
• What is absenteeism?

  Absence from the workforce
• What is the absenteeism rate if an employee misses 13 days out of 253?

  Over 5%
• How do you calculate a business's absenteeism rate?

  Divide total sick days by total working days
• What does a high level of absenteeism indicate?

  Dissatisfaction and demotivation in the workplace
• What impact does absenteeism have on a business?

  Increases costs and affects performance
• How many days are lost annually in the UK due to absenteeism?

  Approximately 40 million days
• What percentage of employees cite colds and flu as reasons for absence?

  93%
• What percentage of workplace absence is unrelated to health?

  At least half
• What are some non-health reasons for workplace absence?

  Bullying, low pay, personal issues
• What does labour turnover measure?

  The rate employees leave an organization
• How is the percentage staff turnover calculated?

  Divide leavers by average employees
• If a business has 11,000 staff and 550 leave, what is the turnover rate?

  5%
• What is a typical staff turnover rate for banks?

  Around 5% per annum
• What is the significance of measuring turnover among core workers?

  Focuses on critical staff for success
• What is the absenteeism rate in the call centre industry?

  35%
• What is labour productivity?

  Efficiency of turning inputs into outputs
• What is the most common measure of productivity?

  Output per worker
• Why is higher productivity important for a business?

  Leads to lower labour costs and competitiveness
• How is productivity measured in the automobile industry?

  Output of cars per worker per year
• What are the differences between labour turnover and labour productivity?

  • Labour turnover measures employee departures
  • Labour productivity measures output per worker
  • Different implications for workforce management
• How can a business reduce a high absenteeism rate?

  • Improve workplace conditions
  • Enhance employee engagement
  • Offer flexible working arrangements
• Why should a business be concerned about high absenteeism and turnover rates?

  • Indicates employee dissatisfaction
  • Increases operational costs
  • Affects overall business performance