HR Competitiveness

• what is labour productivity?


  measures output per worker per period of time
• labour productivity equation?

  output per time period/number of employees
• what is labour turnover?


  measures the % of workers that leave in a given period of time
• labour turnover equation?

  number of staff leaving/average number of staff x100
• what is labour retention?


  measures a firms ability to keep its workforce normally for more than one year
• labour retention equation?

  number of employees serving for more than one year/ x100

  average number of staff
• what is absenteeism?


  usually measures the % of days lost to absence
• absenteeism equation?


  number of days lost to absence/ total potential working days x100
• why does labour productivity matter?

  more productive workers > fewer workers needed to make goods/provide service > lower the cost per unit > lower prices or higher profit margins
• how to improve labour productivity?

  • training
  • better equipment
  • improved recruitment processes
  • financial and non-financial motivators
• why is labour turnover and labour retention important?

  • higher labour turn over is expensive
  • new staff puts more pressure on remaining staff
  • lots of inexperienced staff may reduce production and quality
  • however, turnover is inevitable and it can bring new ideas
• how to improve labour turnover and labour retention?

  • improve recruitment and selection
  • improve terms and conditions
  • change the organisational structure
  • use of financial and non-financial motivators
• why is absenteeism important?

  • increases costs
  • increases pressure on other staff
  • decreases morale
  • impacts the businesses performance
• how to improve absenteeism?

  • improve health and safety
  • introduce/expand flexible working
  • implement an employee wellness programme
  • increase motivation