workforce performance

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

  To examine the effectiveness of human resource management (HRM) policies
• What are some elements of workforce performance that cannot be directly measured?

  Motivation and commitment
• What are the popular methods for measuring the effectiveness of HRM policies and workforce performance?

  • Absenteeism rates
  • Labour turnover
  • Labour productivity
• What does absenteeism refer to in the context of workforce performance?

  Absence from the workforce for various reasons
• If an employee misses 13 working days out of 253 working days in a year, what is their absenteeism rate?

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

  By taking the total number of staff absence days over a year divided by the total number of working days that should have been worked, multiplied by 100
• If a business has 300 workers and 253 working days in a year, what is the total number of working days?

  75,900
• What does a high level of absenteeism indicate for a business?

  It may indicate dissatisfaction and demotivation in the workplace
• How many days are lost each year in the UK due to workplace absenteeism?

  Approximately 40 million days
• What percentage of employees cite colds and flu as the reason for being away from work?

  93%
• What does research indicate about the reasons for workplace absence?

  At least half of all workplace absence has nothing to do with health
• What are some reasons employees might stay away from work aside from health issues?

  Bullying, responsibility for children or elderly relatives, job demotivation, low pay, and hangovers
• What is labour turnover?

  A measure of the rate at which employees are leaving an organization
• Which types of businesses typically have a high level of staff turnover?

  Direct sales organizations and fast-food outlets
• If a business has 11,000 staff and 550 leave in one year, what is the rate of staff turnover?

  5%
• What is a refinement of measuring staff turnover?

  Examining turnover among core workers critical to the company's success
• What is the staff turnover rate in the call center industry?

  25%
• What is the absenteeism rate in the call center industry?

  35%
• What does labour productivity measure?

  The efficiency with which a business turns production inputs into output
• Why is labour productivity an important measure for businesses?

  Because it impacts labour costs per unit produced
• How is labour productivity commonly measured?

  Output per worker
• What should happen if HRM policies are effective?

  Productivity should improve
• If a business measures the total output per period of time and divides it by the average number of employees per period of time, what are they calculating?

  Labour productivity