3.5.3 Human Resources

• Labour Productivity : how efficient output is dependant on the number of employees

  Labour productivity = output per period / number of employees
• Labour Turnover : proportion of staff that leave the business in a given period of time.

  labour turnover = number of staff leaving / number of staff employed x100
• Labour Retention : a business' ability to keep employees

  labour retention = (number of staff employed at the start - number of leavers) / number of staff employed at the start x100
• Absenteeism : proportion of days missed by employees

  absenteeism = number of days staff absent / (number of staff employed x time period) x100
• Impacts of Labour Productivity:

  • increasing labour productivity:
  • may reward employees with bonus / pay rises
  • keep motivation high as hard work is being valued
  • decreasing labour productivity: