1. Chapter 20: Measuring the Effectiveness of the workforce

2. Labour Productivity output per period .
Labour Productivity = num. employees per period
How to increase labour productivity:
Recruitment and selection of suitably skilled and trained employees
Provision of training to enhance skills and attitudes of existin employees
Appropriate remuneration and non-financial benefits that improve motivation and effort
Improved working practices
Improved technology and capital equipment

3. Labour Turnover num. leaving a business over a period x100
Labour Turnover = average num. employed over a period
Causes of high labour turnover:
Ineffective leadership and management techniques
Poor communications
Wages and salaries that are lower than those being paid by firms offering comparable jobs in the area
Poor selection procedures that tend to appoint the wrong people to the wrong jobs
Boring / Unchallenging jobs that lack career and developmental opportunities
Poor working conditions
Low morale and motivation as a result of the above issues
EXTERNAL Factors – other jobs are more attractive because of better pay, offer better training and working conditions, are more interesting and challenging, are closer to home or offer easier transport links

4. Labour Turnover Problems of high labour turnover:
High recruitment and selection costs
High induction and training costs
A need to redesign jobs
Reduced productivity
Low morale among existing workers.

5. Labour Turnover How to improve labour turnover:
Monitoring and benchmarking
Exit interviews
Recruitment and selection
Induction and training
Reducing turnover of long-term workers

6. Absenteeism num. of staff absent on 1 day x 100
Rate of Absenteeism = total num. of staff
total num. of days lost due to
Annual Rate of = absence during the year X 100
Absenteeism total num. of days that could be
worked x no. of employees

7. Absenteeism Strategies to reduce absenteeism:
Introducing more flexible working practices
Ensuring that jobs are interesting and challenging
Improving working conditions
Improving relations between employers and employees
Introducing attendance bonuses