Explains labour productivity, labour turnover, labour retention, absenteeism, and human resource strategies (financial rewards, employee share ownership, consultation strategies, empowerment strategies)
Theme 3 Topic 15
Human Resources and Competitiveness
Labour Productivity
Labour Productivity – measures the output per worker
Labour Productivity = Total Output (per period of time)
Average Number of Workers (per period of
time)
Why is Labour Productivity Important for Competitiveness?
An important measure of efficiency
Higher labour productivity should result in lower unit costs
- The fixed salary costs of each worker are being spread over more units
Lower unit costs enables the business to charge lower prices than their rivals or they can charge the
same price and enjoy a higher profit margin
Labour Productivity Can be Improved By:
Investing in new machinery
Training
Financial incentives for improved performance
Labour Turnover
Labour Turnover – the proportion of staff leaving a business over a period of time
Labour Turnover = Number of Staff Leaving x 100
Average Number of Staff
Why is Labour Turnover Important for Competitiveness?
High rates of labour turnover often indicate problems of low morale. This could be caused by:
Poor pay and working conditions
Poor management
Lack of training
Lack of job satisfaction
Problems resulting from high labour turnover:
Increased recruitment and selection costs
Increased induction training costs
Low productivity as new employees take time to learn the skill required
However, some labour turnover is good for a business:
New staff can bring in new ideas
Existing staff who have worked a long time for the business may become set in their ways
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller emily1744. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.21. You're not tied to anything after your purchase.
