Component 1-28. work force performance

What is absenteeism?

Number of staff absent as a percentage of the total number of staff employed

What is the equation for absenteeism?

Total number of staff absence days per period of time/ total number of working days that should've been worked x 100

Problems of high absentee levels

Not enough employees to meet demand, customer service may be poor, customer satisfaction may not be met, decreased brand loyalty, decreased brand image, increase workload for the other employees, decrease productivity and efficiency

What is labour turnover and its equation?

Another measure of personnel effectiveness it measures the rate at which employees are leaving an organisation

Number of staff leaving per period of time/ average number of staff employed x 100

Why do certain industries Have a high labour turnover.

Lower pay can lead to high level turnover as workers leave to get better paying jobs, limited training and promotional opportunities, poor working conditions, poor recruitment can lead to the wrong type of employees being hired

What are problems caused by high labour turnover

Create a negative brand image, could prevent people from applying, more likely to have to recruit externally, poor reputation, can effect a working environment, new training is consistently required

How can high turnover be beneficial to a business?

New staff can bring in new ideas and experience from their work with other businesses, some workers may be ineffective and it's better for the productivity of the business that these workers leave, where a business pays low wages or working conditions are poor it may be more profitable to have a constant turnover of staff rather than a raise in wages