3.5

What is labour productivity?

Measures output per worker and shows how efficiently employees are working.

How is labour productivity calculated?

Labour Productivity = \frac{Output}{Number of Employees}.

What improvements can be made if labour productivity is low?

Training, motivation (bonuses, incentives), better technology, and improved management/leadership.

What is labour turnover?

Percentage of employees leaving a business over time.

How is labour turnover calculated?

Labour Turnover = \frac{Number leaving}{Average number employed} \times 100.

What improvements can be made if labour turnover is high?

Increase pay/financial rewards, improve working conditions, career progression opportunities, and better recruitment.

What is labour retention?

Ability of a business to keep employees, opposite of labour turnover.

How is the retention rate calculated?

Retention Rate = 100\% - Turnover Rate.

What improvements can be made if labour retention is low?

Employee benefits, job security, training & development, and employee share ownership schemes.

What is absenteeism?

Measures how often employees are absent from work.

How is the absenteeism rate calculated?

Absenteeism Rate = \frac{Days lost through absence}{Total possible working days} \times 100.

What improvements can be made if absenteeism is high?

Flexible working, better working conditions, health & wellbeing support, and strong management/monitoring systems.