2.4 - labour turnover, recruitment, appraisals

labour turnover

the amount of people who leave an organisation as a percentage of a workforce

reasons for labour turnover

• external promotion opportunities

• dissatisfaction in the workplace

• career break

• personal

• redundancy and dismissal

• retirement

labour turnover rate formula

= (employees who leave/ average size of workforce) x 100

costs of high labour turnover

• recruitment of new workers

• induction and training of new staff

• lost productivity between loss and recruitment

• negative publicity

appraisal definition

formal procedure of assessing the performance and effectiveness of employees in relation to their job description and business objectives

reasons for conducting appraisals

• measure of performance

• improved efficiency

• identifying needs

• reward

• communication

• goal setting

targets set for employees to achieve

• S → specific

• M → measurable

• A → achievable

• R → realistic

• T → timely

types of appraisals

• formative appraisal

• summative appraisal

• 360 degree feedback

• self appraisal

formative appraisal definition

takes place on regular and continual basis

summative appraisal definition

conducted periodically → annually or at the end of a major task

360 degree feedback definition

feedback from a range of people who work with or interact with the appraise

self appraisal definition

individual employees reflecting on and evaluating their own performance against pre-agreed standards

steps of recruitment

1. job analysis

2. job description

3. person specifications

4. job evaluation

5. job advertisement

6. shortlisting

7. interviews

8. selection

9. background checks

10. job offer

methods of recruitment

• internal external

internal recruitment definition

hiring people who already work at a firm to fill a vacant post

advantages of internal recruitment

• lower risks

• saves money

• saves time

• improves motivation

• smoother transition

limitations of internal recruitment

• limited pool of suitable workers

• no new ideas

• internal vacancy is created

• potential conflict

external recruitment

hiring people from outside the organisation to fill vacant post

forms of external recruitment

• recruitment/ employment agencies

• headhunters

• government agencies

• online recruitment platforms

advantages of external recruitment

• larger pool of workers to choose from new ideas

limitations of external recruitment

• greater risks

• more expensive

• more time consuming

• demotivating for existing workforce