3.5.3 Functions of an HR department

Question 1

Functions of an HR department

Answer 1

• recruitment
• HR planning
• retention
• training
• redundancy and dismissal
• motivation

Question 2

Measures of HR performance

Answer 2

• Labour turnover
• Labour productivity
• Employee retention

Question 3

Labour turnover

Answer 3

% of the workforce that leaves a business within a period of time

Question 4

Labour productivity

Answer 4

output per employee

Question 5

Absenteeism

Answer 5

% of staff who are absent from work

Question 6

Employee retention

Answer 6

the ability of a business to convince its employees to remain with the business

Question 7

Labour turnover formula

Answer 7

(number of employees leaving during a period/ average number employed during period) x 100

Question 8

Labour retention formula

Answer 8

(number of staff staying per period / average number of employees) x 100

Question 9

Problems of high staff turnover

Answer 9

• higher costs (training and recruitment)
• increased pressure on remaining staff
• disruption to production/productivity
• harder to maintain required standards of quality and customer service
• hard to maintain a strong culture

Question 10

Why do staff want to leave?

Answer 10

• types of business (seasonal, temp staff)
• financial/non-financial
• working conditions
• opportunities for promotion
• standard of recruitment
• economic conditions
• labour mobility
• employee loyalty
• poor management

Question 11

Ways to improve staff turnover

Answer 11

• effective recruitment and training - recruit the staff, do all you can to keep the best staff, train and monitor the performance of managers
• provide competitive pay and other incentives (holiday, generous maternity and paternity leave)
• job enrichment
• reward staff loyalty (service awards, extra holiday)

Question 12

Labour productivity

Answer 12

output per period/ number of employees at work or number of worked hours