1. Main Measures of Employee Effectiveness Absenteeism Percentage of staff who are absent from work Labour Productivity Output per Employee Staff Turnover Percentage of staff who leave during a period

2. Staff Turnover

3. Measuring Workforce Effectiveness

6. What is Labour Turnover? The percentage of the workforce (employees) that leave a business within a given period (usually a year)

7. Labour Turnover Formula Labour turnover is calculated using this formula: Number of employees leaving during period Average number employed during period X 100

8. Labour Turnover Example Surridge Porridge is a manufacturer of breakfast cereals. In 2008 it employed an average of 80 staff. During 2008, the business recruited 12 staff to replace 15 who left. = 18.75% Labour turnover = Number of employees leaving (15) Average number employed (80) X 100

14. Labour Productivity

16. Labour Productivity Formula Labour productivity is calculated using this formula: Output per period (units) Number of employees at work The answer from the formula is usually expressed in terms of output per employee e.g. 1,000 units per employee

17. Labour Productivity Example (1) Marcouse Plastics makes 5,000 widgets each month. Total monthly labour hours are 1,250. What is labour productivity (hours per unit)? = 0.25hrs / unit Labour productivity = Labour hours per month (1,250) Units produced per month (5,000)

19. Absenteeism

20. Absenteeism Formula (1) Absenteeism calculated using this formula: Number of staff absent during period Number employed during period X 100

21. Absenteeism Formula (2) Number days taken off for unauthorised absence (during period) An alternative formula uses the total number of days worked over a period (usually a year) Total days worked by workforce over the period X 100

24. Absenteeism Example Anderton Alarms employs 20 staff and makes ready-meal pies for supermarkets. In 2008, the total available working days were 4000. Unauthorised absence for 2008 was recorded at 560 days = 14.0% Absenteeism = Days Absent (560) Total potential working days (4000) X 100

25. Measuring Workforce Effectiveness