Training and the workforce
Training
- induction training — for new staff, to learn how the firm works.
- on-the-job training — learning while doing the real job.
- off-the-job training — learning away from work, e.g. a course.
- Training costs time and money, but raises quality, productivity, motivation, and helps keep staff.
Practice
Training given to new staff so they learn how the firm works is:
Induction training introduces new staff to the firm; on/off-the-job training builds job skills.
Ending employment
- redundancy — the job is no longer needed (not the worker's fault, e.g. a machine replaces it).
- dismissal — the worker is made to leave for poor work or bad behaviour.
- Employers must follow the law on pay, safety, hours and unfair dismissal.
Practice
Redundancy happens when:
Redundancy is not the worker's fault — the job is no longer needed; dismissal is for poor work/behaviour.
Measuring the workforce
$$\text{labour turnover} = \frac{\text{staff leaving}}{\text{average number employed}} \times 100\%$$
$$\text{labour productivity} = \frac{\text{total output}}{\text{number of employees}}$$
- High turnover → low pay/motivation; raises recruiting costs. Higher productivity → lower cost per unit.
Practice
If 12 staff leave in a year and the average number employed is 80, what is the labour turnover (%)?
Labour turnover = 12 ÷ 80 × 100% = 15%.
You've got it
Key idea
- training types: induction, on-the-job, off-the-job
- redundancy = job gone (no fault); dismissal = worker's poor work/behaviour
- labour turnover = leavers ÷ average staff × 100%; labour productivity = output ÷ employees