Measures of Effectiveness of

Employment Relations

Staff turnover

• The percentage, each year of employees who leave their jobs for reasons other than dismissal, retirement, retrenchment or death

• All of the voluntary departures

• A high rate of staff turnover “can” be an indicator of poor employment relations in a business

Quality• poor quality products are often an

indicator of poor employment relations

• Workers who feel disgruntled in their employment are less likely to strive to produce a quality product and take pride in their work

Absenteeism• Time taken off work by employees that has

not been approved in advance by employers

• This can be a significant disruption to business as it prevents production and can result in large financial costs for the business

• Absenteeism may occur for many legitimate reasons but high absenteeism rates can also be an indicator of poor employment relations

Disputes• Disputes usually take the form of

industrial action such as stop work meetings or strikes but can involve lock outs

• These are the most obvious indicator of employee (or employer) dissatisfaction

Benchmarking• Occurs when a business observes

best practice in relation to other businesses in the same or a similar industry

• E.g. comparing levels of customer service, number of sales, labour productivity

• If a business is performing well below its competitors in a number of areas, this may be an indicator of poor employment relations