Syllabus: AQA - AS and A Level Business
Module: 3.6 Human Resource Management
Lesson: 3.6.2 Analysing Human Resource Performance

Introduction

The AQA specification for AS and A Level Business requires students to explore how human resource (HR) performance is analysed to inform decisions and planning. In section 3.6.2 of the syllabus, learners are expected to calculate and interpret HR data such as labour turnover, productivity, and employee costs. This topic is critical not only for academic success but also for preparing students to understand how businesses make workforce-related decisions in real-life contexts.

Aligned with the AQA curriculum and mapped across multiple Gatsby Benchmarks, this lesson supports both curriculum delivery and careers provision, making it particularly valuable for business teachers, careers leads and SLT seeking whole-school impact.

Key Concepts

From the AQA specification, students should be able to:

• Calculate and interpret key HR metrics, including:

  • Labour turnover

  • Labour productivity

  • Employee costs as a percentage of turnover

  • Labour cost per unit

• Use these metrics to inform HR decision-making and strategic planning, such as:

  • Identifying trends in workforce performance

  • Diagnosing problem areas in organisational productivity or cost

  • Comparing HR efficiency across time periods or competitors

This analytical approach supports wider commercial awareness by helping students understand how HR data influences the broader business strategy.

Real-World Relevance

In the wake of remote work trends and ongoing economic uncertainty, many UK companies—including retailers like John Lewis and Next—have publicly discussed workforce optimisation strategies. John Lewis, for instance, recently published data-driven changes in employee structure, linking HR performance directly to commercial viability.

Similarly, the NHS regularly uses labour turnover and productivity statistics to assess workforce pressures and plan recruitment drives. By analysing metrics such as cost per employee and staff retention rates, public and private organisations alike are making critical decisions that influence performance, service delivery, and profitability.

Embedding these case studies into your lesson helps students see the real-world application of the data they’re analysing.

How It’s Assessed

In both AS and A-level exams, this topic is assessed through a mix of:

• Calculation questions – requiring students to apply formulae to real-world data

• Data response questions – where students interpret trends, patterns, and anomalies

• Extended written responses (up to 25 marks) – evaluating how HR data might support or hinder a business strategy

Command words commonly used include:

• Calculate (quantitative accuracy)

• Interpret (draw insights from data)

• Assess / Evaluate (weigh up the significance of data in decision making)

Mark schemes reward:

• Correct application of formulas

• Strategic interpretation in context

• Coherent argumentation linking data to business outcomes

Enterprise Skills Integration

This lesson integrates several of the Enterprise Skills thematic pillars:

• Commercial Awareness: Students evaluate how HR costs and productivity affect profitability.

• Decision-Making & Problem-Solving: They assess scenarios where different responses to HR data could drive better outcomes.

• Workplace Readiness: Through analysing real metrics, students gain insights into how performance is managed in professional settings.

These align with the Skills Hub tools such as scenario-based decision-making exercises and data interpretation modules, which can be introduced to reinforce concepts with real employer-backed challenges.

Careers Links

This module supports Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4 – By linking HR theory to real organisational decision-making

• Benchmark 5 – Through case studies involving real companies and employer engagement tools

• Benchmark 6 – Via simulated workplace scenarios using HR data to make decisions

Career Pathways connected to this topic include:

• Human Resources Officer

• Data Analyst (HR focus)

• Business Consultant

• Operations Manager

• Industrial Psychologist

Tools within Skills Hub Futures include mapped pathways that show students how HR analysis skills connect to roles in diverse sectors—from retail to healthcare.

Teaching Notes

Delivery Tips:

• Start with a realistic HR dataset (e.g. a fictional retail chain) and walk students through calculating and interpreting labour turnover and cost per unit.

• Use an active learning approach: have students role-play HR managers justifying actions to SLT based on staff productivity trends.

• Pair with Skills Hub Business or Business Simulations to offer decision-making practice validated by employer insights.

Common Pitfalls:

• Students often confuse labour turnover with absenteeism. Reinforce clear definitions.

• Misapplication of percentage formulas is frequent—ensure practice with contextualised data.

Extension Activities:

• Task students with recommending HR strategies based on given performance data—e.g. training investment vs. recruitment.

• Integrate cross-curricular elements by involving maths (percentage change, ratio interpretation) and English (report writing for HR recommendations).