Turnover, overtime, absence, and litigation costs
FREE03 – People Professionals and Finance
This CIPD Level 0 video from the FREE03 – People Professionals and Finance unit explores critical financial risks in people practice, specifically examining how turnover, overtime, absence, and litigation costs directly impact organisational finances. As part of assessment criteria AC 3.1, the video explains key financial risks linked to people practice, demonstrating how poor workforce management decisions can lead to significant, uncontrolled expenditure across multiple areas. By analysing real-world examples of these four cost drivers, learners will understand the financial consequences of high staff turnover, unmanaged overtime, absence-related losses, and employment disputes. After watching, you'll be equipped to identify and quantify these financial risks in your own organisation, supporting better strategic decision-making around people management.
Assessment Criteria 3.1
Explain key financial risks linked to people practice.
Indicative Content
To include: payroll errors/fraud; non-compliance penalties; poor contractor management (IR35 where relevant); high turnover; uncontrolled overtime; absence and wellbeing costs; litigation and settlement costs; pension obligations.
What You'll Learn
Video covering: Turnover, overtime, absence, and litigation costs
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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