staff are an asset to a business as they bring knowledge and skills to the business
they can:
increase productivity
drive innovation
enhance customer service
this improves brand reputation and customer loyalty
staff as a cost
how is staff a cost to a business?
staff generate on of the highest costs to a business
costs include recruitment, training, remuneration, welfare and even severance
employers may just pay for the legal national minimum wage or a low salary
flexible workforce
workers are equipped to do different roles or where they work in a range of employment patterns (full time, part time, zero hour contracts, work from home etc.)
developing a flexible workforce can bring many benefits to a business
various ways to develop a flexible workforce
multi-skilling
part-time staff/temporary workers
flexible hours/home working
outsourcing
multi-skilling- evaluation
the process of training workers to fulfil multiple job roles within a business
advantages:
improves productivity as employees can do a range of tasks - addresses issues around staff absence
increase skill set of workers - increase motivation
disadvantages:
worker has more tasks to do = worker becomes easily tired, burnt out or overwhelmed
May require significant investment in training and development
May not be appropriate for all job roles, especially those that require a high level of expertise
part-time staff/temporary workers- evaluation
part-time: someone who may work two/three days a week
temporary: employed for a limited period only
advantages:
Flexible working arrangements can help to attract and retain talent, esp. staff who value work-life balance
will improve productivity, as staff can work during their most productive hours and avoid distractions
employers dont have to recruit full time jobs for part time roles
employees can choose roles/hours that suit their lifestyles
disadvantages:
difficult communication
Monitoring and managing workers can be more difficult
flexible hours/home working
flexible hours: an employee could start early and finish late and vice versa; by working an hour or two extra each day
home working: undertake regular work from home
flexible hours- evaluation
advantages:
better job satisfaction and higher staff morale
makes it easier for businesses to offer extended opening hours
disadvantages:
The potential loss of customers if key employees reduce their working hours
Lower employee productivity
Managers finding it difficult to manage or administer the flexibility
home working - for the business- evaluation
advantages:
Smaller or fewer premises may be required, reducing costs
High quality workers may be attracted from a wide geographical area
Workers may be more productive if they work in isolation, away from distractions
disadvantages:
The cost of equipping workers with technology to work remotely may be significant
There may be less opportunity for collaboration between workers, reducing innovation
Careful monitoring will be required to ensure remote workers remain focused on tasks
home working - for the employee- evaluation
advantages:
Commuting costs, such as train fares, are eliminated
Stress reduced as a result of not having to travel to work
Some flexibility may be possible, allowing workers to manage other commitments
disadvantages:
Staff may feel isolated from colleagues
Household costs such as electricity and heating may increase
A healthy division between work and home life may be difficult to manage
outsourcing - evaluation
getting other people or businesses to undertake work that was originally done in-house
advantages:
This may allow businesses to access specialised skills that may not be available in-house
May reduce labour costs
disadvantages:
This may lead to a loss of control over quality and delivery, especially if the outsourcing partner is based in another country
This may create ethical concerns, especially if the partner is based in a country with lower labour standards or human rights abuses
outsource company can steal business' ideas
Dismissal (firing/sacking)
Termination of employment of an employer against the will of the employee
Due to misconduct or poor performance
Dismissal can be immediate or notice given
Redundancy
The business has to reduce its workforce.
Employees made redundant because their job is no longer available
Not due to any fault of the employee
Redundancy compensation (payment) is given - can increase short term costs
Sometimes it is to reduce costs in the long term
In short term, give compensation
Two approaches in conflict
Individual approach
Collective bargaining
individual approach
refers to when a single worker negotiates their working conditions and pay with management
pay and other conditions vary between employees
individuals with good bargaining skills may get a ''better deal''
collective bargaining
refers to the negotiation between employers and workforce representatives, such as trade union representatives
a representative body would have more strength (as they represent a larger body of workers) to negotiate with management compared with a single employee
trade union
an organisation of workers that exists to promote the interests of their members. it looks after their interests at work by doing things like:
negotiatingagreements with employers on pay and conditions
discussing big changes like large scale redundancy