1.4.1 Approaches to staffing

• Employees are an asset…. means that they are something that a business has that is valuable.
• What do employees provide that is seen as ‘valuable’ to a business?

  • Efficiency
  • Skills
  • Abilities
  • Add value
  • Customer service
• As a result of having these valuable employees, what is the impact on the business?

  Pricing

  Reputation

  Innovation

  Product Quality

  Recruitment…
• And how might the employees feel as a result of being seen as an asset?

  Loyal Productive

  Efficient

  Proud

  Satisfied

  Creative
• Employees are also a cost
• Employees get remuneration for the work they do
• Remuneration

  An amount of money that is paid to somebody for the work they have done
• Common forms of remuneration

  • wages
  • salary
• Wage

  Paid to a worker based on the amount of work that they have done e.g. hours in a shift
• Wage

  Usually for lower-skilled or manual workers e.g. shop workers
• Salary

  A fixed amount that is usually paid monthly e.g. don't get extra for working more hours/harder
• Salary

  Usually highly-skilled or not directly making the products e.g. engineers
• National Minimum Wage (NMW)

  The legal minimum wage that businesses must pay their employees per hour
• The UK government sets the National Minimum Wage to protect workers from being underpaid
• Factors affecting National Minimum Wage

  • Age of the worker
  • Whether the worker is an apprentice
• Brands such as WH Smiths, Argos and Marks & Spencer were included in the list but say that "the breaches were unintentional and had been swiftly remedied"
• Current National Minimum Wage rates need to be researched and filled in the table in your booklet
• It is questioned why National Minimum Wage rates differ based on age
• Aside from remuneration, there are other ways employees cost a business money:

  1. Recruitment
  2. Training
  3. Welfare
  4. Severance
• Contact of employment

  
  

  a legally binding agreement between the employer and the employee. 
• What would be included in a “contract of employment”?

  • Location
  • Working hours
  • Job title
  • Salary/ wages
  • Star/ end date
  • Holiday entitlement
  • Duties/ responsibilities
  • Sick pay
• Dismissal

  • Dismissal happens if an employee has breached their contract of employment often informally called being ‘fired’ or ‘sacked’.

  It is the employer’s decision to end the contract, not the employees.
• Some legal reasons for dismissal:

  • An employee is not capable of doing their job e.g. poor performance
  • An employee has behaved badly (misconduct) e.g. violent or criminal activity 
  • A reason why an employer can’t keep an employee on e.g. lost the right to work in the UK
• Businesses must ensure that dismissal is a fair procedure e.g. they have tried to overcome issues and have investigated problems thoroughly. 

  The reasons for dismissal must not be linked to any form of discrimination!
• Redundancy 

  Occurs when the employee’s job role is no longer required
• Why might a business make redundancies?

  
  

  • Reducing the number of staff employed
  • Business is closing down
  • Relocation of the business
  • Increase in the use of technology
• Redundancies cost money because  the business needs to pay a minimum redundancy payment to employees that have been with the firm for at least two years. There can also be implications on business reputation and future recruitment.
• How to choose?

  • Last in, first out
  • Asking for volunteers
  • Disciplinary records
  • Staff appraisal markings, skills, qualifications and experience
• Where possible, asking employees if they want to take voluntary redundancy is a common procedure before choosing who will lose their job.
• Flexibility in a workplace

  means that a business can match the work done by employees to the needs of the business.
• Flexibility in the workplace could refer to the different ways that employees work, contract types that can be offered or employees being multiskilled so that they can complete a wider variety of tasks.
• Which methods can a business use to allow flexible working?

  • Full time/ part time contracts
  • Outsourcing
  • Home working
  • Flexible hours
  • Shift work
  • Zero hour contracts
  • Permanent/ temporary contracts
• Full time contract

  Employees that work at least 35 hours a week
• Part time contract

  Less than ‘standard’ hours which can mean more flexibility in terms of covering absent employees.
• Permanent contract

  A contract which has no end date and provides more financial security.
• Shift work

  Used when a job role needs filling for more hours in a day than can be completed by a single worker so the hours are split up.
• Home working

  Employees can work from home some or all days of the week.
• Flexible hours (flexitime)


  Employees complete a set number of daily/weekly/monthly hours at times that suit them.
• Zero hour contract

  A business employs a worker but does not offer them guaranteed hours.
• Outsourcing


  When a business hires out some activities to other businesses rather than doing them in house.

  Ex: hiring them to produce marketing materials or assemble a certain product.