Workforce Planning (Cambridge (CIE) A Level Business): Revision Note

Fresh Bites is a fast-growing chain of cafés based in urban areas across several countries. The company focuses on offering healthy snacks and drinks with fast service

Over the past 12 months, Fresh Bites has experienced high labour turnover, especially among its frontline staff, such as baristas and servers. Many employees leave within 6 months, often moving to other hospitality businesses or retail jobs

Despite offering flexible shifts, employee feedback shows that staff feel overworked and underappreciated. Some managers have also left for better-paid roles in competitors like international coffee chains

Problems

• Increased costs: Fresh Bites has spent more on recruitment adverts, interviews, and induction programmes, straining its HR budget

• Low productivity: New staff often take weeks to become fully efficient, which affects speed of service and increases customer waiting times

• Customer dissatisfaction: Regular customers notice the constant change of staff and feel less connected to the brand

• Team disruption: Frequent resignations have made it difficult for teams to build strong working relationships

• Loss of experience: Skilled supervisors who knew how to deal with difficult customers or train others have left, creating knowledge gaps

Opportunities

• Fresh talent: Some of the new hires have brought creative ideas for improving the menu and customer experience.

• Performance shake-up: HR has started to review the training and reward systems to make the company more attractive and reduce poor performers.

• Cultural reset: With many new staff joining, FreshBites is working on creating a more positive and inclusive workplace culture.

Alpine Tech is a well-established electronics manufacturer based in Germany, producing parts for smartphones and laptops

Most of its factory workers have been with the company for more than 10 years. Staff turnover is very low, thanks to good pay, job security, regular bonuses, and strong relationships between employees and managers

The HR department is proud of this loyalty, but senior managers have recently raised concerns that the company may be too set in its ways, especially as global competitors adopt newer technologies and faster production methods

Problems

• Lack of innovation: Few new employees join, so fresh ideas and alternative perspectives are rare

• Resistance to change: Long-serving staff are comfortable with current methods and reluctant to try new systems or processes

• Limited promotion opportunities: With most positions filled, younger or ambitious employees feel there’s little room to grow, risking demotivation

• Higher labour costs: Many staff receive high wages and generous benefits, which increases overall labour expenses

• Skills gaps: Some emerging technologies require new skills that existing workers haven’t been trained in

Opportunities

• Experienced workforce: Employees know their roles well, leading to high productivity and fewer mistakes

• Lower HR costs: With fewer people leaving, recruitment and training costs are minimal

• Stronger teams: Long-term employees have built strong relationships, improving teamwork and workplace communication

• Consistent quality: Customers and partners can rely on the stable and consistent output from Alpine Tech

• High staff morale: Many employees feel loyal to the company, leading to a positive working environment and low absenteeism