Approaches to Staffing (Edexcel A Level Business): Revision Note

An introduction to staffing

• Effective human resource management (staffing) is important to business as it ensures that the organisation has:

  • The right people, in the right roles, with the right support, with opportunities to succeed

• This leads to higher productivity, more profits and a positive work environment

• Human resource management focuses on how employees can be effectively

  • Recruited

  • Deployed (used)

  • Developed and trained

  • Motivated

  • Managed and led

Staff as an asset and as a cost

• Staff represent both an asset and a cost to a business

• Staff are an asset to a business, as they bring knowledge, skills and expertise to the business

  • Staff can drive innovation and enhance customer service, all of which contribute to the success and profitability of the business

  • Staff can help to build a positive reputation for the business through their interactions with customers, suppliers and other stakeholders

• Staff also generate costs to a business

  • For many businesses, staffing is one of the largest costs they have

  • There are costs associated with:

    • Hiring and training workers

    • Managing workers, as managers have to be hired

    • Paying salaries of full-time workers

    • Paying wages of hourly staff

    • Additional benefits, such as company cars, pensions, healthcare, etc.

    • Letting workers go (redundancy payments)

The impact of national minimum wages on staffing costs

• The introduction or increase of a national minimum wage is relevant to employees who receive a wage rather than a salary

  • Businesses that employ workers on a wage basis may face higher labour costs

  • Businesses that employ workers on a salary basis are less affected by the introduction of a minimum wage

    • They already pay a fixed amount regardless of the number of hours worked

Developing a flexible workforce

• Flexible working is the development of a culture where workers are equipped to do different roles or where they work in a range of employment patterns (full-time, part-time, zero hours contracts, work from home, etc.)
   

• Developing a flexible workforce can bring many benefits to a business

  • Each specific approach should be assessed, as there are potential disadvantages to each

Ways to develop a flexible workforce

 Multi-skilling

• Multi-skilling is the process of training workers to fulfil multiple job roles within a business

  • E.g. Southwest Airlines trains staff to handle multiple roles, including check-in, baggage handling and customer service

Part-time and temporary working

• Someone who works part-time may only work two or three days a week

• Someone who works temporarily shows up for work whenever the business needs them

  • E.g. Amazon employs temporary workers to handle seasonal spikes in demand, such as Christmas

Outsourcing

• Apple outsources much of its manufacturing to Foxconn in China

  • This allows Apple to produce products at a lower cost and maintain competitive pricing

Flexible hours

• Flexible hours allow employees to schedule working hours around their individual needs and accommodate their commitments outside of work

• A flexible-hours schedule usually involves working some set hours, with the remainder of hours organised according to the employees' needs

  • E.g. An employee may be expected to be at work between the hours of 10 am and 2 pm, but they can choose when they complete the rest of their working hours

Home working

• Advances in communication technology have enabled a larger proportion of workers than ever before to work from home

  • Employees use tools such as email, instant messaging, collaborative software, scheduling apps and videoconferencing to carry out work remotely

• Home working has a range of advantages and disadvantages for both the business and its employees

The distinction between dismissal and redundancy

Dismissal

• Dismissal (firing or sacking) is the termination of employment by an employer against the will of the employee

  • Employees are usually terminated due to their misconduct (e.g. violating company policy) or poor performance

  • The employer may choose to dismiss them immediately (without notice or compensation) or provide a notice period, which the employee can work out

Redundancy

• Employees are made redundant when their job is no longer available and the business reduces the size of its workforce

  • The termination is not due to any fault of the employee

  • The employer must follow certain legal procedures, including providing notice and paying redundancy compensation

Different approaches to employer/employee relationships

• The nature of the employer/employee relationship is influenced by whether there is an individual approach or a collective agreement

Individual and collective bargaining approaches