Exam code: J204
What is a financial method of motivation that a restaurant manager may use?
An award scheme for the chefs to develop low cost meals
Introduce profit sharing for the chefs
Make staff pay for any glasses or plates they break
Praise staff who suggest how the restaurant could save money
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C & J Clark International Ltd (Clarks)
Clarks is a successful UK footwear brand with ranges for children, women, and men. Their market is very competitive. Clarks employs specialist designers who create new shoe styles in response to fast-changing fashion trends.
The designers interpret quantitative data carefully when planning new shoe styles. The designers work closely with employees from other functional areas of the business, such as marketing, finance, and retail, to ensure that the new shoe styles meet customers’ needs profitably.
Clarks works hard to retain its team of designers, as they are central to its success. However, Clarks sometimes needs to recruit new designers and uses several selection methods to help find the best person available to fill the vacancy.
Explain three reasons why employee retention is important for Clarks.
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Which one of the following is not a benefit to a business of improving employee retention?
Cost saving
Less time spent on recruitment
Lower selling price
Reduced need for training
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McDonald’s
Six weeks ago James saw an advertisement for a job at McDonald’s. He went into the restaurant and was given an application pack, including a job description, a person specification and a link to an online application form.
James completed the application form and emailed it to the restaurant. A manager then telephoned James and asked him to come for an interview at the restaurant. James had to bring his GCSE certificates to the interview. After the interview, James had to do a group activity where he was asked to complete a task as a member of a team.
James was very pleased to get a letter two weeks ago offering him a job. Included with the letter was a contract of employment, which he has to sign and bring with him on his first day of work. His starting wage will be £7.00 per hour, with a 10% increase after he has been fully trained.
James has been offered a contract of 16 hours per week once he is fully trained.
Calculate what James’ weekly pay will be once he is fully trained.
Answer: £ ........................................................................
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What is a non‑financial method of motivation that a manufacturer of handmade wooden toys could use?
Giving production operatives a bonus for every 1000 toys made
Increasing the rate of pay for workers in the dusty woodcutting shed
Praising the workers who take the greatest care when painting the designs
Providing free private medical insurance to all workers
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Employee retention:
extends the working hours of employees
leads to higher recruitment costs
minimises time spent selecting new workers
reduces discrimination in the workplace
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A supermarket chain is receiving an increasing number of complaints about the poor attitude of its sales assistants, especially when the stores are busy.
What would help to deal with this problem?
Employ fewer sales assistants at each of its stores
Find ways to increase employee motivation at each of its stores
Limit the number of customers that can enter each store at any one time
Reduce the holiday entitlement of any employee that is rude to a customer
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A business has introduced a bonus scheme, based on production targets, to help motivate its staff.
Which of the following statements would not be true?
The bonus scheme is a form of performance-related pay
The bonus scheme will increase business costs
Unrealistic targets may lead to lower levels of motivation
Workers who do not reach the target will have their basic pay reduced
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Xaio and Zhou own a building firm that employs 50 workers. Xaio and Zhou are concerned about the costs of recruitment. They are constantly having to advertise for replacement workers.
Which of the following would help Xaio and Zhou deal with this problem?
Decrease the hourly rate paid to the workers
Find ways to increase employee retention
Give the workers fewer fringe benefits
Obtain additional finance from the bank
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Waitrose
Waitrose is a supermarket chain with over 300 stores throughout the UK. Waitrose specialises in good quality food, targeted at customers with high levels of income. The company is owned by its employees, who receive a range of benefits including profit sharing. Waitrose continues to offer profit sharing to its employees, even though another UK supermarket chain has replaced this type of benefit with higher rates of pay.
Waitrose has over 50 000 employees. Many employees are recruited externally. As part of the selection process, potential employees take part in lengthy interviews, group activities and tests. References are requested for all new employees. Once appointed, all employees receive regular training.
The supermarket industry is very competitive, so new product development is important to Waitrose. Qualitative market research data is collected using methods including focus groups and customer trials. This data then needs to be communicated effectively between employees at Head Office.
Waitrose is always considering new ways of motivating its employees.
(i) Identify two non-financial methods of motivating employees.
[2]
(ii) Evaluate whether or not Waitrose should continue to offer profit sharing to its employees.
[7]
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A jet ski retailer with limited funds has a problem with the motivation levels of its 25 sales assistants.
Which one of the following methods should the jet ski retailer use to improve the sales assistants’ motivation levels?
Increase the sales assistants’ pay rate by £3 per hour
Offer sales assistants a bonus of £500 for each jet ski sold
Reduce the number of fringe benefits given to employees
Set up a ‘seller of the month’ award scheme
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Superdry plc
Superdry is a successful international brand of clothing featuring American- and Japanese-inspired graphics. In 2018, over 4800 people were employed by the company, which is committed to high quality. Superdry’s policies include one against discrimination in its workforce and another to support employee retention.
The company uses many different distribution channels. These include:
135 Superdry stores across the UK and Europe
Superdry’s own website
other retailers, including Next in the UK, which allows the brand to reach new customer groups.
Superdry regularly invests in its own stores. To keep its retail stores exciting and encourage customers to visit, there is a regular re-fit programme. In 2017, the company spent £41.4m on store-related investment, including the re-fitting of 11 stores.
The company faces competition from retailers of all sizes, ranging from sole traders to other public limited companies.
Explain one reason why employee retention is important for Superdry.
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Redrow Homes
Redrow Homes is one of the UK’s leading housebuilders. Housebuilders, such as Redrow Homes, typically use self-employed construction professionals alongside their own employees.
Redrow Homes employs over 2300 people in a range of jobs including trades such as carpentry, plumbing and bricklaying. They also employ landscape designers, customer service administrators and sales advisors to sell the houses. The company is committed to staff development, with 15% of the workforce undergoing an apprenticeship or other formal training programme.
Redrow Homes has been named one of the ‘Top 100 Apprenticeship Employers’ for the last five years and was recently named the ‘Construction Industry Training Board Apprentice Employer of the Year’. At any one time the company employs at least 130 apprentices, as the company feels that it is an excellent way to find and develop young motivated staff. The company offers apprentices a clear career path whereby they gain qualifications alongside work experience and a good wage.
Identify two reasons why employee motivation is important to Redrow Homes.
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Redrow Homes
Redrow Homes is one of the UK’s leading housebuilders. Housebuilders, such as Redrow Homes, typically use self-employed construction professionals alongside their own employees.
Redrow Homes employs over 2300 people in a range of jobs including trades such as carpentry, plumbing and bricklaying. They also employ landscape designers, customer service administrators and sales advisors to sell the houses. The company is committed to staff development, with 15% of the workforce undergoing an apprenticeship or other formal training programme.
Redrow Homes has been named one of the ‘Top 100 Apprenticeship Employers’ for the last five years and was recently named the ‘Construction Industry Training Board Apprentice Employer of the Year’. At any one time the company employs at least 130 apprentices, as the company feels that it is an excellent way to find and develop young motivated staff. The company offers apprentices a clear career path whereby they gain qualifications alongside work experience and a good wage.
Businesses may use financial or non-financial methods to motivate employees.
State one example of a:
(i) financial method to motivate employees
[1]
(ii) non-financial method to motivate employees
[1]
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