Approaches to Staffing (Edexcel A Level Business)

• Effective human resource management (staffing) is important to business as it ensures that the organization has:
  • The right people, in the right roles, with the right support, with opportunities to succeed
     
• This will lead to higher productivity, more profits and a positive work environment
   
• Human resource management focuses on how employees can be:
  • Effectively recruited
  • Effectively deployed (used)
  • Effectively developed and trained
  • Effectively motivated
  • Effectively managed and led

• 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 increase productivity, 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 - and for many businesses staffing costs are one of the largest costs they have
  • There are costs associated with hiring and training workers
  • There are costs associated with managing workers as managers have to be hired
  • There are costs associated with paying the salaries of full time workers
  • There are costs associated with paying wages of hourly staff
  • There are costs associated with offering staff additional benefits, such as company cars, pensions, healthcare etc
  • There are costs associated with letting workers go (redundancy payments)
    
    

The Impact of National Minimum Wages on Staffing Costs

• If the government introduces (or raises) a national minimum wage it will apply to employees who receive a wage, rather than a salary
• Businesses that employ workers on a wage basis will face higher labour costs
• Businesses that employ workers on a salary basis are less likely to be affected by the introduction of a minimum wage, as they already pay a fixed amount regardless of the number of hours worked

• 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
      

Allowing workers to work from home is just one of several methods available to businesses 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. South West Airlines trains staff to handle multiple roles including check-in, baggage handling and customer service
    
    

The Advantages and Disadvantages of Multi-skilling

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
    
    

The Advantages and Disadvantages of the Business of Part-time & Temporary working

Outsourcing

• Apple outsources much of its manufacturing to Foxconn in China
  • This allows the company to produce products at a lower cost and maintain competitive pricing
    
    

The Advantages and Disadvantages of Outsourcing

• 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 they can work out
    
    
• Employees are made redundant when the 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

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

Individual and Collective Bargaining Approaches Explained