1.4.1 Approaches to staffing

Why is effecting human resource management (staffing) important?

• It ensures 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

How are staff an asset to a business?

• 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

How are staff costs for a business?

There are costs associated with:

• Hiring and training workers

• Managing workers, as managers have to be hired

• Paying salaries for full-time workers

• Paying wages for hourly staff

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

• Letting workers go (redundancy payments)

What is 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 if a minimum wage

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

What is flexible working?

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.)

Ways to develop a flexible workforce

• Multi-skilling

• Part-time & temporary

• Flexible hours & working from home

• Outsourcing

What is multi-skilling?

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

Advantages of multi-skilling

• Businesses utilise their workforces more efficiently, which reduces labour costs and increases productivity

• It can help improve patient outcomes in healthcare industries, as workers with a broader range of skills can provide more comprehensive care

Disadvantages of multiskilling

• May require significant investment and training and development

• May not be appropriate for all job roles, especially those that require a high level of expertise

What is 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

Advantages of part time and temporary working

• Flexible working arrangements can help businesses to attract and retain talent, especially staff who value work-life balance

• This may improve productivity, as staff can work during their most productive hours and avoid distractions

Disadvantages of part-time and temporary working

• Flexible working arrangements can create challenges in terms of communication and collaboration (especially is staff are working remotely)

• Monitoring and managing flexible workers can be more difficult

What is outsourcing?

When a business process is contracted out to another company, for example, one company hires another company to manufacture products.

Advantages of outsourcing

• This may allow businesses to access specialised skills that may not be available in-house

• May reduce labour costs

Disadvantages of outsourcing

• Thus may lead to loss of control over quality and delivery, especially if the outsourcing partner is based in another country

• This may create ethical concerns, especially if the partner is based in a country with lower labour standards or human rights abuses

What are flexible hours?

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

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

What is 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

Advantages and disadvantages of home working for the business

Advantages:

• Smaller or fewer premises may be required, reducing costs

• High-quality workers may be attracted from a wide geographical area

Workers may be more productive if they work from isolation, away from distractions

Disadvantages:

• The cost of equipping workers with technology to work remotely may be significant

• There may be less opportunity for collaboration between workers, reducing innovation

• Careful monitoring is required to ensure remote workers remain focued on task

Advantages and disadvantages of home working for the employee

Advantages:

• Commuting costs, such as train fares are eliminated

• Stress is reduced as a result of not having to travel to work

• Some flexibility may be possible, allowing workers to manage other commitments

Disadvantages:

• Staff may feel isolated from colleagues

• Household costs such as electricity and heating may increase

• A healthy division between work and life may be difficult to manage

What is dismissal?

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

• Usually due to misconduct (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

What is 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

What is the individual approach employer/employee relationship?

• Focuses on the relationship between an employee and their employer

• Assumes that each employee is unique and has their own goals, motivations and interests

• It emphasises the need for tailored compensation packages that cater to each employee’s unique skills and needs

• The employment relationship is a voluntary agreement between two parties in which both negotiate their respective roles, responsibilities and benefits

• The employer has the power to hire, fire and set The terms and conditions of employment

What is the collective bargaining employer/employee relationship?

• A process whereby a group of employees (represented by a trade union) negotiate with their employer for better wages, working conditions and benefits

• Employees have more bargaining power when they negotiate collectively rather than as individuals

• The employment relationship is seen as a power struggle between two parties with conflicting interests

  • The employer wants to maximise profits by keeping labour costs low

  • The employer wants to maximise their wages and benefits

  • The union acts as the collective voice of the employees and bargain with the employer on behalf of all workers