Employing in Business

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1. From the information provided it seems that the business uses a private ltd structure. 2. Employment on a permanent basis means that the employee has the job securely with no end date or contract renewal, on the other side of this style of employment is temporary employment, meaning the employer hires the worker for a set period of time such as Christmas or summer time. Both methods of employment have their pro’s and con’s, however, the main benefits of permanent employment are; lower staffing costs as a result of a lower employee turnover, meaning less costs on training staff and administration, whereas in temporary employment, the costs of training and interviewing new staff are much greater. Secondly, working on a permanent basis allows a company to make more accurate predictions about the future of the company based on current stable worker output which is not likely to change. This cannot be done with a temporary employee structure, as the number of workers and the quality is always changing for the future. 3. A firm such as Haywood Associates ltd could encounter many problems when employing staff: i. The cost of employing people. This is a major problem especially for small businesses such as Haywood Associates, as well as salary paid and wages, the business also has to pay other costs such as National Insurance contributions. ii. Meeting the range of employment legislation requirements. This is often seen as a real burden for small businesses such as Haywood Associates, as they do not have the human resources departments to give advice on employment responsibilities. iii. Managing staff. Leading and managing is important in ensuring that employees perform their jobs well. 4. The advantages of Haywood Associates of using part time employees are: i. It is an efficient way to costs down in areas where full time employment is unnecessary ii. It is a way of building flexibility, allowing a...
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