Employing People

Question 1

Types of employee used in small businesses

Answer 1

Permanent employees-continuous employment contract with the business
Temporary employees-have a fixed term employment contract
Zero hours contracts-allow a business to have people on-call to work whenever necessary and mutually convenient
Agency staff-have contracts with an employment agency
Self employed freelancers, consultants and contractors- offer their skills to a business for an agreed sum, but work for themselves

Question 2

Permanent staff definition

Answer 2

Are those needed throughout the year and whose services are necessary to the continued running of the business

Question 3

Temporary staff definition

Answer 3

Are those needed to meet seasonal demand, to complete a particular task or to cover for situations such as staff illness and holidays

Question 4

Advantages is full time workers

Answer 4

Available for more hours
Likely to be more loyal than part time staff
More workers want full time work
Recruitment and administration costs are lower,relatively

Question 5

Advantages of part time workers

Answer 5

Reduce costs where full time cover is not needed
Add flexibility, allowing a business to quickly respond to any changes
May suit some workers who do not want full time work

Question 6

Drawbacks and difficulties of employing people

Answer 6

Cost of employing people
Meeting the range of employment legislation requirements
Managing staff
Employee absence

Question 7

Reasons for employing people

Answer 7

Only in the smallest businesses will the owner have the capacity to carry out all the tasks needed to provide the finished product or service
May need to employ people with certain expertise
May be a seasonal business and employ more staff at peak times