Employment contracts Flashcards
Why are businesses increasingly likely to employees more flexible working options?
- Savings on costs- can make substantial savings on overheads if doesn’t have to provide an office & other accommodation for so many employees or if staff can work from home.
- Lots of evidence that flexible working results in better job satisfaction and higher staff morale.
- To reflect the changing profile of the UK workforce.
- Take advantage of developments in technology – it is now simple & cost-effective for employees to be able to access their employers online.
- An increasing need for businesses to be able to deliver services to customers on a 24/7 basis.
What are the possible concerns of flexible working?
Additional administrative work and “red-tape” involved in setting up and running flexible working
The potential loss of customers if key employees reduce their working hours
Lower employee productivity
Inability to substitute for certain skills if certain employees are absent (a common concern of smaller businesses_
Managers finding it difficult to manage or administer the flexibility
What are the different contracts of employment?
Part time
Full time
Job share
Zero hours
What is job share?
When two or more employees combine to fill one job role. This is good for employees who want to work part time hours and can bring more skills into the business.
What are zero hours contracts?
When an employee has no set or guaranteed hours of work.
Gives the business flexibility to meet increases in demand without having to pay staff when they are not needed. However, employees will not have job security or a regular level of income, which could make them less loyal to the business.
What are part time employees & benefits?
Employee works fewer hours than the normal working week, usually between 10- 30 hours.
Are beneficial to a business as they help during busy periods, or they may complete a role that does not require them to work full time. For example, restaurants and bars may employ more staff at the weekend.
What are the benefits of working part time for the employee?
Part-time contracts are beneficial to employees as it allows them to work around other commitments, such as childcare.
Some older employees may not want to retire but may no longer want to work full-time.
What is full time employment?
Works a full working week, usually between 35-40 hours over five days each week.
Why are full time staff beneficial for a business
They are likely to be more skilled & committed to the long-term success of the business.
There is also better communication as full-time staff are more likely to be at work at the same time and can speak directly to each other.
What are advantages of flexible working?
- Easier for business to match demand with supply.
- There may be predictable peaks in demand where can maximise supply of worforce.
- Also will be period of low demand- where not need supply- therefore through methods of flexible employment- can minimise costs during low periods of demand.
- Better able to attract & retain sufficient staff- as increasingly looking for flexability in terms of employment contracts.
- If able to retain flexible workforce- shall lower recruitment costs & improve customer service through more consistent supply of reliable employees.
What are the disadvantages of flexible employment/ flexible contracts?
Harder to recruit & retain sufficient amount of employees.
Whilst good for some- some employees wont like not having sufficient job security (hygiene factor- if not present cause dissatisfaction) & will be uncertainties over pay- if zero hour contracts.
Therefore- high labour turnover that competing firms- could lose most specialised employees to competitors- who offer job security.
Likely to increase businesses employment costs & recruitment costs.
May not have ability to meet sudden surges in demand if employees can choose when work- therefore lose out on sales & revenue.
What are the benefits of full time employees?
Beneficial to a business as they are likely to be more skilled and committed to the long-term success of the business.
Better communication as full-time staff are more likely to be at work at the same time and can speak directly to each other.
Full-time contracts are beneficial to employees as they will receive a higher wage than part-time employees.
Likely to have more training opportunities, and are more likely to gain promotion because they spend more time at work.
Flexible working- benefits to business?
- Greater cost-effectiveness and efficiency, such as savings on overheads when employees work from home.
- More job satisfaction & staff morale.
- Reduced levels of sickness absence.
- Greater continuity of staff- better worklife balance.
- Increased customer satisfaction & loyalty.
- Improved competitiveness- better able to react to changing market conditions- operate 24 hours a day.
- The chance to have extended operating hours.
- Ability to attract a higher level of skills because the business is able to attract and retain a skilled and more diverse workforce. Also, recruitment costs are reduced.
