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Page 1

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Employing People

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Specification
Employing People The types of employees should
· types of employees used in include: temporary, permanent, full-
small businesses time and part-time. Candidates
· using consultants and should be aware of the reasons,
advisors. drawbacks and difficulties of
employing people and/or using
consultants and advisors.

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Main Employment
Options
Employment Definition & Overview
options


Full-time Permanently employed in the business; usually working over 30
hours per week. Full package of benefits & employment rights
protected by law


Part-time Works less than 30 hours per week; employed under a
permanent contract of employment. Package of benefits likely…

Page 4

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Permanent Employment
Employee is given an open-ended contract and is employed on an indefinite basis.
The employee can terminate the contract by giving notice as stated in his/her
contract of employment. Or the contract can be ended either by resigning,
retiring, by being made redundant or being sacked.



Advantages Disadvantages…

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Temporary Employment
Staff hired on short-term contracts (e.g. by week, month)
Often have fewer benefits than permanent staff
Particularly useful for a business with seasonal peaks and troughs
Useful for resourcing specific projects (e.g. website development) or filling gaps
caused by illness or other absence
Not directly employed by the…

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Full-Time Employment
Most significant part of total employment in the UK
Full-time means fully-committed to the business (doesn't work for anyone else)
A big commitment for a start-up
Contract of employment sets out rights
The start-up needs to ensure that there is enough work for full-time employees ­
each new…

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Part Time Employment
Part-time workers must have the same benefits (pro-rata) as full time staff
Various methods of part-time ­ including those described as "flexible working" ­
term time workers, zero hour contracts, job share
Reduced risk for a start-up (lower cost)
Opens up a wider pool of potential recruits…

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Consultants and Advisers
These are businesses or individuals who provide professional advice or services for
a fee

Some skills are best provided by specialists: e.g.
­ Legal
­ Accounting & payroll
­ IT systems

Generally paid per project or by the hour/day

Some funded by government (e.g. BusinessLink)

Think of…

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Exam Tips
For an entrepreneur, employing the first few people in a new business is fraught
with risk. Make the wrong choices or pay someone too much, and the start-up's
overheads soon increase significantly. The use of part-time or temporary staff is a
popular way of handling increased workload.

On…

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