employing people

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  • Created by: amy
  • Created on: 19-05-13 12:11

Key Terms

  • FULL-TIME- the employee works the full numbers of hours defined by their employer
  • PART-TIME- the employee works a designated percentage of the full-time hours available
  • PERMANENT EMPLOYEE- staff who are required throughout the year and who are involved in the daily running of the business. They work on a full or part-time basis and have an open-ended contract.
  • TEMPORARY EMPLOYEE- staff with a fixed term contract, usually for the completion of a particular task or to cover additional seasonal demand.
  • ZERO-HOUR CONTRACT- staff who can be called upon to work when needed but for whom there is no formal obligation or work from the company.
  • JOB SHARING- where 2 or more people share the pay, benefits and responsibilities of a full-time job in proportion to the hours that they work.
  • EXTERNAL CONSULTANT- external staff with specific skills hired by the firm for the completion of a particular task e.g. accountant
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Reasons for Employing People

  • To allow the business to grow
  • To gain new skills in the business
  • To increase levels of production
  • To meet peaks in troughs in demand
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Permanent and Temporary Employees

Temporary Staff

-Poor motivation

-Greater Flexibility



Permanent Staff



-Big investment

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full time employees



  • Maximise output from employee
  • Know the culture better
  • Easier to train


  • Expensive
  • Less Flexibility
  • Is there enough work?
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part time



  • lower cost for small firms
  • wider pool of recruits  e.g. women with children
  • more flexible


  • harder to train and communicate with
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Consultants and Advisors

Consultants and Advisors


  • specialist skills
  • cheaper than having to employ yourself
  • use as and when required


  • short-term expense
  • might not know the business
  • lack of loyalty
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Drawbacks of Employing People

Drawbacks of Employing People include:

  • Added Costs- as an employer you now have to register as such with HMRC and work out the National Insurance and PAYE contributions that have to be made to the treasury.
  • Employment Legislation- you are now directly responsible for the health & safety of your employee(s),  and you must also abide by other laws such as Equal Pay Act, Sex Driscrimination, Working Hours Directive, Minimum Wage etc.
  • Managing Staff- you need the skills to allow you to manage other staff.
  • Employee Absence- what happens if a staff member is off sick? can you still meet demand?
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This resource provides definitions of the key terms in employment and the advantages and disadvantages of each type of employment.

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