employing people

• 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

• 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

Temporary Staff

-Poor motivation

-Greater Flexibility

Permanent Staff

-Loyal

-Motivated

-Big investment

Full-Time

positives

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

Negatives

• Expensive
• Less Flexibility
• Is there enough work?

Part-Time

positives

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

negatives

• harder to train and communicate with

Consultants and Advisors

Benefits

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

Negatives

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

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?