The size and type of business determine what type of human resources that will be more beneficial. From temporary workers to permanent staff, these are commonly used types of employees. Increasingly becoming popular is part-time employment.
The growth of different working trends has seen the increase in usage of consultants and advisers. With the expertise and knowledge they bring on board, it can be highly rewarding to a business.
The are benefits of each type of employee structure. A successful business knows the risks involved in employing workers and uses the type that maximises its advantage. Therefore, it needs to identify the risk factors and drawbacks of the respective types and determine the best one for its business.
Employee Types in Small Businesses
Permanent employment has been the major type of employment used to secure candidates for job positions. It offers better working conditions and stability to the employee. However, it does not give employers flexibility to increase or decrease workload as is needed because of the nature of the contract between the employee and employer. The employer would need to notify the employee in advance before the termination of the contract, similarly the employee generally needs to give four weeks notice if they intend to leave.
Temporary staff, this is very flexible to both the employee and employer. The staff are often supplied by an agency that the employer liaises with and pays for the services of the temporary worker. The contract of employment states the duration of the contract. The payment is usually weekly and is made to the agency, they can pay the individuals after taking a percentage for themselves.
The objective of most temporary workers is to get a permanent job, however, they gain experience, skills among other benefits from working temporarily often in a range of industries.
The business can reduce or increase its staff requirements easily and it can terminate contracts of employments without as much hassle as with the permanent employees.
There are laws which have been enacted recently to enhance the rights of temporary workers and to improve their working conditions.
Full time staff and Part time Staff
Full time staff, these are staff that work a full standard working week throughout the year except for their holiday entitlement periods. In this type of employment the contract needs to state the holiday entitlement, number of requires hours for work, overtime availability and the amount payable. In many ways this category is very similar to permanent staff.
Part time staff, this offers the benefits of flexible working patterns to fit into the schedule of the employees. The hours are less than full-time. Equal rights accrue to the part-time worker as it does to the full-time worker. Women make up the majority of the part-time workforce in the United Kingdom, accounting for around 60% of the total.
Usage of Advisors and Consultants
Businesses employ the services of advisors and consultants who offer specialist services on key issues pertaining to the business. For these services to be sought, the business would have realised its lack of such value adding skills internally and among its employers, therefore, it has to find the skills externally.
The areas of specialisation which the consultants cover include: Financial and management controls, Information technology, Quality Management, Human Resources, Marketing, Manufacturing and business services.
In reality, however, any sector of business will likely have an employment agency supplying it. This would be the definition of a niche market than someone would have filled.
The role of the consultant and advisor needs to be clearly defined from the commencement of employment. As the consultants targets specific areas of the business, there will need to be a document stating the targets and objectives of development for the specific areas. Consultants are taken on for both long and short periods, with the free decided and the reference terms agreed.
Consultants need to work in unison with the business employees to effectively accomplish the goals, objectives and plans of the business.
Directly employing people can be hugely beneficial for a business but can also have major drawbacks. These need to be considered in full before any hiring decisions are finalised.
The limitations of employing people include: Money costs - the recruitment process cost money and time. Administrative cost - including tax related matters. Hiring inexperiences candidates. Great deal of paperwork involved - including keeping track of staff, holiday entitlements, sick leave amongst others.
The limitations of advisors and consultants include: Lack of adaptability of proposal to suit the business. Failure to implement favourable long term change. Lack of original ideas and focus. Lack of enthusiasm for the business. It can be expensive.