Employing people

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Employing people
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Aims

• To be aware of the different employment
  opportunities in the UK
• To be able to explain the benefits and drawbacks
  of different employment options for businesses

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What this topic is all about

• At some stage, a start-up entrepreneur will need
  to consider taking on staff
• Staff costs can quickly become a significant part
  of the fixed costs of a business
• Employing the right staff can help a start-up
  grow more quickly and free the entrepreneur to do
  more important tasks

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• What choices should
• an entrepreneur consider
• when it comes to
• employing staff?

Part time
Full time
Temporary
Advisory
Consultant
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Main employment options
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Some statistics 1st
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of People in part time work 1984 to 2004
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Distribution of occupations among employees by
gender, 2005.
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Some statistics UK 2007

• Over 29m people in employment
• 21.7m in full time employment
• 7.45m in part time employment
• Full time workers
• 14m are men,
• 7.7 m are female
• Part time workers
• 1.75m are men
• 5.7m are female
• Temporary workers are approx 1.5m

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Quick Questions

• Using the information, what do you think is the
  importance of full and part time employment in
  the UK?
• How has the importance changed over time?

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Employee Jobs by industry
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Quick Questions

• Which industrys belong to the
• Primary Sector?
• Secondary Sector?
• Tertiary Sector?
• Describe the changes in employment between 1978
  and 2005.

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Employee Jobs by industry
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Key issues
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Employing people in context

• Most small businesses are one-man bands they
  dont employ anyone else!
• 3.3 million businesses in the UK have no staff
• Start-up entrepreneurs often multi-task in the
  early days since the business cannot afford other
  staff
• Choosing a first employee is one of the most
  difficult (and risky) tasks faced by an
  entrepreneur

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Full-time employment (1)

• Full-time means fully-committed to the business
  (doesnt 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 employee
  increases the break-even output

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Full-time employment (2)
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Part-time employment (1)

• 25 of people work part-time in the UK
• Various methods of part-time including those
  described as flexible working
• Reduced risk for a start-up (lower cost)
• Opens up a wider pool of potential recruits (e.g.
  women with child care responsibilities)

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Part-time employment (2)
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Temporary employment (1)

• Staff hired on short-term contracts (e.g. by
  week, month)
• Useful for resourcing specific projects (e.g.
  website development) or filling gaps caused by
  illness or other absence
• Not directly employed by the start-up temps
  are normally employed by an agency

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Temporary employment (2)
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Consultants advisers (1)

• 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 them as specialist suppliers

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Consultants advisers (2)
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Flexible working

• Attractive option for many start-ups
• Flexible working covers any kind of flexibility
  in terms of time (e.g. part-time work, shift
  work) and location (e.g. home-working) and
  includes the following
• Part-time working
• Flexi-time - employees choose the hours they work
  outside a standard set of hours set by the
  employer
• Job sharing - two workers share a full-time job
  (i.e. two part-timers)
• Term time working - normal permanent contract,
  but the employee can take unpaid time off in
  school holidays
• Zero-hours contracts - workers work only the
  hours they are needed

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DVD _Slivers of Time
You will be set some Qs to answer after watching
this!

• An alternative way of hiring from the local
  community

Working lunch series 14 1 Flexible working good
examples using a recruitment agency. B2B example
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Some questions

• Who are the sellers of slivers of time?
• Give some examples of types of people who are
  sellers.
• Who are the buyers of slivers of time?
• What types of businesses would buy staff from
  this agency?
• What are the benefits to the businesses for
  hiring this type of workers?
• What might be the disadvantages of using this
  system for a small company?
• What is the importance of technology for Slivers
  of Time Ltd?

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Your work.

• You need to be able to describe the benefits and
  drawbacks of different type of employment

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Your task

• To create a leaflet for local entrepreneurs
  giving advice on what options they have when
  employing staff

• Must include
• Explanation of
• Full time
• Part time
• Temporary
• Consultants
• Advisors
• Flexible labour
• A description of the pros and cons of each
  employment option

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Homework

• Catch up on work owed
• Waldek case study on Gym location.

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Lesson 2

• Cont with poster

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Starters

• Identify three possible reasons why a business
  might hire temporary workers.
• Identify three responsibilities that a business
  has when recruiting permanent staff.
• Why is the cost of hiring workers not simply the
  wages that the job commands?
• What is the difference between a consultant and
  an advisor?

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DVD

• Working lunch series 6 6 Flexible working
• starts at 1737 mins

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Is it better to hire a full timer or a part timer
for a new business?
Use a whiteboard

• Brainstorm the issues involved

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Continue with poster work

• To be completed before the end of this lesson!

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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 the other hand there is a temptation for a
  small business owner to want to do everything
  himself/herself. This can restrict the growth
  potential of the business. A successful start-up
  will soon need people with a variety of skills
  and experience.

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Employing people