Essay on Employing People

1456 Words Oct 21st, 2013 6 Pages
- Reasons for employing people
Entrepreneurs setting up a new business need to employ people for a number of reasons:
- Only in the smallest business does the owner have the capacity to carry out all the tasks necessary to provide the finished product or service. In most business, it is necessary to employ people. As a business grows, it needs to ensure that it can meet demand by increasing the number of staff it employs.
- An entrepreneur setting up a new business will not often have all the skills required to run a business. The same applies to a partnership, or even a limited company. Most businesses require specialist expertise in relation to the production of their goods or services, the marketing of them, and the management of
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- Temporary or fixed-term contract employees. These have an employment contract with the business, but it is for a predetermined time or until a specific task has been completed.
- Employees on zero-hours contracts. Such contracts allow a business to have people on-call to work whenever necessary and mutually convenient. Generally, a business is not obliged to offer work, nor is there a responsibility for the workers to accept any work.
- Employment agency staff. These workers have contracts with the employment agency that supplies them, but the business still has certain legal responsibilities towards its agency workers.
- Self-employed freelancers, consultants and contractors. These give a business the minimum of employer obligations.

Permanent or temporary employees
An important decision for a new business is whether staff should be permanent or temporary. Staff who are required throughout the year and whose services are necessary to the day-to-day running of the business are likely to be permanent employees. This includes management, such as the sales or operational managers, factor operatives and sales assistants, and administrative staff. Permanent staff tend to be more loyal to the business and more motivated than temporary staff.
Where additional staff are needed – for example, to meet the seasonal demand for goods or services, or to complete a particular task or cover a particular event – they are more likely to be employed on

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