03:Identify and explain two effects on Steppa of a high number of workers leaving the business each year[4]

[Dania]

Steppa is a shoe manufacturer in the private sector. Steppa has 200 employees who all receive a high hourly wage rate. The Human Resources Director said: ‘We use a democratic leadership style. Employees are an important stakeholder group. Happy workers are good for business. Revenue increased by 10% last year.The director cannot understand why a high number of workers leave the business each year. She is looking at other non-financial methods to motivate employees.

03:Identify and explain two effects on Steppa of a high number of workers leaving the business each year[4]

Possible kN Points:
>Additional training costs.
>Additional awarded for identifying recruitment costs.
>Time taken as training and to recruit new employees.
>Damage to reputation OR harder to costs’ can only be recruit.
>Efficiency
>New employees can provide new ideas.