IGCSE, A Level Business Student Forum

Q4 Analyse the advantages of high labour turnover. [5]

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Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[KN]: less skilled and less productive workers might leave
[AN]: thus, after the recruitment the new employees could have more potential
[AN+]: hence, improving the effectiveness of the business

[KN]: new ideas and innovations into the products by the new employees
[AN]: could help to create a USP for the organization
[AN+]: creating brand image and gaining competitive advantage

[KN]High labour turnover can bring a continuous stream of new employees with diverse perspectives, experiences, and skills.
[AN]This can inject new and innovative ideas into the organization.
[AN+]Resulting in an increase in creativity and adaptability of the business.

[KN]New employees may also bring knowledge and experiences from previous roles or industries.
[AN]This can be valuable for businesses seeking to stay updated with the latest trends and technology.
[AN+]Resulting in a greater customer base and loyalty.

KN: More Fresh and innovative Ideas brought into business
AN: These can help businesses adapt to market changes and customer preferences
AN+: Thus giving a competitive edge to the business as they are ahead of their competitors

KN: New employees may have more experiences
AN: In this way they will be able to analyze better or efficient ways of working
AN+: Less wastage of time and resources done

[KN]: New employees bring new skills, ideas, and contacts with them.
[AN]: Less cost on training the employees.
[AN+]: product efficiency.
[KN]: the workers you want to get rid of will most probably leave you themselves.
[AN]: no conflict between owner and employee because employees will be leaving because of their own choice.
[AN+]: no time wastage in long process of firing an employee.

[KN] New Ideas and practices brought into the organization. [AN] This means that the current workers leaving the business increases chances of new skills and techniques to be introduced into the business as the leaving staff may need to be replaced with new ones. [AN+] This may provide the business an opportunity for development of current workforce as they may learn and adapt the new techniques brought into the business by new workers. This may also help to grow their self esteem and motivation as the tasks get more challenging and interesting than the tasks that they are used to performing on the daily basis.
[KN] The business is less open to allegations of unfair dismissal. [AN] As the current staff may leave by themselves, it may help the business to plan to reduce employee numbers which would have been more difficult if the business had to make them redundant. [AN+] As the unwanted staff may leave themselves and there may not be any need to replace them, the business is protected from any allegations of unfair dismissal. This may reduce the workload in the HRM department and save time wastage leading to greater productivity.

[KN] Creates vacancy for hiring of new employees
[AN] More talented workforce with new ideas and skills will be hired
[AN+] New ideas lead to innovation which can become USP of the business helping it gain competitor advantage
[KN] Lazy and incompetent will be eliminated
[AN] Business will be safe from claims of unfair dismissal
[AN+] New and competent employees will be hired which benefit the business in the long term

Kn: brings in fresh perspectives
An: when an employee resigns hiring a new employee means your organization is gaining new set of skills and new ideas
An+ existing employees can benefit from different skills and new employees can learn the culture of the organization

Kn: allows business to track and improve their performance levels
An: when an employee leaves business can see if it was a top performer or if the employee had low performance
An+ this allows the business to improve itself or if low performers are leaving a room for high potential workers is being created

Kn: high labour turnover will allow new ideas to circulate into the business
An: new employees would be motivated and have latest knowledge about market and consumer wants and allow the business to quickly adapt to changing market conditions
An: this would enable the business to satisfy its customers and gain trust thus resulting in higher revenue

Kn: it would also bring in people with diverse skills into the business
An: this would allow the business to expand in different sectors and train the existing employees
An: it would bring exclusivity into the business and give it a “brand” image allowing the business to grow

KN: New employees will bring new techniques, ideas, and solutions.
AN: Increase in productivity.
AN+: higher revenues.

[KN] Labour turnover measure the rate at which employees are leaving an organisation
[AN]less productive staff might leave and thr new employees that join will bring more innovative ideas
[AN+] the business will have a fresh perspective increasing overall productivity which may result in higher profit

kn: low-skilled and less-productive staff might be leaving and could be replaced with more carefully selected workers.
an: if the business hires more efficient employees, they can complete their assignments in less time, reducing operational costs.
an+ reduction in costs will lead to higher profitability

kn: new ideas brought in by new people
an: when new employees join the business, they bring a new perspective, leading to innovation and better decision making.
an+: this gives the business a competitive advantage

Kn: It will become more easy to fire less output generating employees.
An: Now new workers will be hired which are well trained and skilled according to the work.
An+: So, the overall efficiency of the business will increase.

Kn: New employees will also bring new stretigies for the business.
An: They might be here from different organisations which will make them think from different perspectives, they will have more creative ideas and ways to improve the productivity.
An+: This will make business take right decide at the right time.

[KN]new employee would bring new ideas
[AN]which will help improve the product quality
[AN+]thus increasing sales

[KN]it will help remove those employee who are less productive
[AN]thus saving money of the business
[AN+]which company can use to expand its business

(Kn) elimination of poor fits
(An) anyone who was previously incapable of bringing the organisation any real benefit is eliminated.
(An+) this thus saves the business time and hence money.

(Kn) new ideas
(An) with so many people entering and leaving an organisation there is no lack of ideas in the company.
(An+) this allows the business to foster innovation which can be included in its products and services generating a usp hence a benefit.