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Unit 8: HR in Operations

An extra employee may generate enough new sales to more than compensate the salary of the Notes
employee. The additional help could give you a chance to produce more products or serve more
customers efficiently. If the added business does not outweigh the minimum salary that you
would have to pay, then consider other alternatives to hiring a permanent employee. There are
many staffing options available and each has some pros and cons.

8.4.1 Staffing Options

Full-time Employees: A person who works a set number of hours and generally receives benefits
like health, dental and life insurance along with a standard salary is considered full-time. Having
someone around full-time can provide a peace of mind knowing someone is minding the store
even when you can’t be there. There are also many labour laws which govern the full-time
worker.
Part-time Employees: These workers may offer more flexibility in scheduling and cost less than
full-time employees, but you may spend extra time in training more people and if they have
jobs elsewhere, worker loyalty may be compromised.
Temporary Employees: Staffing agencies usually charge for the convenience of providing full
service, as they handle the payroll administration and fringe benefits. However, temporary
help may be useful for the short-term projects such as the busy holiday selling season.
Independent Contractors: Contractors usually provide work on a project-by-project basis where
specialized training or certain skills are required. Fees for work performed are paid based on
results and negotiated in advance. Be sure to have a written contract in place before hiring
independent contractors. You should also be aware of the industry guidelines which determine
a workers independent contractor status.

Once your business becomes successful, you will obviously need help on a temporary or
permanent basis. Good employees can be a business’s biggest asset but the legal and accounting
concerns that come with hiring can almost make it seem having employees is more trouble than
it’s worth. Be sure you understand all the responsibilities before recruiting and hiring.

Staffing Incentives for Retailers: In order to provide the “above and beyond” type of customer
service a retail store should deliver to be successful, it must begin by creating happy employees.
Retailers that develop long-term incentives, perks, and rewards for its staff often see benefits
like less employee turn-over and better customer service. A combination of all of these can lead
to an increase in sales.

Lab Exercise Go to website http://retail.about.com/od/staffingyourstore/Staffing_Your_
Retail_Store.htm and collect information on retail careers.

Motivational speakers, extra staff development and monetary incentives like paid health coverage
are typical for corporations, but what about retailers? What perks can a brick and mortar retailer
offer employees?

Self Assessment

State whether the following statements are true or false:
10. A person who works a set number of hours and generally receives benefits like health,
dental and life insurance along with a standard salary is considered full-time.

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