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Assess the likely impact on Aldi’s recruitment and selection costs if staff choose to leave due to poor working conditions. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Question 1
Assess the likely impact on Aldi’s recruitment and selection costs if staff choose to leave due to poor working conditions.
Worked Solution & Example Answer:Assess the likely impact on Aldi’s recruitment and selection costs if staff choose to leave due to poor working conditions. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 1
Step 1
Impact on Recruitment Costs
Answer
When staff leave due to poor working conditions, Aldi may face increased recruitment costs. This includes expenses related to advertising new positions, conducting interviews, and training new employees. A high turnover rate necessitates ongoing recruitment efforts, which can strain resources and financial budgets.
Step 2
Impact on Selection Costs
Answer
Selection costs may also rise as Aldi may need to spend more time and effort to find suitable candidates who can fit into their requirements, especially if many employees are dissatisfied. The hiring process may require more extensive vetting procedures to ensure that new hires are willing to cope with the demanding conditions.
Step 3
Potential Counterbalance Effects
Answer
Despite increased costs, Aldi might benefit from having access to a larger pool of potential recruits if staff leave frequently. This can enable Aldi to hire individuals who may be more skilled or more willing to tolerate the working conditions. However, having a high turnover could lead to a cycle of ongoing recruitment challenges.
Step 4
Conclusion
Answer
Overall, while Aldi faces potential increases in recruitment and selection costs due to staff turnover, the effects could be neutralized if they can successfully attract and retain the right candidates from a broader talent pool. It's vital for Aldi to improve working conditions to reduce turnover rates, which ultimately affects their operational efficiency and cost management.