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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 and selection costs
Answer
The decision of staff to leave due to poor working conditions can significantly increase Aldi's recruitment and selection costs. First, unhappy staff are less motivated and productive, which can lead to higher operational demands. This might result in the need for more recruitment efforts to fill these gaps, thereby increasing costs through advertising for new positions such as cashiers or store managers.
Furthermore, if a significant turnover occurs, Aldi might face a series of expenses related to onboarding and training new employees. These processes are usually costly and time-consuming, which could strain Aldi's resources.
In addition, Aldi's reputation as an employer could be negatively impacted if staff leave frequently. This might necessitate more aggressive recruitment strategies to attract candidates, perhaps including higher wages or additional incentives, further raising recruitment costs.
Overall, the need to replace staff who leave can lead to a cycle of increased hiring expenses, which Aldi would need to manage to maintain operational efficiency.
Step 2
Potential for community recruitment
Answer
On the flip side, Aldi may find opportunities in the community if their staff turnover is high. There might be sufficient potential workers willing to replace those who leave, especially if the local workforce is relatively large. This could mitigate some of the costs associated with recruitment.
Moreover, Aldi could potentially attract individuals seeking flexible work hours or those willing to work under pressure. This aspect may help reduce some recruitment costs, as fewer resources might be necessary to fill vacancies from a larger talent pool.
Step 3
Long-term implications
Answer
In the long run, if Aldi continues facing significant turnover due to poor working conditions, it may need to reconsider its employee engagement strategies. Addressing working conditions and employee satisfaction could lead to reduced turnover and recruitment costs over time. Engaging in measures like improving workplace culture or offering better benefits may result in storing long-lasting employment relationships, ultimately lowering recruitment expenses in the future. Thus, the initial recruitment costs due to turnover can indeed lead to larger, sustained investments in employee welfare to stabilize the workforce.