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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 to attract potential candidates. Unhappy staff who leave create a gap that necessitates hiring new employees, which may require Aldi to advertise vacancies more prominently to fill these roles effectively.
Additionally, Aldi may need to offer competitive salaries or benefits to attract skilled candidates, especially if the existing workforce is unhappy, thus further escalating costs.
Step 2
Impact on Selection Costs
Answer
Increased recruitment often leads to higher selection costs as Aldi may need to implement thorough screening processes to ensure that new hires are a good fit and can work under the challenging conditions reported by previous staff. This process may involve more interviews, assessments, and background checks, which require significant time and resources.
Furthermore, if turnover rates increase due to unsatisfactory working conditions, Aldi might find themselves continuously hiring and selecting staff, which compounds these costs.
Step 3
Consideration of Skill Levels
Answer
Aldi's workforce may comprise relatively low-skilled employees. If many leave, the available talent pool in the community might be sufficient to fill these vacancies. However, the quality of replacements could be a concern, and Aldi may not be able to easily find candidates who can meet their operational needs, potentially leading to further inefficiencies and costs.
Step 4
Long-term Effects
Answer
The long-term impact of staff leaving can cause a shift in Aldi's employee retention strategy. If working conditions remain poor, Aldi might need to invest in better training for new hires to reduce turnover costs. This investment can initially be high, but it may pay off in the long run by fostering a more skilled and stable workforce.
Additionally, a consistent cycle of recruitment and selection can damage Aldi's reputation as an employer, attracting fewer applicants and necessitating even higher expenditure on recruitment in the future.