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Organisation Structure and Employees ยป Human Resources - Employment Issues and Relations

What you'll learn this session

Study time: 30 minutes

  • Understand key employment issues businesses face with their workforce
  • Learn about different types of employment contracts and working arrangements
  • Explore how businesses recruit, train and motivate employees
  • Discover methods for resolving workplace conflicts and disputes
  • Examine the role of trade unions in employee relations
  • Analyse real business cases involving HR challenges

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Introduction to Human Resources - Employment Issues and Relations

Human Resources (HR) is all about managing the people who work for a business. Think of HR as the department that looks after employees from the moment they apply for a job until they leave the company. Employment issues and relations cover the challenges businesses face when dealing with their workforce and how they maintain good relationships with employees.

Every business, whether it's a small corner shop or a massive corporation like Tesco, needs to handle employment matters properly. Poor employee relations can lead to strikes, high staff turnover and even legal problems that cost businesses thousands of pounds.

Key Definitions:

  • Human Resources (HR): The department responsible for managing employees and employment-related issues.
  • Employment Contract: A legal agreement between employer and employee outlining terms and conditions of work.
  • Industrial Relations: The relationship between employers, employees and trade unions.
  • Trade Union: An organisation that represents workers' interests and negotiates with employers.

💼 Types of Employment Contracts

Full-time contracts: Usually 35-40 hours per week with full benefits like holiday pay and sick leave.

Part-time contracts: Fewer hours, often flexible, popular with students and parents.

Temporary contracts: Fixed-term employment for specific projects or busy periods.

Zero-hours contracts: No guaranteed hours, employees called in when needed.

Key Employment Issues Businesses Face

Modern businesses deal with various employment challenges that can affect productivity, costs and reputation. Understanding these issues helps explain why HR departments are so important.

Recruitment and Selection Challenges

Finding the right people for jobs isn't always easy. Businesses must advertise positions, interview candidates and check references whilst following legal requirements about discrimination. The process costs money and takes time, especially for skilled positions.

🔎 Recruitment Methods

Internal promotion, job centres, recruitment agencies, online job boards, social media advertising

Selection Process

Application forms, CV screening, interviews, skills tests, reference checks, background verification

Legal Requirements

Equal opportunities, no discrimination based on age, gender, race, religion, or disability

Case Study Focus: McDonald's Recruitment

McDonald's receives over 1 million job applications annually in the UK. They use digital recruitment tools and group interviews to handle high volumes efficiently. Their "McJobs" programme specifically targets young people, offering flexible hours and training opportunities. This approach helps them maintain staffing levels in a high-turnover industry.

Training and Development Issues

Once employees are hired, businesses must train them properly. Poor training leads to mistakes, accidents and unhappy customers. However, training costs money and takes employees away from productive work.

Types of Training Programmes

Businesses use different training methods depending on their needs, budget and the skills required. The choice affects both costs and effectiveness.

🏫 On-the-job Training

Learning whilst doing the actual work, often with an experienced colleague. Cheaper but can slow down production initially. Examples include shadowing, mentoring and learning by doing.

🎓 Off-the-job Training

Training away from the workplace, such as courses, conferences, or workshops. More expensive but often more thorough and professional.

Motivation and Retention Challenges

Keeping good employees happy and motivated is crucial for business success. High staff turnover costs money through recruitment, training and lost productivity. Businesses use various methods to motivate workers and encourage them to stay.

Motivation Techniques

Different employees are motivated by different things. Smart businesses use a mix of financial and non-financial incentives to keep their workforce engaged and productive.

💰 Financial Motivation

Pay rises, bonuses, commission, profit-sharing, share options, overtime payments

🏆 Recognition

Employee of the month awards, public praise, certificates, promotion opportunities

Work Environment

Flexible hours, remote working, better facilities, team building activities, training opportunities

Case Study Focus: Google's Employee Benefits

Google is famous for its employee perks including free meals, on-site gyms, massage services and even nap pods. They also offer "20% time" where employees can spend one day per week on personal projects. This approach helps Google attract top talent and maintain low staff turnover, though it's expensive to implement.

Workplace Conflicts and Dispute Resolution

Even in the best workplaces, conflicts arise between employees, or between workers and management. How businesses handle these disputes affects morale, productivity and legal costs.

Common Workplace Disputes

Understanding typical workplace conflicts helps businesses prevent problems and resolve issues quickly when they occur.

Individual Disputes

Disagreements about pay, working conditions, disciplinary actions, discrimination claims, or unfair dismissal. These often require formal procedures and may involve employment tribunals.

👥 Collective Disputes

Conflicts involving groups of workers, often represented by trade unions. Common issues include pay negotiations, working hours, redundancies, or changes to working conditions.

Trade Unions and Industrial Relations

Trade unions represent workers' interests and negotiate with employers on behalf of their members. The relationship between businesses and unions significantly affects workplace harmony and business operations.

Role of Trade Unions

Unions serve multiple functions in the workplace, from protecting individual workers to negotiating company-wide agreements. Their influence varies greatly between different industries and companies.

Collective Bargaining

Negotiating pay, working conditions and benefits on behalf of all union members

🛡 Worker Protection

Representing individual members in disputes and ensuring workplace safety standards

📣 Industrial Action

Organising strikes, work-to-rule, or other actions when negotiations fail

Case Study Focus: British Airways vs. Cabin Crew Union

In 2010-2011, British Airways faced a series of strikes by cabin crew over pay cuts and working conditions. The dispute lasted 18 months, cost BA millions in lost revenue and damaged customer relationships. Eventually resolved through negotiations, but highlighted how industrial disputes can severely impact business operations and reputation.

Legal Framework and Employment Law

Businesses must follow numerous employment laws that protect workers' rights. Breaking these laws can result in expensive tribunal cases, compensation payments and damaged reputation.

Key Employment Rights

UK employment law provides various protections for workers and businesses must ensure they comply with all relevant legislation.

Basic Rights

Minimum wage, maximum working hours, paid holidays, sick pay, maternity/paternity leave, protection against discrimination and unfair dismissal.

🛠 Health and Safety

Employers must provide safe working environments, proper training, protective equipment and follow health and safety regulations to prevent workplace accidents.

Modern HR Challenges

Today's businesses face new employment challenges that didn't exist 20 years ago. Technology, changing work patterns and different employee expectations create fresh HR issues.

Contemporary Issues

Modern workplaces must adapt to changing employee needs and technological advances whilst maintaining productivity and legal compliance.

💻 Remote Working

Managing employees who work from home, ensuring productivity and maintaining team communication

Work-Life Balance

Flexible hours, job sharing, compressed working weeks to help employees balance personal and professional lives

🌐 Diversity and Inclusion

Creating inclusive workplaces that value different backgrounds, ages, abilities and perspectives

Case Study Focus: Flexible Working at John Lewis

John Lewis introduced flexible working policies allowing employees to adjust their hours and work locations. This included compressed working weeks and remote working options for suitable roles. The policy improved employee satisfaction and reduced turnover, though required investment in technology and management training to ensure effective implementation.

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