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Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Question 1
Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover. Health and fitness club... show full transcript
Worked Solution & Example Answer:Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Step 1
Financial rewards
Answer
Offering financial rewards, such as paying at least the Living Wage, can significantly improve employee retention. Employees are more likely to stay if their basic living needs are met. Higher remuneration can also motivate employees to perform better, reducing turnover. Personal trainers, usually on commissions, could benefit from this model by having assured income that encourages them to stay longer. Additionally, if a club like Fitness First offers pensions, this could foster a sense of security among employees.
Step 2
Non-financial techniques
Answer
Non-financial techniques can play a crucial role in employee retention. For instance, creating incentives based on personal development, such as additional training or job rotation, can boost job satisfaction. Engaging employees in decision-making may increase their sense of belonging and commitment to the health club. Further, recognizing achievements through awards can enhance morale and encourage loyalty. These strategies help in building a positive workplace culture which is essential for retaining employees.
Step 3
Recommendation
Answer
The recommendation for Fitness First largely depends on the type of employees they wish to retain. If most employees are younger and more transient, financial rewards may lead to immediate results in retention. Conversely, if the workforce is more experienced, focusing on non-financial techniques may yield greater long-term loyalty. A balanced approach incorporating both strategies may be the most effective way to reduce labour turnover.