Employment (Junior Cert Business Studies): Revision Notes
Employment
What is employment?
Employment refers to any work carried out in exchange for payment. This paid work can be undertaken on a full-time or part-time basis, with working hours that may follow a regular pattern (such as 40 hours per week) or vary irregularly depending on the role and industry demands.
When people are employed, the government collects statutory deductions from their wages. These deductions contribute to funding various public services and social supports that benefit the wider community.
Employment can take two main forms:
- Working as an employee for someone else
- Working as a self-employed person for yourself
Employees
An employee is someone who works for another person or organisation in return for payment. Examples include office workers, chefs, and retail assistants. The person or organisation that pays the employee for their work is called an employer.
Key features of being an employee
Being an employee involves receiving regular compensation for work performed. This typically comes in the form of wages or salaries that are paid at set intervals, such as weekly or monthly. Along with this financial payment, employees also have specific rights that protect them in the workplace, as well as responsibilities they must fulfil as part of their role.
Benefits and rewards of employment
Employment offers numerous advantages that can significantly improve quality of life:
Financial security: Employees receive steady income through regular wages or salaries, providing the financial stability needed to cover living expenses and personal goals. Many employers also offer additional benefits-in-kind, such as health insurance coverage or company cars.
Personal fulfilment: Work provides opportunities for recognition and praise when tasks are completed successfully. This creates a sense of personal satisfaction from achieving goals and contributing meaningfully to an organisation's success.
Social connections: Employment creates opportunities to build relationships and develop a sense of belonging within a workplace community. This social aspect helps employees form new friendships and professional networks.
Skill development: The workplace serves as a learning environment where employees can develop new abilities, such as communication skills, technological expertise, or industry-specific knowledge.
Professional growth: Many employment situations offer pathways for career advancement and increased responsibility over time.
Career opportunities for employees
Salaried employment spans across numerous industries and sectors:
- Medical field: Doctors, nurses, pharmacists, surgeons
- Technology sector: Web developers, computer programmers, software engineers, data analysts
- Education: Primary teachers, secondary teachers, school principals, university lecturers
- Professional services: Actuaries, accountants, solicitors, architects
- Business: Human resource managers, marketing consultants, sales representatives, project managers
- Other sectors: Builders, bakers, factory workers, farm managers
Worked Example: Employee Profile
Siobhan works as a financial advisor for Bank of Ireland in Dublin. She handles client portfolios and provides investment guidance, receiving an annual salary of €55,000 for her expertise and responsibilities. This makes Siobhan an employee of the bank.
Self-employment
Self-employment means working for yourself rather than for an employer. Many designers, accountants, and photographers choose to be self-employed, running their own businesses and serving their own clients.
Key features of self-employment
Self-employed individuals take complete responsibility for every aspect of their business operations. Unlike employees, they don't have regulated working hours set by an employer, giving them flexibility in when and how they work. However, this independence comes with financial risks - if the business fails to generate sufficient income or encounters problems, self-employed people may face financial losses.
Benefits and rewards of self-employment
Self-employment offers unique advantages that appeal to many workers:
Independence and control: Self-employed people serve as their own boss, making all important business decisions without needing approval from supervisors or managers.
Personal satisfaction: There's significant fulfilment in building something from scratch and achieving success through your own efforts and vision.
Flexible scheduling: Self-employed individuals can choose their own working hours, creating better work-life balance that suits their personal needs and preferences.
Financial potential: All profits generated by the business belong to the self-employed person, creating opportunities for higher earnings based on business success.
Passion pursuit: Many self-employed people work in areas they're genuinely passionate about, leading to greater job satisfaction.
Career opportunities in self-employment
Common self-employed careers include:
- Engineers
- Accountants
- Builders
- Artists
- Designers (including graphic, interior, and fashion specialists)
Worked Example: Self-Employed Profile
Seamus Murphy established Celtic Crafts, a furniture-making business in County Cork that specialises in traditional Irish wooden furniture. Though he works long hours, Seamus enjoys the satisfaction of running his own company and making key business decisions independently. This makes Seamus self-employed.
Benefits of employment for society
Employment creates positive effects that extend far beyond individual workers:
Individual benefits
Workers earn income through wages, salaries, or commission, enabling them to purchase goods and services to meet their needs and desires. Employment also provides personal satisfaction through meaningful work and potential career advancement opportunities for dedicated workers.
Organisational benefits
Businesses benefit from having skilled employees who help deliver services and produce goods effectively, which increases company profits. A highly skilled and educated workforce can boost productivity levels and drive sales growth.
When businesses have access to talented employees, they can innovate more effectively, provide better customer service, and compete more successfully in their markets.
Societal benefits
The government receives revenue through income taxes such as PAYE, PRSI, and USC collected from employed workers. Additional revenue comes from taxes on business profits, including corporation tax and self-assessment income tax. When more people are employed, government expenditure on social welfare payments decreases, creating savings that can be invested in other public services and infrastructure improvements.
Key Points to Remember:
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Employment means working in exchange for payment - whether as an employee for someone else or as a self-employed person running your own business
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Employees receive regular wages/salaries and benefits while having specific workplace rights and responsibilities
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Self-employed people have complete control over their business but also bear full responsibility for success and financial risks
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Employment benefits three key groups: individuals (through income and satisfaction), organisations (through profits and skilled workers), and society (through tax revenue and reduced welfare costs)
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Career opportunities exist in both employment types across medical, technology, education, professional services, business, and many other sectors