Analyse the consequences to Dandy Longlegs of recruiting new sales staff on flexible contracts (12 marks)

Sales staff are very important for the business revenue, as they are going to provide the customer-facing experience and will in many cases be the difference between a sale being made or not. By placing staff on flexible contracts, their motivation might be lessened as they will be focused on finding another job and will not feel a connection to the business. However, this will also provide the business with greater flexibility and the option to quickly and legally remove under-performing staff, as well as the flexibility to let people go without making redundancies.

As the business is currently suffering from increasing customer complaints, intentionally introducing staff who will be less motivated may further harm the business’s reputation. Whilst the business may only have received 67 complaints this year, it is important to note that not all unsatisfied customers will complain, so each complaint likely represents a poor experience from many customers. For this reason, customer satisfaction should be made a key focus for Dandy Longlegs.

As staff require training and have recruitment costs, a high rate of turnover (which will be exacerbated by temporary contracts) will be costly for the business in terms of efficiency and apparent competency. Instead, it might make sense for the business to focus on increasing retention of staff and reducing absenteeism. This could include initiatives such as offering more flexible hours to staff or providing higher pay/benefits.

To what extent do you agree with Susan’s proposal to restructure the business? Justify your view. (20 marks)

Susan’s proposal to reduce the bloat in management is likely a good idea. Whilst managers are definitely required in retail stores, they are not needed in large numbers and could likely straddle the responsibilities of several departments. This would be an effective cost-saving manoeuvre which would make it easier for the business to redirect resources towards