Analyse two advantages to SF of using flexible employment contracts.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. Flexible contracts include making use of temporary, part-time and zero-hour contracts rather than permanent full-time contracts.
2. Temporary contracts offered for fixed period.
3. Part-time contracts; employees contracted to work for less hours than full-time.
4. Zero-hour contracts; no guaranteed minimum number of hours.
5. It can allow employees to work at home/pick the hours they work.
6. Benefits include: Can reduce fixed costs.
7. Adjusting labour costs flexibly.
8. More employees available to cover sickness.
9. SF can check efficiency of employees before offering full-time contracts.
10. Motivating for employees because can pick their own hours/allows employees to work at home.
11. Seasonal nature of farming. At harvest time more demand for labour on the farms to harvest crops.
12. Competitive markets that SF operates in.
13. There is seasonal demand for Sosoy Ice Cream so there is a need to vary production.
14. SF employs peripheral employees on temporary or zero-hour contracts linked to seasonal production.
15. Temporary contracts enable SF to respond flexibly to changing labour needs over time reducing costs for the business AN
16. Reducing costs will enable SF to set competitive prices AN which can attract customers and therefore increase market share L2AN
17. SF will be able to call in workers when needed if other employees are sick or on maternity leave thus ensuring that production is not disrupted AN
18. Zero-hour contracts enables SF to increase production quickly in response to unexpected changes in demand meeting customer needs more efficiently and boosting sales AN which may result in an increase in profit L2AN
19. Motivating for employees because they can pick their own hours/allow employees to work at home this would lead to lower employee turnover AN which would reduce costs for SF. L2AN