High Rates of Labour Turnover (AQA Paper 2 2021 Q3.4)

Summary

In this video, the presenter walks through an AQA Business exam 16-mark question on labor turnover, using Chillax, a high-quality spa hotel, as a case study. The question asks to what extent businesses should be concerned about high labor turnover. The presenter explains how to approach the question by balancing arguments: Chillax would be concerned due to its focus on quality service, but other industries, like hospitality or football clubs, might not be. The video emphasizes the need for context, analysis, and evaluation in answering such open-ended exam questions, ultimately concluding that most businesses should be concerned about high turnover, though exceptions exist.

Takeaways

• 😀 16-mark open questions require a balanced approach, combining both case study analysis and real-world examples to address the broader question.
• 😀 The question asks to what extent businesses should be concerned about high labor turnover, focusing on its potential impact on operations and competitiveness.
• 😀 Chillax, the case study business, benefits from low labor turnover, as it provides consistency and high-quality service that differentiates it from competitors.
• 😀 For Chillax, high labor turnover would be concerning due to the risks of losing experienced staff, which could negatively affect customer experience and business performance.
• 😀 High labor turnover is often costly, especially if it involves key employees who take clients or knowledge with them to competitors.
• 😀 Other industries, such as hospitality and farming, may not be as concerned about high turnover since they often rely on temporary or seasonal workers.
• 😀 High turnover in industries like hospitality can help keep costs low by adjusting labor to seasonal demand, which is a normal business practice.
• 😀 Football clubs provide a good example of businesses that thrive on high turnover, using it to refresh teams with new talent or managers to meet their objectives.
• 😀 Evaluation of labor turnover depends on the availability of skilled workers to replace those who leave and whether businesses can maintain competitive wages and benefits to attract new employees.
• 😀 The conclusion emphasizes that while some businesses may not worry about high turnover (e.g., seasonal businesses), most service-oriented businesses, like Chillax, rely on skilled and experienced staff to maintain service quality.
• 😀 The final judgment supports the idea that, for most businesses, high labor turnover is generally a concern due to the associated costs and risks of losing valuable employees and expertise.

Q & A

What is the main focus of the 16-mark exam question discussed in the video?

The main focus of the question is on labor turnover, specifically asking to what extent all businesses should be concerned about high rates of labor turnover.

Why is the case study of Chillax important in answering this question?

Chillax is used to explore how a business with low labor turnover can benefit from employee retention, which leads to consistent customer service and a competitive advantage. It provides a concrete example for arguing why some businesses might be concerned about high labor turnover.

How does the video suggest structuring the answer to a 16-mark question?

The video suggests starting by addressing the case study (Chillax) first, explaining why the business should be concerned about high labor turnover. Then, the answer should consider other industries or businesses where high turnover might not be a concern. Finally, the answer should include a supported conclusion.

What specific aspect of Chillax's business would make them concerned about high labor turnover?

Chillax would be concerned about high labor turnover because it could lead to wasted investments in staff training, particularly if skilled employees leave for competitors. This could negatively affect customer experience, ratings, and revenues.

How does the video demonstrate the importance of application in answering the exam question?

The video emphasizes using data from the case study (e.g., Chillax's 13.3% labor turnover compared to the industry average of 30%) and specific examples (such as the impact of losing popular exercise leaders or treatment specialists) to contextualize the argument and show clear application.

What industries or business situations might not be concerned with high labor turnover?

Industries that rely on temporary or seasonal labor, such as hospitality and farming, are less concerned with high labor turnover because it aligns with their business model. These industries often experience high turnover during peak seasons and can manage it by adjusting their workforce based on demand.

How do football clubs serve as an example of businesses that benefit from high labor turnover?

Football clubs frequently change managers and players each season. This high turnover is part of their strategy to achieve sporting and business goals, with the idea that frequent recruitment can bring in new talent and fresh strategies.

What is the role of evaluation in a 16-mark business exam question?

Evaluation in a 16-mark question involves balancing the arguments by considering the varying impacts of high labor turnover on different businesses or industries. It also includes assessing the extent to which the issue is significant, depending on factors like industry norms or the availability of replacement workers.

What does the video suggest about concluding a 16-mark question?

The video suggests that the conclusion should summarize the main points and provide a judgment about the question, supported by the preceding arguments. The conclusion should address the extent to which businesses should be concerned, adding a bit of extra application or insight without introducing new arguments.

What additional industries does the video suggest might be concerned with high labor turnover, besides Chillax?

The video mentions industries like professional services, healthcare, and education, where high labor turnover could be a concern due to the high costs of recruiting and training staff, as well as potential negative effects on service quality.