Outline two common steps taken by a business in recruitment.

Explain two disadvantages for Wire of introducing a piece rate system of wages for its cleaning staff.

Calculate the financial impact on cleaners employed by Wire from the introduction of the piece rate system in 2016 (show all your working).

Calculate the change in cleaning costs per room from the introduction of the piece rate system used by Wire.

Recommend if Dales should stop outsourcing the cleaning of hotel rooms.

Common steps taken by a business in the process of recruitment include:
• identifying position
• evaluating the requirements for the position
• developing a job description
• determining recruitment plan
• determining search committee
• advertizing position
• reviewing applicants and developing a list to interview
• conducting interviews
• selecting the candidate that best fits the description
• offering position and negotiating terms.

Accept any other relevant step in the process of recruitment.

Award [1] for each step identified up to a maximum of [2].

• Housekeepers may stop worrying as much about the quality of the job they do, instead only worrying about the number of rooms they can clean per hour to achieve greater earnings.
• The piece rate method may also discourage teamwork in the workplace because individual housekeepers simply want to complete more of their own work.
• The increased stress that results from having to clean more rooms may result in increased staff turnover and make it more difficult to recruit housekeepers in the future.
• Staff may become demotivated because they now have to clean more rooms for less pay.
• The piece rate system could damage Wire’s relationship with its customers such as Dales as the bad press could lead Wire’s customers not to renew contracts.

N.B. Piece rates are usually considered a motivator, not a de-motivator. Candidates may be awarded marks for saying piece rates demotivate provided that have a clear and logical explanation based upon the circumstances of the case.

Mark as 2+2.

Award [1] for stating a disadvantage and an additional [1] for its explanation with reference to Wire. Award a maximum of [2].

Wages earned in time-based system = $6 × 8 × 5 = $240 per week [1].

Wages earned using new piece rate system = $2 × 20 × 5 = $200 per week [1].

Financial impact on cleaners = $40 per week. The question does not specify a time frame. Therefore, accept any time frame as long as the candidate is consistent. For example, $6 x 8 = $48 and $2 x 20 =$40. Financial impact on cleaners =$8 per day.

Cleaning wage cost per room in old system = $6 × 8 divided by 13 rooms = $3.69 per room [1].

New system: $2 per room, therefore the change in cleaning costs = $1.69 per room [1].

Own Figure Rule applies.

If Dales stops outsourcing its cleaners then costs will rise. Outsourcing did cut costs per room from 5 % of room revenues to 2 % – this is likely to be reversed if they stop outsourcing, unless of course they operate the same system as used by Wire: a piece rate system. Costs could, in the short run, increase – Dales will now be responsible for training and recruitment costs, which are unavoidable. These costs could be significant, especially since in 2016 Dales’s profits decreased from $24 m to $4 m. This increase in costs could cause them to make a loss at least in the short term.

However, stopping outsourcing will not deal with Dales’s other problems – wage rates at Dales are below the average for the hotel industry. Consequently, staff turnover is high. Recruitment is difficult due to the number of hotels in the area and the wages paid.

Cessation of outsourcing of cleaners will have no impact on these issues.

Hotel guests may find that their rooms are cleaned to a higher standard if Dales returns to having cleaners only clean 13 rooms per day rather than 20. However, if Dales sticks with the piece rate system adopted by Wire then nothing will really change and poorly cleaned rooms may continue to be an issue.

Hotel guests are critical not just about room cleanliness but also about food quality and poor customer service across the hotel. Cleaner rooms may help reduce the fall in room bookings but unless other concerns such as food quality and customer service are challenged then insourcing of cleaners may do little to arrest the decline in bookings.

Certainly, it is a step in the right direction, but Dales’s problems appear deeper than just poorly cleaned rooms and unless these are dealt with the future looks grim.

Dales operates in a highly competitive market and unless it offers wages on par with rival hotels then staff turnover will remain high. Continued high labour turnover will not help it establish better customer care and may be a significant factor in the poor quality of food sold in the hotel. Dales is positioned as a high-price and high-quality hotel – guests that pay high prices expect good food, polite staff and a clean room.

In order to reach the top bands of the markscheme candidates must demonstrate that insourcing will only solve one of Dales’s problems and must discuss the importance of the other factors in contributing to their falling room occupancy rates.

Accept any other relevant evaluation.

The table below should be followed (along with the markbands "Paper 2 markbands for May 2016 forward").

These mark awards in the table below should be viewed as maximums. That is, just because a candidate has one argument for outsourcing and one argument against does not mean that they will automatically get a 4. One strong argument for one side and merely a weak or nominal argument for the other side might result in a 3.

Marks should be allocated according to the Paper 2 markbands for May 2016 forward.

Many candidates could identify two common steps in recruitment. Students often wrote more than they need to. A few students misunderstood the question and outlined two ways that a business can attract new employees and suggested such things as competitive wages and job enrichment. These responses were not answering the question.

Many students could offer one disadvantage with explanation and application. Some struggled to have a second disadvantage with application.

Many students correctly answered this question.

Many students could answer this question as well, though probably fewer than could answer 3 (b)(ii).

Compared to the responses to 4 (d) and 5 (d), responses to 3 (d) often had less balance. Students clearly saw outsourcing as the source of Dales’ problems and argued to end outsourcing. Balance was possible, however, and some students achieved it.