Internal and external constraints – Hamptons

Hamptons is currently experiencing high staff turnover. High staff turnover means that staff at Hamptons are regularly being employed and leaving the company. This is bad for the company, because it would mean that the relationships between the staff and the business are regularly being broken. In order to solve the problem of high staff turnover at Hamptons, careful management would need to be carried out. There are various constraints that would affect Hamptons in reducing its staff turnover. These could either prevent or reinforce Hamptons’ efforts of reducing staff turnover. There are two types of constraints: internal and external. Internal constraints are factors within the business that may assist or prevent the fulfilment of a task.

External constraints are factors outside the business that may open or close the possibilities in a business achieving its targets. To identify the internal and external constraints on Hamptons, a useful way of analysing this would be implementing a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis identifies the ways in which a business can be assisted in achieving an objective, or the ways in which it is prevented. Strengths and weaknesses are both internal constraints, and opportunities and threats are both external constraints. Below is a SWOT analysis of the internal and external constraints that intervene with Hamptons bid to reduce staff turnover.

Effects of constraints

The strengths of Hamptons reducing its staff turnover means that the factors of strength associated to them would reinforce its bid to stop staff turnover. Weaknesses are the possible causes of staff turnover. Opportunities are the steps Hamptons could take to reducing staff turnover, and threats are the external pressures that may cause Hamptons problems in reducing its staff turnover.

Strengths

* By offering staff a variety of gyms incorporating the latest equipment, Hamptons gives staff the best facilities to use in completing their job. This could lead to staff enjoying their job, and job satisfaction could be gained.

* Staff have free access to equipment, so they can use equipment for personal benefits as well as work. Staff would therefore tend to be happy with the offers of Hamptons. They can also socialise with customers and other members of staff in Hamptons. This could lead to them developing good relationships, and they may want hesitate in leaving the company because they may leave behind friends.

* Staff can have regular breaks. This means that they do not have to work all the time. Many people do not like working long hours. This gives staff lots of free time to catch up on their pursuits. The effects this could have on Hamptons are that there may have to employ more staff to evenly cover the missing hours, so that staff can still have their regular breaks

* Hamptons has a flat structure. This means that because of the flat structure, communication links would probably be good, and staff can stay in touch with other members, and their messages would not get distorted. This would lead to less confusion. Because of the flat structure, the communication would probably be informal. Staff can make friends as a result, as everyone would know everyone else.

* Staff may receive training for certain jobs. This could further develop their skills, and increase their level of motivation. This could lead to job satisfaction. In order to provide more training to staff, the amount of time spent with them would have to increase. The company would have to spend more time with staff, and this could sidetrack the company and prevent it from achieving its objectives to the maximum possible extent.

* Shift work may be involved. Shift work is when workers work are arranged to work in a rotation, so that each of them work a specified number of hours, and there is always a worker available to provide services in the leisure centre. This could be good or bad, depending upon the amount of time that staff are required to work for, and the number of rotations that are necessary. Shift work would mean that the business would have to allocate the time for each worker effectively, so that all of the opening hours are covered throughout the day. This could lead to staff having more breaks.

Weaknesses

* Some members of staff, especially the gym instructors, may have to follow a repetitive routine in their daily work. This could be boring to them and they may lose interest. Hamptons could overcome this problem by carrying out job enrichment, job enlargement and job rotation strategies (Applying business theory).

* Few job opportunities. Workers may lose motivation and interest in Hamptons if there are no job opportunities such as promotion. Because Hamptons has a flat structure, there are not many senior places that would be free for lower hierarchy staff to accommodate. Hamptons could provide more job opportunities by expanding, which is what they are considering, but the chance of promotion by replacing a worker could lead to conflict between the two individuals, so this should be taken into consideration.

* If there is an age limit for a job, such as the job of a gym instructor, ageing workers may not decide to apply for the job or stay. Hamptons could try to solve this problem by providing more benefits for workers in this state, or not selecting workers like this in the first place.

* Low pay and over-qualification may lead to workers leaving. Hamptons could try and satisfy the needs of its workers by providing appropriate pay, so that staff achieve job satisfaction and motivation. Over-qualified staff should be provided with more opportunities, such as promotion, and offered a wider responsibility to play in the company. Extra pay for these staff should be precautious; workers of the same hierarchy may also demand similar wages, and may become jealous.

* Shift work may be involved. Shift work is when workers work are arranged to work in a rotation, so that each of them work a specified number of hours, and there is always a worker available to provide services in the leisure centre. This could be good or bad, depending upon the amount of time that staff are required to work for, and the number of rotations that are necessary. Shift work would mean that the business would have to allocate the time for each worker effectively, so that all of the opening hours are covered throughout the day. This could lead to staff having more breaks.

* Hamptons may grow larger in the near future. Maintaining good communication and relationships in a flat structure may become difficult because of this, and a higher amount of money would have to be invested in order for this to take place. This could affect the wages of staff.

* Lack of rewards could lead to lack of motivation. Hamptons could try and offer more rewards to workers, like a bonus for the best worker, or free equipment for the best worker, etc.

* Because Hamptons is a local leisure centre, and recruits workers locally, there may be a lack of specialist workers. This could lead to the wrong staff being employed. By increasing the target range for recruitment, Hamptons may achieve a higher number of applications, and more specialist workers applying.

* Lack of fringe benefits. This is payment in the form of a product or service, and is given to staff along with the pay. These benefits are usually intended for higher hierarchy employees. By providing more fringe benefits for lower hierarchy staff, there could be an increase in the level of motivation; staff would feel that they are being rewarded. On the other hand, this could prove to be an expensive scheme for the company, and they may desire the next aspect of benefit to stay motivated.

Opportunities

* Hamptons could expand. This strengthens its image, and could attract more people to apply to the leisure centre. This would require some costs, but in the long term, it could lead to the business making a higher level of profit.

* Increase in market share if expansion occurs. By achieving an increase in market share, Hamptons could become better known, and its image and reputation could be strengthened. This is unlikely, as Hamptons is a local business that would not be in competition with other businesses.

* Development of facilities could motivate staff more, and realise that Hamptons could have potential. This would require Hamptons investing in more equipment, and the deficits would have to come from somewhere (i.e. employees’ wages).

Threats

* Rival companies could attract Hamptons’ employees by offering better wages and facilities. Hamptons should carry out some research on this concept, and provide the necessary needs for its staff, as long as it can be afforded.

* Taxes, interest rates, capital, etc. could lead to Hamptons making a loss. If staff found out that Hamptons was unsuccessful, they may decide to leave.