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Staff as Asset or Cost

Compare treating employees as an asset with treating them as a cost, linking motivation, productivity, involvement, labour expenses and business performance.

Syllabus
First assessment 2019
Course
Business XBS11/YBS11
Level
AS

Exam points

  • Analyse how valuing employees as an asset can improve involvement, productivity and business performance.
  • Compare asset and cost approaches through motivation, labour costs and contextual business needs.

1.3.4.1a - Staff as asset or cost question 1

[Maximum number: 6]

Extract A The History of Nando's Nando's is a fast-food restaurant chain started by Fernando Duarte and Robert Brozin in South Africa. It sells a range of spicy chicken and vegetarian dishes. Entrepreneurs Fernando and Robert took a risk and opened the first Nando's restaurant in 1987 after enjoying spicy chicken in a Portuguese restaurant. By the end of 1989 they had opened three more restaurants. Today, there are Nando's restaurants in most major cities around the world. All its restaurants have a trendy, fun and unique design by local designers and artists.

Extract B Nando's Indian menu (selected items)

Table for Question 1.3.4.1a - Staff as asset or cost question 1 — Edexcel A-Level Business AS

Extract C Employees at Nando's Employees who work at Nando's are called Nandocas. Nando's employees are seen as family members and it aims to treat them as an asset to the business. It states, 'Nando's is not just about the chicken, it's about the people that make the chicken.' In 2022 Nando's was named as one of the UK's best large companies to work for. In South Africa, Nando's has a programme called Harambee that recruits young unemployed people and gives them skills to prepare them for the workplace. Nando's uses a training programme called Buddy. A buddy is an employee who has completed all job roles in the business. Buddies supervise new employees to pass on their knowledge and skills.

Extract D Market research at Nando's Before opening stores in China, Nando's conducted primary market research to understand Chinese food preferences and dining habits. Two hundred surveys were carried out with Chinese chefs, restaurant owners and managers. A random sampling survey method was used to conduct the primary market research.

Analyse two advantages to Nando's of treating its employees as an asset rather than a cost.

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