2021 BTEC Business
L3 Unit 6 Principles
of Management
PowerPoint
Presentation and
Speaker Notes
(DISTINCTION*)
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Anvil Cloud Ltd
Meet skill requirements.
❑Current management issues:
• High staff turnover
• Unsatisfying employees’ experience
• All interns leaving
• No HR/ employees’ experience function
❑Strategic priorities – meet skills demand
❑Business performance and the necessity of
change
1
Anvil Cloud Ltd (ACL) operates in the highly competitive market of computer
support providers and more specifically it offers cloud-based IT solutions for
businesses. The company is based in the town centre of Reading and the
business has been operating since 2012. It has a solid number of clients ranging
from small to middle seized businesses. Currently there are 70 employees,
however due to the growth of the business and the new contracts won by ACL,
there is a clear need for workforce expansion. Consequently, the founder Pam
Grainer wants to immediately recruit 10 new employees, to meet the new
demand. However, there is a high demand for experienced staff in the industry,
resulting in aggressive competition among employers. Additionally, ACL has very
high staff turnover, meaning that the company finds it hard to keep employees.
The average staff turnover in ACL is 46%, more than three times higher in
comparison to the industry average of 13.2% (LinkedIn survey 2018). This is a
alarming difference, it suggests that ACL’s employees aren’t satisfied in their
workplace and therefore are not loyal to the company. People are the greatest
asset of any company and when employee leaves it rises a number of issues.
High staff turnover decreases the quality of service and it’s continuity. Customers
1
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as well as current employees may find it difficult to adopt to the frequent change
of staff members. It also creates bad brand image, thus discouraging professionals
to work for the company. Further it puts a lot of pressure on the HR department
as they have to with resignations, recruitments and all of the paperwork coming
with those processes.
ACL invests 6 to 12 months in training interns, teaching them relevant IT skills and
knowledge. Further those interns learn how to work with clients and meet their
needs. Letting all of the interns is a great lost of talent, especially in industry with
high skill shortage.
Due to the fact that IT plays a significant role in most of the current businesses,
the demand for specialised computer skills is very high in all sectors. Consequently
this skill shortage results in high competition among employers, thus making it
harder for ACL to attract and retain well qualified professionals.
Looking at the job roles list for ACL there is no HR function in the company. This
can make it hard for employees to develop and maintain solid relationships with
other colleagues. Employees can become frustrated with the company and
dissatisfied with their job. This unavoidably will have impact on their productivity
and motivation. The absent of HR could be one of the reasons of employees
leaving.
1
www.nursylab.com
Downloaded by: bruensterling |
Distribution of this document is illegal
L3 Unit 6 Principles
of Management
PowerPoint
Presentation and
Speaker Notes
(DISTINCTION*)
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
www.nursylab.com
Anvil Cloud Ltd
Meet skill requirements.
❑Current management issues:
• High staff turnover
• Unsatisfying employees’ experience
• All interns leaving
• No HR/ employees’ experience function
❑Strategic priorities – meet skills demand
❑Business performance and the necessity of
change
1
Anvil Cloud Ltd (ACL) operates in the highly competitive market of computer
support providers and more specifically it offers cloud-based IT solutions for
businesses. The company is based in the town centre of Reading and the
business has been operating since 2012. It has a solid number of clients ranging
from small to middle seized businesses. Currently there are 70 employees,
however due to the growth of the business and the new contracts won by ACL,
there is a clear need for workforce expansion. Consequently, the founder Pam
Grainer wants to immediately recruit 10 new employees, to meet the new
demand. However, there is a high demand for experienced staff in the industry,
resulting in aggressive competition among employers. Additionally, ACL has very
high staff turnover, meaning that the company finds it hard to keep employees.
The average staff turnover in ACL is 46%, more than three times higher in
comparison to the industry average of 13.2% (LinkedIn survey 2018). This is a
alarming difference, it suggests that ACL’s employees aren’t satisfied in their
workplace and therefore are not loyal to the company. People are the greatest
asset of any company and when employee leaves it rises a number of issues.
High staff turnover decreases the quality of service and it’s continuity. Customers
1
www.nursylab.com
Downloaded by: bruensterling |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
www.nursylab.com
as well as current employees may find it difficult to adopt to the frequent change
of staff members. It also creates bad brand image, thus discouraging professionals
to work for the company. Further it puts a lot of pressure on the HR department
as they have to with resignations, recruitments and all of the paperwork coming
with those processes.
ACL invests 6 to 12 months in training interns, teaching them relevant IT skills and
knowledge. Further those interns learn how to work with clients and meet their
needs. Letting all of the interns is a great lost of talent, especially in industry with
high skill shortage.
Due to the fact that IT plays a significant role in most of the current businesses,
the demand for specialised computer skills is very high in all sectors. Consequently
this skill shortage results in high competition among employers, thus making it
harder for ACL to attract and retain well qualified professionals.
Looking at the job roles list for ACL there is no HR function in the company. This
can make it hard for employees to develop and maintain solid relationships with
other colleagues. Employees can become frustrated with the company and
dissatisfied with their job. This unavoidably will have impact on their productivity
and motivation. The absent of HR could be one of the reasons of employees
leaving.
1
www.nursylab.com
Downloaded by: bruensterling |
Distribution of this document is illegal
