flexible working contracts and the advantages and disadvantages of temporary or flexible contracts including zero hours, part-time, full-time, annualised hours, flexi-time, home working, shift working, job sharing, compressed hours and the gig econom

7.4 HRM Strategy – Approaches to HRM

Traditional vs Strategic HRM

Think of a school: Traditional HRM is like the old classroom where the teacher simply tells you what to do. Strategic HRM is like a project‑based class where you plan, collaborate, and adapt to achieve a common goal. In business, strategic HRM aligns people with the company’s future plans, while traditional HRM focuses on day‑to‑day tasks.

Flexible Working Contracts

Flexible contracts let employees choose when and where they work, just like choosing your own study schedule. Below are the main types:

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  Zero‑hour contracts – no guaranteed hours; you’re called in when needed.

• ⏰ Part‑time – fewer hours than full‑time, like a weekend shift.
• 💼 Full‑time – standard hours, usually 35–40 per week.
• 📆 Annualised hours – total hours fixed for the year, but spread flexibly.
• 🕒 Flexi‑time – choose start and finish times within a core window.
• 🏠 Home working – work from home, like studying from your bedroom.
• 🔄 Shift working – rotating day, evening, or night shifts.
• 🤝 Job sharing – two people share one full‑time role.
• ⏱️ Compressed hours – work the same weekly hours in fewer days (e.g., 4×10h).
• 🚀 Gig economy – short, task‑based contracts, like freelance gigs.

Advantages of Temporary or Flexible Contracts

1. 🔧 Adaptability – companies can quickly adjust staffing for busy periods.
2. 🌍 Work‑life balance – employees can fit work around school, sports, or family.
3. 💡 Innovation – fresh ideas from diverse, short‑term workers.
4. 📈 Cost control – pay only for the hours actually worked.
5. 📚 Skill development – workers gain experience in many roles.

Disadvantages of Temporary or Flexible Contracts

1. ⚖️ Uncertainty – no guaranteed hours can make budgeting hard.
2. 📉 Lower loyalty – employees may feel less attached to the company.
3. 🛠️ Training costs – frequent onboarding can be expensive.
4. 🚫 Limited benefits – fewer perks like pensions or paid leave.
5. 📊 Data gaps – harder to track long‑term performance.

Contract Comparison Table