Human Resources Strategy

HUMAN RESOURCES STARTEGY

Objectives:

1.Increase employees' motivation and employees' morale.

2. Increase employees' engagement.

3. Retain highly skilled staff.

4. Create a sufficient rewarding scheme in order to keep employees satisfied.

RECRUITMENT

The recruitment process for BKB Motors will consist of applicants filling in an application form after having applied through the company website. The successful candidates will be called in for a face-to-face interview and after a process of selection, offered a position in one of our factories.

At the beginning of first year, we intend to recruit 10,000 employees for the factory in Spain. The factory will consist of 5 production lines, each containing 2,000 workers. We will also have an addition of 1,500 workers to cover for absenteeism, holidays and sick leave. This adds up to 11,500 employees working for the factory in Spain.

At the beginning of second year, we plan to recruit 8,000 employees for the factory in Czech Republic. The factory will consist of 4 production lines, each containing 2,000 workers. In that factory we will have additional 1,200 workers to cover for absenteeism, holidays and sick leave. This will add up to 9,200 employees.

Salary

Spain and Czech have one of the lowest labour costs compared to other European countries and hence that is one of the main reasons why we are locating our factories in those countries. The table below shows the wage rates of six European countries:

UK France Italy Germany Spain Czech Rep.

532 520 487 698 332 204

Orange Logic LTD,2011

In the first year of operation, BKB will offer a wage rate of £350 per week per employee in our factory in Spain and in second year £214 per week per employee in our factory in the Czech Republic. We offer a 5% higher wage rate than the average one in both countries. We do this in order to increase motivation and morale within the workforce. Moreover, this will make it easier for us to attract more skilled staff and after the start of the business to retain it. We believe that it is important to offer workers competitive salaries as lower wages can impact negatively productivity, morale and levels of absenteeism. Lower wages can also result in a higher unit cost and lower quality. Therefore, the higher wage rate we offer should encourage employees to work hard and so maximise their productivity