A new independent cinema is preparing to open beside a shopping centre. It needs 12 customer-service employees to sell tickets, check screens and clean publ...
Question 1 Report
A new independent cinema is preparing to open beside a shopping centre. It needs 12 customer-service employees to sell tickets, check screens and clean public areas. The manager is considering a reward package with an hourly wage of $11.50, free cinema tickets and a monthly team bonus linked to customer ratings. Another option is to pay $13.00 per hour with no benefits. The cinema has limited funds before opening, but it needs reliable employees because poor service could lead customers to select larger competitors. A manager from a nearby hotel has said that non-financial benefits can improve retention, while higher wages may attract more applicants.
(a) Define the term employee benefits. [2]
(b) State three non-financial benefits the cinema could offer employees. [3]
(c) Calculate the weekly wage cost of employing 12 employees for 24 hours each at $11.50 per hour. [5]
(d) Analyse whether the cinema should select the lower wage with benefits and a team bonus. [10]
Answer Details
(a) Employee benefits are rewards, such as perks or services, provided in addition to basic pay. [2]
(b) Non-financial benefits could include free or reduced-price cinema tickets, flexible working hours, food discounts, extra holiday, training opportunities and staff recognition. Any three. [3]
(c) \[12\times24=288\text{ hours}\]
\[288\times\$11.50=\$3312\]
The weekly wage cost is \(\$3312\). [5]
(d) Free tickets and benefits can make employees feel valued, supporting retention. A team bonus linked to ratings may encourage cooperation and a focus on customer service. The lower basic wage also reduces fixed wage costs before sales are established.
However, \(\$11.50\) may attract fewer applicants than \(\$13.00\), and employees may leave for higher-paid work. A team bonus may seem unfair if one person's poor service lowers the rating, and not all employees value the same benefits.
The package is suitable if local employees value the benefits and rating targets are realistic, but the cinema should monitor turnover and service quality. [10]
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