Human Resource Management for Deliveroo

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Introduction

In present-day developments, the importance of human resource management cannot be underestimated in the context of any type of business, and the company Deliveroo is among the ones, which require an analysis of this aspect. It adheres to the gig economy and perceives the workers as contractors, which means that they are self-employed. The company makes use of such theoretical models as Atkinson’s ‘flexible firms’ and Reward Strategies, which involve both benefits and drawbacks. This way, the purpose of this paper is to present a human resource management report for Deliveroo, applying appropriate theoretical models, reviewing the strengths and weaknesses, and understanding inherent tensions.

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Flexibility

Flexibility is the priority and the major advantage of the companies, which are designed on the model of Deliveroo. Atkinson’s model of ‘flexible firm’ is implemented to achieve freedom in the context of numerical, temporal, and functional indicators (Torrington, Hall, Taylor, & Atkinson, 2014). The ability to adjust to the particular conditions in the numerical context regards adoption to the number of employed people in a company (Wilkinson & Johnstone, 2016). Therefore, full-time workers are predominantly or substituted by the ones, who sign contracts in the short term. Such an option provides an enterprise with an opportunity to decrease or increase the activity of employees in case it is necessary without significant expenditures, which is an absolute strength. Therefore, the possibility to respond to the working environment rapidly is cheaply is the primary benefit of such a model.

This model has multiple variations in it in accordance with the employee’s qualifications and the current operational purposes of a company. All the workers may be relatively divided into several groups on the criterion of their position in a company and the attitude of an employer to them. The first one implies the full-time employees, who comprise the core personnel. They are granted decent payments, stability, career prospects, paid holidays, and other perks Wickramasinghe, Wickramasinghe, Silva, Chandrasekara, & Jayabandu, 2019). The second group includes “those who have skills that are needed but not specific to the particular firm, like typing and word processing” (Torrington et al., 2014, p. 99). The last group is “made up of those enjoying even less security, as they have a contract of employment that is limited, either to a short-term or a part-time attachment” (Torrington et al., 2014, p. 99). Such a position may be occupied by the temporary candidate supplied by human resource agencies.

Another aspect of flexibility involves temporal context, which means changes in the number of working hours to respond to the needs of the staff members and the demands of a company. This scheme is beneficial for an employer, as it makes it possible to match the workload and payments for the workers (Lehdonvirta, 2018). It also increases the number of part-time positions, which allows attracting wider variety of employees.

The last type of flexibility regards the functions of a business and means that workers are provided with a capacity of tasks instead of focusing on only one of them. As a result, each employee can fulfill a variety of duties, and they are ready to respond to the demands of a company at any time, and this tendency is titled horizontal flexibility. In addition, another form of this freedom, which is a vertical one, includes sharing parts of the tasks higher or lower within the hierarchy in the workplace.

Flexibility is the priory in the company Deliveroo, which implies a service application created to deliver meals from partner-restaurants to customers via riders. Therefore, the variations of the aforementioned model are implemented in this enterprise. For instance, Shu, who is one of the founders of this business, marks that the employees of Deliveroo partnerships with other delivery services and accept the orders in accordance with the current demand (Edwards, 2017). This way, the company addresses one of the most considerable problems of riders, which is the lack of stability (McClear, 2015; Edwards, 2017). Unlike full-time workers, they have fewer insurances and perks, though the company provides them with an opportunity to increase their salary by responding to orders of other applications (McClear, 2015; Edwards, 2017). These are the primary negative consequences and weaknesses of flexibility, which regard the personnel.

In addition, there is another concern on such freedom of an employee. In case of any accident and trauma in the workplace, they are highly likely not to receive any compensations and are constrained to cover all the expenditure, this presents a problem, as such position does not include high salaries (McClear, 2015). To solve this problem, Deliveroo has attempted to establish welfare perks for the riders, which involve accident cover, first aid training, and medical insurance (Edwards, 2017). However, part-time and temporary personnel still do not receive payments during holidays and periods of illness, which are not connected with their professional activity (McClear, 2015). Nevertheless, in general, this implementation may be considered to be appropriate, taking into consideration the interests of the riders and the employer.

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Apart from the option described above, Deliveroo sticks to other all the kinds of Atkinson’s model. Therefore, the flexibility regards the working hours of riders, and the division of tasks among all the workers (Edwards, 2017). Such a structure allows the company to adjust to the demand and reduce the expenditures and losses. This way, Deliveroo implies a variety of flexible systems, which are connected and supplement each other.

Another strength of flexibility is a possibility to adjust to changing working environment. As Deliveroo partnership with local restaurants, it is capable of adapting to the cultural and traditional context of a particular location. This regards its expansion in Singapore, where a working team was tasked to explore the tastes and food preference of the population (Wickramasinghe et al., 2019). Therefore, Deliveroo does not have to reorganize the entire system to implement in new environment. It can explore the market and sign the most profitable partnerships in accordance with the current trends.

Reward Strategies

As has been mentioned previously, the lack of security is the major negative consequence of flexibility. The necessity to minimize this aspect is evident to provide the staff member with relatively decent working conditions and some kinds of stability (Taba, 2018; Kalleberg & Dunn, 2016). Reward strategies may become an effective approach to improve the position of part-time workers and motivate all the staff members to do their best (Taba, 2018; Kornelakis, 2018). Furthermore, it shows the appreciation of knowledge and skills of employees, which is stimulating too.

There is a variety of options for reward strategies, which may be implemented in any type of business. One of the approaches implies highlighting the amount of time an employee worked overtime (Kornelakis, 2018). It is crucial to advance a comprehensive system of payment, which includes compensation for a wide range of overtime wages from 10% to more considerable ones (Kornelakis, 2018). In the case of flexible businesses, this strategy may be valuable in the context of delivering the staff members the opportunity to increase their salary to some extent.

The second one regards praising incentives of a worker or a group of workers. The working environment occasionally requires the personnel to make an efficient decision, help others, provide a customer with additional services, and other incentives (Challenge Consulting, n. d.). Such a willingness to provide the clients with services of high quality or assist colleagues should be rewarded too (Challenge Consulting, n. d.). Furthermore, employees frequently may make a meaningful proposal on operation improvements, as they appear to be the witnesses of the realization of all the goals of a company (Challenge Consulting, n. d.). Consequently, incentives are highly likely to be also beneficial for a business and its development.

Bonuses may also be applied to highlight the achievements of staff members, and the primary advantage of this strategy is the fact that it may be expressed in various forms. For instance, a worker may receive additional payment for finding a satisfactory solution to a difficult situation or for advancing a rationale incentive (Messina, n. d.). Another approach implies supplying the employees with opportunities to entertain themselves in their spare time, develop or improve their skills, and obtain new knowledge (Messina, n. d.). Offering personnel to attend the language classes free of charge or rest in a spa with considerable discounts may be an illustrative example.

As for the enterprises, which need to cope with the negative consequences of flexibility, it may be a practical approach. Staff members will highlight the fact that their efforts are marked and appreciated, and this fact will motivate them to make significant contributions to the development of a company (Taba, 2018; Kalleberg & Dunn, 2016). In addition, in case a rational bonus system is established, workers will receive an opportunity to increase their payments by fulfilling precise criteria.

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As for Deliveroo, the company has implemented some bonuses, which are available for the riders, too. It makes significant investments to provide the employees with attractive perks (Deliveroo, 2019; Glassdoor, 2019). For instance, they can access numerous online courses free of charge (Deliveroo, 2019). This aspect not only increases the reputation of the company, but also supplies an opportunity to acquire new knowledge and improve the competency of the staff members. Another pleasant perk regards the tips, which are paid by customers to the riders (Glassdoor, 2019). Deliveroo may be considered an honest organization in this respect, as it sends all the amenities to the riders (Deliveroo, 2019; Glassdoor, 2019). It is undeniable that workers admire and appreciate such fairness. Furthermore, they attempt to do their best to receive tips, and this fact positively influences the quality of services.

This measure also addresses the major disadvantage of flexibility by allowing the workers to influence their income. In the short term, this may present a decent substitution for a career promotion, which is available only for full-time employees. Furthermore, the fact that there is competitiveness among delivery service application in the context of recruiting personnel is evident (Kalleberg & Dunn, 2016). In general, the company demonstrates appreciation for the employees to a large extent. They are paid additionally in case of heavy weather conditions or for shift during night time (Deliveroo, 2019). The reward system also takes into consideration the number of orders completed by a rider and involves appraisals for achieving particular records.

Summarizing the aforementioned reflections, it can be mentioned that reward strategies include numerous benefits for both the employees and the business development. It motivates the personnel to do their best and improve their performance, which influences the quality of the service. Therefore, the company obtain credibility and loyalty among clients. It is also helpful in coping with competitiveness in the context of recruiting staff members. People tend to apply their candidate to the employers, who appreciates their labor. Furthermore, it contributes to minimizing the primary problem of flexibility, which is lack of financial stability. For this reason, a reward strategy presents an integral part of continuous development of Deliveroo.

However, there are some disadvantages, which may be associated with this system. First of all, it does not provide an appropriate substitution for career promotion and social security. Secondly, it is relatively difficult for supply an honest reward system, which takes into consideration all the detail of work. There is a likelihood that a rider’s achievements would not be noticed at all. In addition, it occasionally does not involve unexpected or unusual situations.

Conclusion

Although the priority of Deliveroo, namely its flexibility, makes it attractive and competitive, it also implies serious negative consequences. Riders lack stability and security, and this may present a hot-button problem for them. However, there are satisfactory implementations, which can improve the situation and resolve it partly. For instance, riders are offered to take the order from other delivery service applications to increase their salary. Furthermore, they have an opportunity to adapt the working schedule to their needs. A bonus system is also beneficial for employees and is stimulating them to do their best. These suggestions are also highly likely to lead to positive changes in the entire company in the long run.

References

Deliveroo. (2019). Ride with us. Web.

Edwards, J. (2017). Will Shu talks about the workers’ rights litigation that threatens $2 billion Deliveroo. Business Insider. Web.

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Glassdoor. (2019). Deliveroo reviews. Web.

Kalleberg, A. L., & Dunn, M. (2016). Good jobs, bad jobs in the gig economy. The Gig Economy: Employment Implications: Perspectives on Work 2016, 20. Web.

Kornelakis, A. (2018). Why are your reward strategies not working? The role of shareholder value, country context, and employee voice. Business Horizons, 61(1), 107-113. Web.

Lehdonvirta, V. (2018). Flexibility in the gig economy: managing time on three online piecework platforms. New Technology, Work and Employment, 33(1), 13-29. Web.

Messina, R. (n. d.). Employee bonus programs: What’s right for your company?. Web.

McClear, S. (2015). Too many independent contractors are essentially employees- without the benefits. The Guardian. Web.

Taba, M. I. (2018). Mediating effect of work performance and organizational commitment in the relationship between reward system and employees’ work satisfaction. Journal of Management Development, 37(1), 65-75. Web.

Torrington, D., Hall, L., Taylor, S., & Atkinson, C. (2014). Human resource management. Essex, England: Pearson.

Challenge Consulting. (n. d.). What are incentives at work? Web.

Wickramasinghe V., Wickramasinghe, G.L.D., Silva, C. D., Chandrasekara, R., & Jayabandu, S. (2019). Practice of workforce flexibility—Internal, external, numerical and functional flexibility. Performance Improvement Quarterly, 31(4), 355-379. Web.

Wilkinson, A., & Johnstone, S. (2016). Encyclopedia of human resource management. Strathclyde, United Kingdom: Edward Elgar.

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