A strategy in which employees of a service company are hired as contractors to work for a certain number of hours per year for fixed sum of money is called ______.
A)subcontracting
B)outsourcing
C)annualized hours strategy
D)monthly hours strategy

Question

Quizplus · Accepted Answer

The given strategy where employees are contracted to work for a certain number of hours per year for a fixed amount of money is known as an annualized hours strategy. This helps companies to manage labor costs as they can plan their labor requirements in advance and hire workers accordingly. It also provides flexibility to workers as they can choose to work more or fewer hours during specific periods based on business needs. Option A is incorrect because subcontracting involves hiring another company to perform specific tasks or projects. Option B is incorrect because outsourcing involves contracting a third-party company or individual to perform activities that would otherwise be done in-house. Option D is incorrect as the monthly hours strategy does not exist as a standard term used in the human resource management domain.

A Strategy in Which Employees of a Service Company Are