Strategic HR Decision at a Language School
A Parisian language school offers intensive courses using tutors hired on short-term contracts of 6-12 months. This model attracts recent graduates who then move on to other careers. Management is now considering two proposals to manage its staffing.
- Proposal A: Increase tutor salaries significantly and offer multi-year contracts to reduce the number of employees who leave each year.
- Proposal B: Accept the high rate of departures as part of the business model and invest in creating a highly efficient, repeatable system for recruiting and training new tutors every six months.
Which of these two proposals represents a more logical strategic investment for the school, given its established business model? Justify your decision by evaluating the primary trade-off associated with each option.
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