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9609 · 2.2.2

Human needs — practice questions

Practice and worked examples for 9609 Human needs. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

Software developers paid above market but leaving for start-ups with lower pay. Which needs might explain this?

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Physical/financial: Already satisfied — pay above market.

Esteem & self-actualisation unmet: Large firm bureaucracy limits autonomy, interesting projects, and recognition; start-ups offer ownership, challenge, and visible impact.

HR response: Job enrichment (2.2.4), intrapreneurship projects, clear promotion paths — address higher-order needs without only raising salary.

Worked example 2

ConnectWell Ltd, a call centre with 200 employees, is experiencing a 40% annual staff turnover rate. The average cost to recruit and train a new employee is $3,000. An employee survey indicates that unmet Safety needs (poor ergonomics) and Social needs (lack of team cohesion) are the primary causes. Management proposes investing $50,000 in workplace improvements (Safety) and $10,000 in team-building activities (Social). This is projected to halve the turnover rate to 20%.

Calculate the net financial benefit of these initiatives in the first year.

Show solution outline

Step 1: Calculate the current annual cost of staff turnover.

  • Number of employees leaving per year = 200 employees × 40% = 80 employees
  • Current annual cost = 80 employees × $3,000/employee = $240,000

Step 2: Calculate the projected annual cost of staff turnover after the initiatives.

  • New turnover rate = 20%
  • Number of employees leaving per year = 200 employees × 20% = 40 employees
  • Projected annual cost = 40 employees × $3,000/employee = $120,000

Step 3: Calculate the total cost of the initiatives.

  • Total investment = $50,000 (Safety needs) + $10,000 (Social needs) = 60,00060,000

Step 4: Calculate the net financial benefit.

  • Financial saving from reduced turnover = Current cost - Projected cost
  • Financial saving = 240,000−240,000 - 120,000 = 120,000120,000
  • Net financial benefit = Financial saving - Total investment
  • Net financial benefit = 120,000−120,000 - 60,000 = 60,00060,000

Conclusion: By investing $60,000 to address employees' safety and social needs, ConnectWell Ltd can expect a net financial benefit of $60,000 in the first year. This demonstrates a clear quantitative link between meeting human needs and improving business performance.

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