Investing in new technology costs money, but businesses often undertake such investment because of the reduced costs that implementing new technology can bring in the long term.

A business will incur costs when investing in any digital communication system. However, the initial costs will enable longer-term savings to be made. Examples of how businesses can save money using digital communication systems include:

The increasing availability of digital communication tools is enabling more and more employees to work remotely, for example from home. This can help to reduce costs for businesses, as they can operate from smaller offices.

Communications can be sent more cost-effectively in electronic format, such as via email or instant messaging, removing the costs involved in printing and postage.

Even greater savings may be made where video conferencing is used, since this can remove the costs associated with travelling to face-to-face meetings.

Social media provides a quick, cost-effective way for businesses to communicate and interact with customers. It enables even small businesses to reach a wide audience for a minimal cost.

The development of new payment technologies has enabled traditional businesses to take payments in a more secure and cost-effective way without needing to hold large amounts of cash on their premises.

In addition, real-time online transactions can take place, with a business receiving payment almost immediately.

This convenience does come at a cost, though. Businesses that handle card payments charge a small percentage fee for every transaction.

Technology has had a significant impact on the way that businesses market their products and services.

The speed at which technology develops means that successful businesses need to be flexible and adapt to change, so that they can respond quickly to customers.

Technology affects the marketing mix – product, price, place and promotion – in various ways.

Product - Products can be adapted and accessed easily in a format that is convenient to the customer.

Price - Money saved by using digital communication can help a business to keep its prices low.

Place - Customers can access services regardless of where they are, eg through mobile banking apps.

Promotion - Businesses can email newsletters, track customer behaviours on social media and their website, and advertise online.

Product - Customers can download digital products (eg music tracks or e-books) immediately after payment.

Price - Customers can compare prices across online sellers easily, so prices need to be competitive.

Place - Selling online provides another way for customers to make a purchase at any time, wherever they are.

Promotion - Promotional offers or ‘flash sales’ are easy to implement through an e-commerce website.

Product - Product information can be shared using video demonstrations where appropriate.

Price - Cost savings may enable a business to lower its prices.

Place - Businesses can interact with customers around the world, regardless of location.

Promotion - Social media is a cost-effective way of targeting promotions at specific groups of customers.

Product - Online payment methods allow digital products to be purchased easily.

Price - Any fees incurred through the use of specific payment methods need to be accounted for when setting the price of a product.

Place - New payment methods have facilitated the ability to sell products online.

Promotion - Businesses can promote the fact that they offer a variety of ways for a customer to pay, eg cash, card, PayPal.

The term ‘employment law’ refers to any piece of government legislation designed to protect employees from exploitation. In the UK, there are four areas of employment legislation that form the basis of employee rights in the workplace:

recruitment – this legislation outlines what employers can and cannot do when recruiting staff, and what their responsibilities are once a job offer has been made

pay – this legislation covers pay and is designed to ensure that the pay workers receive is above a set minimum level

discrimination – this area of employment law is designed to ensure that employers treat all people fairly

health and safety – legislation around health and safety is designed to keep employees safe while they are at work

When recruiting new staff, employers need to make sure that they are complying with any relevant government legislation during each stage of the process.

During this stage, businesses must consider the Equality Act (2010), which requires employers to treat people fairly and not discriminate in any way. This means, for example, that a business cannot advertise a vacancy as only being open to people under the age of 30.

Recruiting involves collecting and using personal data, so businesses also need to ensure they are complying with the Data Protection Act (2018). All candidates applying for a job must give permission for their personal information to be used. They can also ask the business to delete any information that the business holds on them – for example, if they were unsuccessful in their application.

When an employee starts a new job, the Employment Rights Act (1996) requires that they are provided with a written statement outlining the details of their employment within two months of them starting. This written statement must include basic details, such as:

The Pensions Act (2008) may require new staff to be enrolled into a pension scheme. Both the business and the employer will make contributions to the scheme.

There are two significant laws that determine what businesses must and must not do when it comes to paying their workers. These are the National Minimum Wage Act (1998) and the Equality Act (2010).

Under the National Minimum Wage Act (1998), all businesses must pay their staff a minimum hourly rate. There is no exemption for small employers or discounts for geographical areas. The aim is to increase the incomes of the low paid. The rates are set each year by the government.

For people aged 16 to 24, this is called the national minimum wage. It varies according to different categories (under 18, over 18, over 21 and apprenticeships).

For people aged 25 or over, it is called the national living wage.

What businesses must not do
The Equality Act (2010) makes it illegal for a business to pay people different rates of pay if they are doing the same job or similar jobs. This means, for example, that a business cannot pay a male member of staff more than a female member of staff if they are employed in the same role.

Age - No preference can be given to someone based solely on their age unless there is a specific reason for doing so, eg being old enough to hold a driving licence for a job that involves driving.

Disability - Businesses cannot discriminate against disabled people. They must also take reasonable steps to enable access to the workplace and provide any appropriate equipment that disabled people need to work.

Gender - Unless there is a specific exception (eg a school may choose to recruit a PE teacher of the same gender as the students they will be teaching), a business cannot treat men and women differently, or treat one gender less favourably.

Marital status - People should not be treated differently because they are single, married or in a civil partnership.

Pregnancy and maternity - Women cannot be discriminated against on the grounds of being pregnant, or during the period following the birth of their baby.

Sexual orientation - People cannot be discriminated against on the grounds of their sexual orientation (whether they are lesbian, gay, bisexual or heterosexual). They also cannot be discriminated against if they are transgender.

Race - Discrimination on the grounds of nationality, race, colour or ethnicity is not permitted.

Religion - Discriminating against people based on their religious beliefs, including those who have no religious beliefs, is not allowed.