Recruitment, Selection & Training (Edexcel A Level Business)

Revision Note

Steve Vorster

Expertise

Economics & Business Subject Lead

The Recruitment & Selection Process

  • Recruitment is the process of attracting and identifying potential job candidates who are suitable for a particular role
    • Recruitment activities include job advertising, job fairs, social media outreach and referrals from current employees
    • The goal of recruitment is to create a pool of qualified candidates who can be considered for the role

  • Selection is the process of choosing the best candidate
    • Selection activities often involve reviewing CVs and conducting interviews or assessment tasks
    • The goal of selection is to hire the most suitable candidate for the job
       

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The recruitment and selection process

 
1. Define the role

  • Businesses should determine exactly what is required and part of that is developing a job description and a person/job specification
    • A job specification outlines the qualifications, skills, experience, and personal qualities required from a candidate for a specific job e.g. problem solver, good communicator, able to code in Java etc.
    • A job description outlines the duties, responsibilities, and requirements of a particular job
       

2. Determine the best source of candidates

  • The business can advertise the role internally, externally, or a combination of both
    • Internal recruitment is the process of hiring employees from within the organization
      • Internal recruitment can be beneficial as it encourages employee development, builds morale and can save time and money on training
    • External recruitment is the process of hiring employees from outside the organization
      • External recruitment can bring fresh ideas, experiences and perspectives to the organization

3. Advertise

  • Businesses with a strong social media presence can use these platforms to advertise cost effectively e.g. Facebook, LinkedIn, TikTok
  • Depending on the nature of the business, there may be specialist recruitment portals through which they can advertise and these tend to cost more e.g. The Times Educational Supplement is one of the main publications used to recruit teaching staff

 

4. Receive applications

  • The application stage involves collecting information from potential candidates
  • A business may have its own application form which should gather information such as personal details, qualifications, and work experience
  • Applicants may also be asked to submit their curriculum vitae (CV) and cover letter explaining why they believe they are the right person for the role
  • Someone within the business must be nominated to manage the application process
    • This person (possibly together with others) will draw up a shortlist of candidates from the many applications received
    • The shortlist usually includes 3-5 candidates who are invited to interview

5. The selection process

  • This process varies significantly between organisations
  • Businesses must decide on the most appropriate method which will help them to identify the best candidate
    • The most commonly used methods include interviews and assessment tasks
       
  • Interviews
    Involves meeting (face to face or virtually e.g. Zoom) and asking questions about their skills, experience, and knowledge. It is important to prepare a set of relevant questions to ask all candidates and to ensure that the interview is conducted in a fair and consistent manner
     
  • Assessment tasks
    Provide
    shortlisted candidates with the opportunity to demonstrate their skills and suitability for the job. The assessment tasks may include psychometric tests, group exercises, presentations, and interviews

Costs Associated with Recruitment, Selection & Training

  • Recruitment, training, and selection are essential processes for any business to attract, develop, and retain a skilled workforce
  • These processes involve significant costs for businesses which can impact their overall profitability and competitiveness
     

The Costs of Recruitment, Training & Selection


Recruitment Costs


Training Costs


Selection Costs

  • Recruitment costs refer to the expenses incurred in the process of hiring new employees
  • These include advertising, recruiting, interviewing, and screening candidates
  • High labour turnover rates can significantly increase these costs
    • When employees leave the business they have to spend money and time recruiting and training new employees to fill the vacant positions

  • Training costs refer to the expenses incurred in the process of providing training to new or existing employees
  • These include the cost of trainers, training materials, and facilities
  • The effectiveness of training can impact these costs
    • If the training is not effective, employees may require additional training or take longer to learn new skills, which can increase the cost of training

  • Selection costs refer to the expenses incurred in the process of selecting candidates for employment
  • These include background checks and visa costs
  • High labour turnover rates can increase selection costs as the business has to spend more regularly

 

  • By reducing labour turnover rates and improving the effectiveness of their training programs, businesses can minimise these costs and improve their overall profitability and competitiveness

Types of Training Provided by Businesses

  • Different types of training have their advantages and disadvantages for the business

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Three common types of training that businesses put their new employees through

 

Induction training

  • Induction training is a type of training that new employees receive when they start working for a company
    • It introduces them to the company, its culture, policies, procedures, and their job roles and responsibilities
      • E.g. when new employee joins Marks & Spencer they receive induction training that covers customer service, product knowledge, store policies, and safety procedures
         

The Advantages & Disadvantages of Induction Training


Advantages


Disadvantages

  • Helps new employees to understand their job roles and responsibilities
  • Introduces employees to the company culture, policies, and procedures
  • Improves employee confidence and motivation
  • Reduces the time taken for new employees to become productive

 

  • Can be time-consuming and expensive to organise
  • May not cover all aspects of the job role
  • May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates

 

On the job training

  • A type of training that takes place while employees are working in their job roles
    • It allows employees to learn new skills and knowledge from colleagues while performing their job duties
      • E.g. A sous chef at The Ivy Restaurant in York may receive on-the-job training from the Chef to learn how to prepare new dishes, use new equipment, or improve their cooking techniques
         

The Advantages & Disadvantages of On the Job Training


Advantages


Disadvantages

  • Employees learn new skills and knowledge while performing their job duties
  • Training is tailored to the employee's specific job role and responsibilities
  • Training is often more practical and relevant to the employee's job duties
  • Can be cost-effective as it takes place during working hours

 

  • Employees may make mistakes while learning, which can impact productivity and quality
  • Can be disruptive to the workplace as it requires the trainer to devote time to training the employee
  • May not be effective in all cases, leading to employee dissatisfaction and higher turnover rates

Off the job training

  • A type of training that takes place outside of the workplace
    • It can be in the form of workshops, seminars, conferences, or online courses
      • E.g. Teachers can attend exam board training days at which they learn how to better teach the syllabus and help their students to prepare for their exams
         

The Advantages & Disadvantages of Off-the-Job Training


Advantages


Disadvantages

  • Employees learn new skills and knowledge outside of the workplace, which can bring fresh ideas and perspectives to the workplace
  • Training can be tailored to the employee's specific needs and interests
  • Training can be used as a reward or incentive for high-performing employees
  • Can be cost-effective if training is provided online or through webinars

  • Can be expensive to organise, especially if travel and accommodation are required
  • Employees may miss work while attending training, which can impact productivity
  • The training may not be directly applicable to the employee's job role or the needs of the firm

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Steve Vorster

Author: Steve Vorster

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.