Recruitment, Selection & Training (Edexcel A Level Business)

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Written by: Steve Vorster, Economics & Business Subject Lead

Reviewed by: Jenna Quinn, Head of New Subjects

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

Flowchart with hexagonal steps: Define role, Source applicants, Advertise positions, Receive applications, and perform Selection including interviews or tasks.

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
  - It can involve the promotion or redeployment of staff to fill a vacant post
  - Vacancies are advertised internally on staff notice boards, in newsletters or via in-house electronic communications

Evaluation of Internal Recruitment

Advantages	Disadvantages
Internal candidates are already familiar with business culture and processes Can adapt to the role quickly Little need for induction training	Can lead to conflict or resentment May affect motivation and working relationships between successful/rejected internal candidates
Business has a good understanding of the candidate's strengths, weaknesses, skills and aptitudes Less risky than employing an external candidate whose abilities are less well-known	A further vacancy is created when an employee is promoted/redeployed External recruitment may be necessary to fill vacated job roles
Opportunities to progress can be motivating for existing employees Improves loyalty and commitment	A limited number of suitable applicants may be available internally
Cheaper and quicker to promote or redeploy existing staff rather than recruit externally	Missed opportunity to inject new ideas, experience or skills into the business

External recruitment is the process of hiring employees from outside the organisation
- External recruitment can bring fresh ideas, experiences and perspectives to the organisation
- It overcomes some of the disadvantages of internal recruitment
- However, it is often more expensive than internal recruitment
- There is also a greater degree of uncertainty as external candidates are unknown to the business

A Comparison of External Recruitment Methods

Method	Explanation
Referrals/Personal Recommendations	Current employees may recommend a suitable candidate for a vacancy Employees may be rewarded if a candidate is successfully appointed
Online Advertising	Vacancies can be advertised on a businesses own website or on a specialist recruitment website such as Glassdoor or CharityJobs.com This method is relatively low-costs with a wide reach
Newspaper Advertising	Adverts to attract local candidates can be placed in district or regional newspapers High-profile vacancies, such as public sector roles, may be advertised in national newspapers Although relatively expensive, these ads can be highly targeted
Specialist Trade Publications	Roles are advertised in magazines or newsletters that are read by professionals in a particular industry Example include fashion industry journal Drapers and education journal The Times Educational Supplement (TES)
Employment Agencies	Specialist recruitment agents advertise roles on behalf of the business Some also conduct interviews or other selection activities A recruitment fee is charged when the business appoints a candidate
Headhunting	A headhunting agency makes attractive approaches to highly-qualified specialists in a particular industry/with desired skills, experience or knowledge A significant fee is payable once a candidate is appointed
Job Centres	Low level vacancies can be advertised free of charge in government-funded centres and increasingly online
Careers Fairs	Events often hosted by universities or industry bodies to promote available opportunities Attract significant numbers of highly-qualified, interested candidates

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 identify the best candidate
The most commonly used methods include interviews and assessment tasks

An explanation of interviews and assessment tasks

Interviews	Assessment tasks
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	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 programmes, 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

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 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 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

Last updated: 25 October 2024

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