The Need for Recruitment (AQA GCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to Recruitment
Recruitment is the process of attracting and identifying potential job candidates who are suitable for a particular role
The goal of recruitment is to create a pool of qualified candidates who can be considered for a vacant role
Diagram: Reasons why Vacancies Arise
Vacancies can arise for reasons including business growth, employees leaving and reorganisation
Why do vacancies arise?
Businesses need to recruit workers for a range of reasons
Staff are often needed when a business is first established to support the entrepreneur during its launch and early stages of growth
Growing businesses may need more staff to allow them to increase output or diversify into new markets
When workers leave, a business usually wants to replace them to avoid disruption to operations
The specific details of the recruitment process may vary slightly between businesses due to different factors, including:
The urgency of the role needing to be filled
The budget involved in advertising the vacancy
The nature of the role and the skills required, e.g. some roles require very specific skill assessments
Preferences of management, e.g. preference of using CV's rather than application forms
The time available for the process to be completed
E.g. Google's recruitment process usually takes 6–8 weeks
Internal & External Recruitment
Businesses often use a combination of internal and external recruitment methods, depending on the nature of the job and the availability of suitable candidates
Internal recruitment
Internal recruitment is the appointment of a suitable candidate who already works for the business
Advertisements for internal candidates are shared in business newsletters, staff noticeboards or through internal email/intranets
E.g. A new project management role within the organisation may be advertised in the weekly staff newsletter
Line managers may be asked to recommend suitable candidates following appraisals
Recruiting internally has a range of advantages and disadvantages
Advantages and Disadvantages of Internal Recruitment
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External recruitment
External recruitment is where a new employee is appointed from outside the business
External candidates can be targeted with advertisements in newspapers, industry magazines, specialist recruitment websites or employment agencies
Existing employees may be asked to nominate people they know for roles, sometimes receiving a reward if their nominee is successfully recruited
Businesses can use social media platforms to advertise cost-effectively e.g. LinkedIn
A headhunting agency can be used to make 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
Businesses can attend careers fairs, hosted by universities or industry bodies, to promote available opportunities
These events attract significant numbers of highly-qualified, interested candidates
External recruitment overcomes some of the disadvantages of internal recruitment
New skills, experiences and ideas are introduced to the business
However, it is often more expensive than internal recruitment
Advertising in the mass media is particularly expensive and it can be difficult to target the desired audience
There is also a greater degree of uncertainty as external candidates are unknown to the business
Benefits of an Effective Recruitment Process
Businesses that establish effective recruitment processes experience a range of benefits
Diagram: Benefits of Effective Recruitment
Effective recruitment can attract top talent, lower staff turnover and improve a businesses reputation, as well as reduce costs and business risks
The benefits
Attracting top talent
An effective recruitment process helps a company attract and identify the best candidates for vacancies
Individuals with the right skills and experience can improve business productivity and performance
E.g. Netflix targets engineers with at least three years' experience as opposed to fresh graduates, and interviews focus on their knowledge of programming and technology
Reducing staff turnover
Businesses that recruit well tend to retain staff, which reduces staff turnover
Long-serving staff are likely to deliver high-quality customer service
High staff turnover can be costly for businesses due to the expense of advertising vacancies and training new employees
Enhancing employer brand
Applicants who have had a positive experience during the recruitment process may pass on their impressions to others
This can make the business attractive to future candidates, giving it an advantage over rivals in the competition for top talent
Diversity and inclusion
Effective recruitment processes identify and attract applicants from a range of backgrounds and with varied experience
This better representation of the company's customer base can lead to improved decision-making and relevant innovation
E.g. Slack has eliminated all recruitment processes that could exclude certain groups, and allows applicants to apply on-site as opposed to at home, where there may be distractions
Cost savings
An effective recruitment process can save time and resources, reducing the need for short-term, expensive solutions to fill workplace gaps
E.g. Employment agencies charge a premium to make employees available at short notice to short-staffed businesses
Suitably skilled employees are likely to produce high quality output and reduce wastage, reducing costs
Reducing risks
An effective recruitment process helps businesses comply with relevant employment laws
This reduces the risk of legal action and the need to pay compensation for discrimination
Examiner Tips and Tricks
Candidates commonly confuse staff turnover and staff retention. Staff turnover refers to the proportion of staff leaving a business during a given time period, whereas staff retention refers to the proportion of staff remaining with a business during a given time period.
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