Recruitment Methods (OCR GCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Internal Recruitment Methods

  • Internal recruitment occurs when a person who already works for a business is appointed to a job role

  • This is commonly achieved through promotion or redeployment

  • Vacancies can be advertised internally in a variety of ways, including:

    • On staff noticeboards

    • In internal newsletters

    • Through business intranet systems or email

  • A line manager may also recommend an employee for promotion

An Evaluation of Internal Recruitment Methods

Advantages

Disadvantages

  • The member of staff is already familiar with the business culture and working practices

  • The business is aware of the employee's strengths and weaknesses

  • There is no need for induction training and employees are ready to start their new role immediately

  • Expensive advertising is not needed

  • When an employee moves to a new role, their old job needs to be filled

  • There may be resentment amongst employees who are overlooked 

  • No new ideas or experience come into the business, which could limit creativity and innovation

External Recruitment Methods

  • External recruitment is when a business hires an employee from outside of the business

  • Job vacancies can be advertised in a variety of locations, including:

    • In the media, such as local or national newspapers

    • In industry publications, e.g. The Times Educational Supplement publishes advertisements for teaching staff

    • On recruitment websites, such as Indeed.com

    • On social media platforms, such as Linked In

    • In government-run job centres

    • Outside of the business premises, such as a shop window

  • In addition, existing employees may recommend external candidates

Evaluation of External Recruitment Methods

Advantages

Disadvantages

  • A larger number of applicants may be attracted to apply for vacancies, providing more choice for the business

  • New recruits are usually highly motivated and keen to impress

  • New ideas and experience are brought into the business, sometimes from competitors

  • New employees may need support from colleagues and induction training, which slows down productivity initially

  • Advertising for external staff can be expensive and take a long time

  • A candidate who performs well at interview may be unsuitable for the job when they start work

Recruitment and Employment Agencies

  • A recruitment agency can be used to perform much of the recruitment process on behalf of a business, including:

    • Drawing up job descriptions and person specifications

    • Advertising vacancies on its own platform and in other media

    • Collecting applications and shortlisting suitable candidates

  • Interviews or other selection activities are then carried out by the business, to determine the preferred applicant for a role

  • The main advantages of using a recruitment agency include:

    • Less time is taken up in recruitment activities, allowing managers to focus on core tasks

    • Businesses can avoid having to employ HR specialists to carry out recruitment tasks

    • Recruitment agencies have up-to-date, comprehensive knowledge of labour market conditions, as well as the best ways to advertise for suitable applicants

  • An employment agency is often used to fill short-term vacancies

    • The agency maintains a database of people interested in particular types of work

    • When approached to fill a role, the employment agency provides details of workers available to fill the position

    • A suitable worker is chosen by the business, which then pays the employment agency an agreed-upon fee

    • The employment agency then pays the worker, who does not work for the business itself

Examiner Tips and Tricks

Students often confuse recruitment agencies with employment agencies. The main difference is that a business employs workers appointed by a recruitment agency. Employment agency workers, often called 'temps' are not employed by the business.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

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.