Business (9225) | Recruitment and selection of employees

👋 Welcome to Recruitment and Selection!

Hi everyone! This is one of the most practical and important chapters in the Human Resources section. Every business, no matter how big or small, needs the right people to succeed. Think of recruitment and selection as the process of finding the ‘dream team’ for a company!

In these notes, we will break down the steps a business takes to find, interview, and hire new employees. Don't worry if this seems like a lot—we will use simple, step-by-step explanations!

Section 1: Identifying the Need for New Staff

Why Does a Business Need New Employees?

The need for new staff usually comes from two main situations:

1. Business Growth (Expansion):
If a company is expanding, opening new stores, or launching a new product, they need more hands on deck. This is a positive reason!

2. Labor Turnover (Replacement):
This happens when employees leave the business (they might retire, get a job elsewhere, or be dismissed). The company needs to fill these empty roles.
Key Term: Labor Turnover is the rate at which employees leave a business. High labor turnover is usually bad, as constantly hiring and training new staff is costly and disruptive.

Step 1: Job Analysis and Documentation

Before a business starts looking for people, it needs to figure out exactly what the new job involves and what kind of person they are looking for. This is done through Job Analysis, which creates two essential documents:

A. The Job Description (JD)

This document describes the JOB itself—the tasks, duties, and responsibilities involved.

• What it includes: Job title, department, who the employee reports to, main duties, and working conditions (e.g., shift work, travel required).
• Analogy: The Job Description is like the recipe. It tells you exactly what needs to be cooked (the duties).

B. The Person Specification (PS)

This document describes the ideal PERSON needed to do the job. It lists the necessary skills, qualifications, and personal qualities.

• What it includes: Educational qualifications (e.g., A-Levels, degree), experience, specific skills (e.g., fluent in Spanish, Excel proficiency), and attitude/character traits (e.g., reliability, teamwork skills).
• Analogy: The Person Specification is like the ingredients and the chef’s qualifications. It tells you what skills the person needs to follow the recipe successfully.

Section 2: Recruitment – Finding Candidates

The Two Main Methods of Recruitment

Recruitment is the process of finding and attracting suitable candidates for the job vacancy. Businesses choose between looking inside the company or outside.

1. Internal Recruitment

This means the business fills the vacancy by promoting or moving an employee who is already working for them.

Example: A manager position becomes free, and a junior supervisor working in the same store is promoted to fill it.

Advantages (Pros) of Internal Recruitment:

• Cheaper and Faster: No need for expensive advertising or lengthy screening processes.
• Known Quantity: The business already knows the employee's strengths, weaknesses, and reliability.
• Motivation: Promotes staff loyalty and encourages current employees to work harder if they see opportunities for promotion.
• Familiarity: The employee already understands the company's culture and procedures (less induction needed).

Disadvantages (Cons) of Internal Recruitment:

• Smaller Talent Pool: Limits the choice to existing staff only.
• Creates a New Vacancy: While one job is filled, the employee's old job now needs to be filled.
• Resentment: Employees who are overlooked for the promotion may become demotivated.
• No Fresh Ideas: The business doesn't benefit from new ways of thinking that an external hire might bring.

2. External Recruitment

This means the business looks outside the company to fill the vacancy.

Example: A company posts an advertisement online for a new Marketing Director.

Methods of External Recruitment:

• Online Job Sites/Social Media: Very common, fast, and reaches a huge number of people (e.g., LinkedIn, Indeed).
• Newspapers/Trade Magazines: Good for targeting specific industries or local applicants.
• Recruitment Agencies: Specialized agencies find candidates for a fee. Useful for high-level or specialized jobs.
• Educational Institutions: Hiring graduates or apprentices directly from universities or colleges.
• Job Centres/Government Schemes: Often used for lower-skilled or entry-level positions.

Advantages (Pros) of External Recruitment:

• Wider Talent Pool: Access to many more candidates, increasing the chance of finding the perfect person.
• Fresh Perspectives: New employees bring new ideas, skills, and approaches, helping the business innovate.
• Avoids Internal Conflict: No internal friction or arguments over who should have been promoted.

Disadvantages (Cons) of External Recruitment:

• More Costly: High costs associated with advertising, agency fees, and interviewing.
• Longer Process: Takes much longer to advertise, wait for applications, and screen candidates.
• Risk: The business does not know the candidate, so there is a higher risk that they won't fit the company culture or be reliable.

Section 3: Selection – Choosing the Best

The Selection Process Steps

Selection is the process of choosing the best candidate from the pool of applicants identified during recruitment. This is a critical process to ensure the right fit.

Step 1: Application Forms and CVs/Resumes

Candidates submit their details, qualifications, and experience.

• Businesses often prefer their own Application Forms because they ensure all applicants provide the same information in the same format, making comparison easier.
• Curriculum Vitae (CV) or Resume: A candidate-written summary of their experience and qualifications.

Step 2: Shortlisting

The HR team or hiring manager compares the application forms/CVs against the Person Specification. They eliminate applicants who clearly don't meet the essential criteria (like required qualifications or experience).
The goal is to narrow down hundreds of applicants to a small group (the shortlist) who will be invited for an interview.

Step 3: Interviews

This is usually the most important selection tool. Interviews allow the business to:

• Assess the candidate’s communication skills and personality.
• Judge their enthusiasm and suitability for the company culture.
• Ask detailed questions about their experience.

Accessibility Tip: For fairness, businesses should use structured interviews where all candidates are asked the same core questions. This makes it easier to compare responses objectively.

Step 4: Selection Tests (Optional but Useful)

Selection tests are used to get a better measure of a candidate’s abilities that might not come across in an interview.

• Skill Tests: Testing practical abilities (e.g., a typing test for a secretary, a programming test for a coder).
• Aptitude Tests: Measuring the candidate’s potential to learn new skills or succeed in the job role.
• Psychometric Tests: Used to assess personality traits (e.g., how they handle stress, whether they are good leaders or team players).

Analogy: If you were hiring a taxi driver, an interview is good for checking their attitude, but a driving test (skill test) is vital to check their actual ability!

Step 5: Reference Checks and Final Offer

Once the best candidate is identified, the business usually contacts their previous employers (references) to confirm details about their reliability and work ethic.
If references are satisfactory, a formal Job Offer is made, detailing the salary, working hours, and starting date.

Common Mistakes to Avoid in Selection

A poor selection process leads to a bad hire, which costs the business time, money, and potentially damages its reputation. Common mistakes include:

• Bias: Hiring based on personal feelings rather than objective criteria (i.e., ignoring the Person Specification).
• Poor Preparation: Not preparing interview questions properly, leading to useless information being gathered.
• Ignoring the PS: Hiring someone who is fantastic in the interview but lacks the essential skills defined in the Person Specification.