1.4.2 Recruitment, Selection & Training

Recruitment and selection process

Recruitment

🔗 The process businesses use to find new people to join the business

Selection

🔗Choosing the most suitable candidate for the job role e.g. through an assessment centre day

Internal recruitment

🔗Recruiting people from within the business

• Workers know there is the possibility of promotion, more motivated
• Quicker and cheaper than external recruitment, lower advertising costs, may be lower training costs, workers already familiar with some aspects of the business
• No new skillset added to the business may mean no new innovative ideas
• Worker may increase their wage demands, higher cost External recruitment

🔗Recruiting people from outside of the business

• May bring new ideas to the business, increased innovation and creativity
• May motivate other employees to perform better, promotes friendly competition, increases productivity
• More time-consuming and expensive e.g. higher advertising costs and higher training costs as workers are less familiar with the business
• Workers may have higher wage demands, higher cost

Cost of recruitment, selection and training

• Advertising costs
• Interview costs
• Training and induction costs

Types of training

Induction

🔗Training given to new employees to familiarise them with their new role

• Allows workers to adjust to business' culture, atmosphere and working practices quicker, more confident and comfortable in their job role, more productive, fixed costs spread over a wider range of output, lower cost per unit, more cost competitive in the short-term
• Allows workers to familiarise themselves with targets, can learn how to best succeed in their role, more motivated to work hard and achieve targets, more commitment, higher quality output or quality of customer service
• There may be high costs of setting up an induction day, worker may need more time to adjust and initially make more mistakes, leading to higher wastage and reduced efficiency, costs may outweigh the benefits
• Doesn't put workers in real working conditions, fails to prepare them for the reality of the job role, finance could have been better spent elsewhere and re-invested, opportunity cost On-the-job

🔗Training given to employees in the workplace e.g. work shadowing

• Allows workers to adjust to business' culture, atmosphere and working practices quicker, more confident and comfortable in their job role due to smooth integration, more motivated and productive, higher output produced, lower cost per unit, more cost competitive in the short-term
• Lower costs than off-the-job training as it is done internally, no additional costs of setting up a training scheme outside of the business, finance can be invested elsewhere into the business
• Shadowing another employee means time taken away from doing the job role, lower productivity, fixed costs spread over a lower range of output, higher cost per unit, less cost competitive
• Employees providing the training can pass on bad habits, may cause more mistakes to be made, increased wastage, lower efficiency, may cause a short-term fall in profits Off-the-job

🔗Training given to employees away from the workplace e.g. in colleges

• Workers are more confident in their job role after receiving training, more motivated
• Training helps employees become more skilled, higher quality output or quality of customer service
• Time taken away from doing job role, lower productivity
• Higher costs than on-the-job training, done externally to the business, financial cost may outweigh benefits if the worker fails to learn about the role properly, and therefore makes more mistakes when joining, increasing wastage and reducing efficiency, opportunity costs
• Doesn't put workers in real working conditions, may mean worker needs more time to adjust to the business culture, atmosphere and working practices, less smooth integration, lower productivity, fixed costs spread over a lower level of output opportunity cost In the short-term, lost productivity as employees are watching other workers/aren't in the workplace, higher costs for business if the employee is being paid during this time.

Likely to be beneficial in the long run as employee skills are enhanced, more productive and efficient

Usefulness may depend on whether employees increase their wage demands as this will increase the business' labour costs. May lose employees to rivals if they can offer higher wages, and opportunity cost as finance is invested into training.