Recruitment (Grade 12 NSC Matric Business Studies): Revision Notes
Recruitment
Introduction to recruitment
Recruitment is one of the most critical functions within human resources management. Employees represent the most valuable asset of any business, which means that the success of an organisation depends heavily on having effective recruitment processes in place. The human resources department must utilise reliable recruitment procedures and systems to achieve specific organisational goals.
The primary aim of recruitment is to attract and find the best possible candidates who possess the required skills, knowledge, qualifications, competencies, and experience to fill available positions within the business. This process requires careful planning and execution to ensure that the right people are placed in the right roles.
The meaning of recruitment
Recruitment is a systematic approach that businesses use to identify specific vacancies within their organisation and attract suitable candidates to fill these positions. This is a continuous and ongoing process because employees regularly leave their jobs for various reasons.
Employees regularly leave their jobs for various reasons, including:
- Career advancement opportunities elsewhere
- Achieving promotions within or outside the company
- Retirement from the workforce
- Need for new technical skills that require different expertise
The recruitment process begins when a business actively starts seeking and finding candidates for vacant positions. It continues through to the successful integration of the chosen candidate into the organisation. Companies can choose to use either internal methods (recruiting from within) or external methods (recruiting from outside) depending on the nature and specific requirements of the vacancy.
Recruitment procedure
The human resources manager (HRM) should follow a systematic approach when conducting recruitment. This structured procedure ensures that the best candidates are identified and selected efficiently:
Step-by-Step Recruitment Process
Step 1: Job evaluation and analysis
The HRM must thoroughly evaluate the position and prepare a comprehensive job analysis. This includes developing both a job description and job specification to clearly identify what the role requires.
Step 2: Determine recruitment method
The HRM should decide whether to use internal recruitment (promoting from within) or external recruitment (seeking candidates from outside). This decision should be based on reaching and targeting the most suitable applicants.
Step 3: Select recruitment sources
If external recruitment is chosen, the HRM must select appropriate sources such as recruitment agencies, tertiary institutions, newspapers, or electronic media platforms.
Step 4: Internal advertising (if applicable)
When using internal recruitment, vacancies can be advertised through internal emails, word of mouth, posters, or office notice boards.
Step 5: Consider external options
External recruitment should only be considered if internal recruitment proves unsuccessful in finding suitable candidates.
Step 6: Prepare advertisements
All advertisements should include relevant information such as the company name, contact details, and contact person information.
Step 7: Strategic placement
Place advertisements in selected media channels that will ensure the best candidates see and respond to the opportunity.
Job analysis
Job analysis is a valuable tool used by the human resources function to gather and examine detailed information about the business's workforce. This information is then used strategically to place and recruit the right person for the right position.
A comprehensive job analysis consists of two main components: a job description and a job specification. Employers must have a clear understanding of the nature and type of work that potential employees will need to perform. This clarity ensures that appropriate job descriptions and job specifications can be prepared effectively.
The differences between job description and job specification
| Job description | Job specification |
|---|---|
| Describes the duties and responsibilities of a specific job | Describes the minimum acceptable personal qualities, skills, and qualifications needed for the job |
| Provides a written description of the job and its requirements, including a summary of the nature and type of job | Offers a written description of specific qualifications, skills, and experience needed for the position |
| Describes key performance areas for a specific job, including job title, duties, working conditions, location of work, and relationship with other positions | Describes key requirements for the person who will fill the position, such as formal qualifications and willingness to travel or work unusual hours |
Understanding the clear distinction between job descriptions and job specifications is essential for effective recruitment. Job descriptions focus on what the job involves, while job specifications focus on what the person needs to do the job successfully.
Methods of recruitment
Businesses typically use two main approaches to recruitment. The choice between these methods is determined by the nature and type of job being filled, as well as its specific requirements.
Internal recruitment
Internal recruitment refers to the process of finding potential candidates for available positions from within the existing business structure.
Sources of internal recruitment
Companies can utilise various channels to advertise positions internally:
- Internal communications: Using emails, intranet systems, or company websites to inform staff about opportunities
- Word of mouth: Allowing information about vacancies to spread naturally through informal conversations
- Company publications: Including opportunities in business newsletters or circulars distributed to staff
- Management referrals: Having internal managers recommend suitable candidates
- Notice boards: Displaying vacancy announcements on office notice boards
- Internal bulletins: Publishing regular updates about available positions
- Employee recommendations: Encouraging current employees to suggest suitable colleagues
- Database searches: Using headhunting techniques within the business or organisational database
The impact of internal recruitment
Advantages of internal recruitment:
Internal recruitment offers several significant benefits to organisations. When businesses recruit existing employees through promotions or transfers from within, they create valuable opportunities for career advancement that reward good performance and motivate current staff members. This approach helps retain reliable and key staff members who might otherwise seek opportunities elsewhere.
Staff morale and productivity tend to increase when employees see that suitable team members are promoted regularly, creating a positive work environment. Current employees already understand the business operations and functions, which reduces the learning curve significantly. The business benefits from knowing the personality, strengths, and weaknesses of internal candidates, making selection decisions more informed.
Additionally, the recruitment process becomes faster and less expensive when candidates are already known to the organisation, eliminating many of the costs and time delays associated with external searches.
Disadvantages of internal recruitment:
However, internal recruitment also presents certain challenges. Current employees may not bring fresh ideas into the business, potentially limiting innovation and creative problem-solving. When one employee receives a promotion, it may cause resentment amongst other existing employees who feel they were overlooked.
The pool of applicants is naturally limited to current staff only, which restricts choice and may mean missing out on exceptional external candidates. Sometimes, employees who lack the required skills for a new position may still be promoted, leading to performance issues.
Current employees may need extensive training and development before they can effectively handle promoted roles, which can be expensive and time-consuming. Finally, employees who are not promoted may feel demotivated, which can negatively impact productivity and workplace morale.
External recruitment
External recruitment involves finding potential candidates for available positions from outside the business.
Sources of external recruitment
Businesses can access external candidates through multiple channels:
- Print media: Advertising in newspapers, magazines, and trade publications
- Electronic media: Using radio and television advertisements to reach wider audiences
- Digital platforms: Utilising social media, professional networks, internet job sites, and business websites
- Recruitment agencies: Working with professional recruitment firms that specialise in candidate sourcing
- Direct approaches: Using walk-ins where candidates approach the business directly
- Headhunting: Actively seeking specific individuals with desired skills from other companies
- Professional networks: Connecting through industry associations and professional bodies
- Networking events: Attending industry functions and career fairs
- Educational institutions: Partnering with universities, colleges, and training institutions
- Outdoor advertising: Using posters and billboards strategically placed outside business premises
The impact of external recruitment
Advantages of external recruitment:
External recruitment brings several valuable benefits to organisations. New candidates contribute fresh talents, ideas, experiences, skills, and knowledge that can revitalise the business and introduce innovative approaches to challenges.
This method can help businesses meet affirmative action requirements and Employment Equity Act (EEA) and Broad-Based Black Economic Empowerment (BBBEE) targets, supporting transformation objectives. Companies gain access to a much larger pool of candidates, providing more choice and increasing the likelihood of finding exceptional talent.
There's a better chance of finding suitable candidates with the precise qualifications, competencies, and experience needed, particularly for specialised roles. These candidates often require minimal training and development, which helps reduce costs and speeds up productivity.
External recruitment minimises potential conflict amongst current employees who might compete for internal positions. When new workers actively contribute value to the business, overall efficiency and productivity can improve significantly.
Disadvantages of external recruitment:
External recruitment also presents certain challenges that businesses must consider. External sources can be expensive, particularly when using recruitment agencies, advertising in premium publications, or conducting extensive background checks.
The selection process may result in choosing ineffective or incompetent candidates, especially when CVs and references cannot be fully verified or may contain inaccurate information. The recruitment process typically takes much longer and consumes more resources compared to internal alternatives.
New candidates generally require more time to adjust to unfamiliar work environments, company culture, and operational procedures. In-service training becomes necessary to familiarise new employees with company-specific processes, which decreases productivity during the adjustment period and increases business costs.
Finally, processing numerous applications from unsuitable candidates can significantly slow down the selection process and create administrative burdens for the human resources team.
Key Points to Remember:
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Recruitment is a systematic process businesses use to identify vacancies and attract suitable candidates to fill positions within the organisation.
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Job analysis consists of two key components: job descriptions (what the job involves) and job specifications (what qualifications and skills the person needs).
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Internal recruitment sources candidates from within the business and offers advantages like faster processes and better knowledge of candidates, but may limit fresh ideas and create internal conflicts.
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External recruitment brings new talent and ideas from outside the organisation but can be more expensive and time-consuming than internal methods.
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The choice between internal and external recruitment should be based on the specific nature of the position, required skills, and organisational needs.