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Recruitment and Selection

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Business Studies

Employees make up the backbone of any company. They play a hugely important role in conducting the business's operations. Senior management sets the vision and the objectives, but the employees are responsible for putting in the work to keep the company on the right path to achieving its vision and objectives. Therefore it is crucial to understand the recruitment and selection process that companies use.

The importance of recruitment

What is recruitment?

Recruitment is the procedure of searching for, finding, and hiring new employees.

Before discussing the recruitment process, you must first understand what has brought about the need for recruitment. In the case of a new business, employees would need to be recruited to perform operational tasks.

If a company wants to expand its operations, it will look to recruit employees. The expansion may be planned in terms of increasing production or manufacturing different products for new markets. The need for recruitment also arises when existing employees are leaving or have left the company. The company will then naturally want to replace these staff with new employees.

Types of recruitment

Recruitment may be done internally by the company’s Human Resources (HR) department, or it can be delegated to other recruitment companies with the expertise to effectively complete the process of recruitment. There are two primary types of recruitment:

Internal recruitment – In this type of recruitment, a company recruits employees from the existing employees. It is usually done by promoting the existing employees to more senior positions or by transferring them to different departments. A vacancy notice is posted on the company’s internal communication platforms, and in some cases senior managers recommend an employee for a new job role.

There are many benefits to internal recruitment. For example, the company does not have to advertise externally, thereby reducing costs. Existing employees are already familiar with the company and its working environment; therefore, they would not take too long to adjust to new roles.

External recruitment – In this type of recruitment, a company wants to hire people from outside the company. External recruitment is necessary when a company is either new or wants to expand its operations by producing new products for new markets.

The job is typically advertised on the internet, in newspapers, magazines, etc. This recruitment can be done either by the company’s HR department or the external recruiters. It is a good method to add fresh talent to the existing pool of employees but it is more costly than internal recruitment.

The method of recruitment

Figure 1 below outlines the recruitment process:

Recruitment needs identification – The process starts with identifying the need for recruitment. A new business opening, expansion, or job role in the company are all examples of recruitment needs.

Job analysis – Job analysis should be conducted in the next step. This analysis helps in interpreting the role of the job. Important details such as job description and applicant specifications are identified through job analysis. These analyses help in determining the duties associated with the job and the key attributes a potential applicant must have to be considered for the job.

Job advertisement – In this step, the jobs are advertised. Appropriate advertising channels are used for specific recruitments. Internal and external advertisements are employed depending on the type of recruitment a business is looking for.

Creation of a pool of applicants – People apply for the jobs after reading about them via advertisement. This process continues till the application deadline. Finally, a pool is created of all the applicants.

Recruitment and Selection, The recruitment process, StudySmarterFigure 1. The recruitment process, StudySmarter

Recruitment and Selection: The importance of selection

Selection is an integral part of the overall recruitment process, happening after the creation of a pool of applicants. Once the HR department or the external recruiter has a list of applicants, they start the process of selection.

Selection is about choosing the employees who are the most suited for the advertised job from the pool of applicants.

The whole process depends on the effectiveness of selection. Applicants are shortlisted at this stage, and they are put through different tests to check their competence. A wrong selection could put the entire recruitment process at risk, meaning a loss of financial resources, time, and effort.

Recruitment and Selection: Method of selection

The following methods are the most used by employers in the selection process.

Interview – This is the most common method used in selection. A panel comprised of two or more people interview applicants. Different questions related to the applicant and the job are asked during the interview. This helps give a general impression of the applicant.

Recruitment and Selection, A panel conducting an interview, StudySmarterA panel interviewing an applicant, Wikimedia Commons

Psychometric test – In this kind of test, multiple-choice questions are asked from the applicant. This test helps in determining the personality of the applicant. It is an effective method to use in the selection because it shows whether the applicant is a right fit for the role and the company culture or not.

Assessment centre – In this method, applicants are required to complete a set of tasks. These tasks are usually like the actual tasks on the job. It could give a comprehensive analysis of the applicant’s expertise and personality for the role.

Why an effective recruitment and selection process is important

An effective recruitment and selection process ensures the appointment of the right employees for the job. It means employees who are skilled and experienced in the field join the workforce. It could be a costly process, but its benefits outweigh its costs.

Increase in productivity – Having skilled and experienced employees would increase productivity in any business. Employees can produce more in less time. This means the cost of production could decrease as the production becomes efficient.

Quality products – Employees with expertise and knowledge produce quality products. It often happens that quality is compromised during production due to a lack of knowledge and skill. Having competent employees certainly reduces the likelihood of a lapse in the production process.

Better customer service – Customer service is an important factor in the success of a business. Employees, who are best at their jobs, are better equipped to give value to customers. They know the product and can assist the customers in a better way. This will result in customer satisfaction and better customer service overall.

Higher employee retention – Effective recruitment and selection process ensures appointing employees who are more suited and motivated for the job. Employees with motivation who enjoy their work are less likely to leave their jobs. For businesses, this means a higher employee retention rate. This is significant because the whole process of recruitment can cost a lot. Having long-term employees mean that employers do not have to spend on recruitment repeatedly.

Recruitment and Selection: Employment contracts

An employment contract is a legal agreement between an employer and an employee. Important details about the job are included, such as salary, duties, holidays, and the duration of the contract. Businesses hire candidates as either full-time or part-time. A full-time employee is usually expected to work five days a week and eight hours a day, whereas part-time employees' weekly working hours are less than 40 hours a week.

There is also another kind of employment contract called a job-share. This is a contract in which two or more people share a part-time job. From duties to salary, everything is divided according to the level of work they are doing.

Finally, there is a zero-hour contract in which the employer is not obligated to give any minimum number of working hours to the employee. Such employees are called into work when there is more work available than usual.

The process of recruitment and selection is crucial for any business. It ensures that the business has the right employees to perform the operational tasks. Financial costs can be saved by using this process effectively. There are many benefits associated with it that have a significant impact on the success of the business.

Recruitment and selection - Key takeaways

  • Employees are responsible for putting in the work to keep the company on the path to achieving its vision and objectives.
  • The procedure of searching, finding, and hiring new employees is called recruitment.
  • Recruitment is needed when a business is new or expanding.
  • Recruitment is done either internally or externally.
  • Recruitment needs identification, job analysis, job advertisement, and the creation of a pool of applicants are all parts of the recruitment process.
  • Selection is about choosing the employees from the pool of applicants who are most suited for the advertised job.
  • Interviews, psychometric tests, and assessment centres are the methods of selection.
  • An increase in productivity, quality products, better quality service, and higher employee retention are the benefits of an effective recruitment and selection process.
  • Full-time and part-time are the two types of employee contracts.

Recruitment and Selection

The procedure of searching, finding, and hiring new employees is called recruitment. 

Selection is about choosing the employees who are more suited for the advertised job from the pool of applicants.

Interviews, Psychometric tests, and assessment centers.

It ensures that the business has the right employees to perform the operational tasks. Financial costs can be saved by using this process effectively. 

In internal recruitment, a company recruits employees from the existing employees. 
In external recruitment, a company wants to hire people from outside the company. 

The three main types of employment contracts are full-time contracts, part-time contracts and zero-hour contracts.

Final Recruitment and Selection Quiz

Question

Define recruitment 

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Answer

The procedure of searching, finding, and hiring new employees.

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Who is responsible for performing the operational tasks in a business?

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Answer

The employees. 

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Why recruitment is required?

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In the case of a new business, expansion, and in case of vacant roles. 

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What does expansion mean? 

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The expansion could be in terms of increasing production or producing different products for new markets. 

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The two types of recruitment 

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Answer

Internal and external 

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What is internal recruitment? 

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Answer

A company recruits employees from the existing employees. 

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What is external recruitment?

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Answer

A company hires people from outside the company. 

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The recruitment process

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Answer

Recruitment needs identification, job analysis, job advertisement, and the creation of a pool of applicants. 

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Define selection 

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Answer

It is about choosing the employees who are more suited for the advertised job from the pool of applicants.

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Methods used in the selection

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 Interviews, Psychometric tests, and assessment centers. 

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Benefits of using effective recruitment and selection process

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Answer

An increase in productivity, quality products, better quality service, and higher employee retention. 

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Question

What is higher employee retention rate? 

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Answer

If fewer employees leave their jobs in a company, it would mean the company has a higher employee retention rate. 

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Types of employee contracts 

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Full-time and part-time. 

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Difference between full-time and part-time contract 

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A full-time contract means working five days a week and eight hours a day. 
A part-time contract means working less than 40 hours a week.  

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Question

What is a psychometric test? 

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Answer

In this test multiple-choice questions are asked from the applicant. This test helps in determining the personality of the applicant. 

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Define recruitment.

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Answer

Recruitment is the process of finding and hiring the best-qualified candidates for a job. 

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What are some recruitment methods?

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Answer

Methods of recruitment include Internal promotion, Career websites, Employee referrals, and Recruitment events.

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What is internal promotion?

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Answer

Promoting vacant job opportunities with the organisation to be filled by qualified employees.

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Posting job openings on career websites are a methods of

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Answer

Recruitment

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Question

If you are working in a firm, and refer someone qualified you know for a vacant job position in the firm, this is called

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employee referral 

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Define the selection process.

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Answer

Selection is a series of steps that help recruiters find the right candidates from a pool of applicants.  

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Question

How do recruitment events help recruitment?


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Answer

Recruitment events are held on college campuses and job fairs. Such events are effective ways of getting to know local talents, and also to increase awareness about the company. 

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Define selection.

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Answer

Selection is a series of steps that help recruiters find the right candidates from a pool of applicants.  

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Question

How do group interviews help the selection process?

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Recruiters assign a task to a group of shortlisted candidates and assess them based on their progress and final results. This will give the recruiters an idea of the candidates' working strategy, their adaptability to work in a team, and also help the candidates understand how the company functions.  

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What is the screening process?

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Sometimes recruiters send the primarily shortlisted candidates a series of tests to assess their qualifications and abilities. These results will help them to further narrow down the candidates to the next step. These tests can include personality tests, intelligence tests, aptitude tests, and so on.  

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Question

What does filtering resumes mean?

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Resumes received are filtered by recruiters by narrowing it down to candidates that have most or all the specified qualities. They look for relevant keywords to make the selection process easier.  

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How does filtering resumes help recruiters?

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It helps to narrow down the number of candidates based on their qualifications.

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Why are background checks important in the selection process?

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They are usually performed by recruiters to make sure that the information that was given by candidates are are actually true.  

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Question

The recruitment process is an integral part of the Human Resource (HR) department.  


True or False?

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Answer

True


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Question

The recruitment and selection processes vary among organisations. 


True or False? Justify your answer.

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True. This is because the job specifications vary among organisations and therefore, the process will also vary accordingly.

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Question

Name the steps involved in recruitment and selection process.

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Answer

Recruitment planning, recruitment strategy, finding the right candidates, screening, tests, interviews, and appointments are the steps involved in the recruitment and selection process.

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This step analyses job specifications, its nature, and required skills and qualifications.

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Answer

Recruitment planning

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The method of hiring (internal or external is decided in the recruitment strategy.

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True

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Name the steps in the selection that help to narrow down the application pool.

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Answer

Screening, tests, interviews.

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What are the types of employment contracts?

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Full-time, part-time, job share or zero-hour contract. 

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Name a few disadvantages of a full-time job.

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  • Monotonous routine.
  • Poor work-life balance.
  • More stress.

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Name a few advantages of a full-time job. 

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Answer

  • Fixed steady income.
  • Paid leave (including sick leaves and maternity leaves).
  • Corporate benefits.
  • More challenging tasks helpful for career growth.

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Helps employer to reduce costs, boosts employee morale and productivity, flexible working hours better work-life balance - these are the advantages of 

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Answer

a part-time job.

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What are the disadvantages of having a part-time job?

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  • Can have a negative effect on employee career growth.
  • Difficulty organizing meetings due to varying working hours.
  • Employees do not enjoy other benefits enjoyed by a full-time employee.

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Job sharing is a type of part-time job.

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True

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Advantages of job-sharing include:


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  • Ideas and inputs from two people.
  • Employer does not incur additional costs.
  • Easier method of completing highly stressful or important work.
  • Higher productivity.

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That if the two employees are not compatible in terms of communication and decision-making process, working together can be a challenge, is a disadvantage of job-sharing.

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True

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State the disadvantages of job-sharing.

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  • If the two employees are not compatible in terms of communication and decision-making process, working together can be a challenge.
  • Supervision can be difficult as the supervisor has to monitor not one, but two employees.
  • Conflicts can occur if the distribution of work is not equal. 

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What are zero-hour contarcts?

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In zero-hour contracts, the employer is not obliged to give the employee regular work, but are on-call in case they are needed to work. Employees under such a contract do not have minimum working hours and are not obliged to take up the work offered.


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What are the advantages of zero-hour contarcts?

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  • Unforeseen absences can be dealt with.
  • Unforeseen extra work can be assigned to zero-hour employees, reducing the stress on regular employees.
  • Flexibility of work.
  • Can present you with the opportunity to work for your dream company, if full-time or part-time positions are not available.

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Disadvantages of zero-hour contracts include:

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  • Being assigned to work at unforeseen hours. 
  • Low and unfixed income.
  • No extra benefits.

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What are some common circumstances in which the company will have to perform recruitment?

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Circumstances such as an expansion of the company, the termination or retirement of staff, etc.

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Recruitment can only be done internally by the company's HR department.

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Answer

False

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Question

_________ is usually done by promoting the existing employees to more senior positions or by transferring them to different departments. 

Show answer

Answer

Internal recruitment

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Question

Senior managers have no say in the internal recruitment process and the decisions are solely made by the HR department

Show answer

Answer

False

Show question

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