Recruitment, selection & training Lesson objective: To understand the recruitment and selection process To be able to explain internal and external recruitment

Recruitment When businesses hire new employees they need to attract and appoint the best people – those with the right skills and appropriate experience This is called recruitment and selection In a small business this can be done informally, in a large business the HR department is likely to be responsible for recruitment

Reasons for needing new staff The business is expanding and more labour needed People are leaving and need to be replaced Positions have become vacant due to promotion People are required to cover temporary absence, e.g. for maternity leave or long term absence

Video We are going to watch a quick video that runs through the recruitment and selection process for a business, including reasons for hiring and the stages a firm will go through

Recruitment process Identify the type and number of staff needed Prepare job description and person specification Advertise the job using appropriate media Evaluate applicants and select a shortlist for interview Carry out interviews Evaluate interviews and make appointment Provide feedback for unsuccessful candidates Conduct some research into what happens at each of these stages - include definitions of all key terms, e.g. what a job description is, why used etc… how do people usually apply? What assessment methods can a business use etc… THIS NEEDS TO BE DETAILED

Internal and external recruitment You may want to allocate tasks – you have 20 mins You need to conduct research into the following; What is internal recruitment How can a business advertise internally (both small and large scale firms) Advantages/disadvantages of recruiting internally What is external recruitment What are the advantages/disadvantages of recruiting externally What are the following methods of external recruitment and why would they be used Word of mouth Direct application Advertising Private employment agencies Headhunting Job centres Government funded training programmes You need to work in groups of no more than 4 and create a fact sheet that all members of your group could use informing them about internal and external recruitment. I will then photocopy these for you to all have a copy

Internal vs external recruitment Internal (workers already in the business can apply for a new position) External (workers outside of the business can apply) Staff can be attracted to a new position through the company newsletter Workers may be invited to apply for promotion positions New vacancies may be announced in meetings or pinned to notice boards Internal candidates favoured as their track record and skills are already known Internal candidates are already loyal to the business and can be more productive quickly as they don’t have to be inducted Internal candidates will already fit with company culture, no expense of a new person not fitting in, leaving and having to be replaced – therefore less risky and cost effective to recruit Less expensive – no cost of advertising Internal candidates may not have skills set required for a new position – as these might not be able to be trained in. For example a new chemistry teacher would need a degree in science, hard to train up a maths teacher at short notice. Vacancy may have to be advertised externally Fresh candidates bring new ideas and enthusiasm to the business External candidates have not become tired or bored with the business and are enthusiastic so possibly likely to work harder

Costs of recruitment, selection and training At each stage of the recruitment process a business will incur costs. These costs can be significant and underline the importance of retaining staff Recent research puts the average cost for recruiting new staff at around £1,850 per employee There are 2 elements to this cost Lost output while a replacement is found and inducted Process costs of recruiting and selecting a new worker

Costs incurred during recruitment & selection Time (monetary) for HR to plan the recruitment Admin costs of checking job adverts/descriptions, person specs, handling applications etc… Cost of the advert Cost of agency fees for a temp to cover the position until it is filled Cost of the wage of the new employee Loss of productivity while new employee is inducted (on average takes 24 weeks from hiring to optimum productivity) Loss of management time taken up with the recruitment process (can take 10-12 weeks for the entire process) Hidden costs – up to half of al new employees leave in the first year, the average is 20%

Cost of training The costs of training can be so high that businesses can be reluctant to invest heavily in it Some training costs, like Health and Safety are essential and have to be paid for by the business. Other training costs include; Training courses and other resources – external training is very expensive but often more specialised, internal training can also be expensive if you need to purchase special equipment to do it Loss of output – if workers are involved in off-the-job training they will not be producing anything = lower production levels Employees leaving – businesses are likely to be frustrated if they spend a lot of money training someone only for them to leave and work for a rival, some businesses prefer to hire people already trained to avoid this

Training The purpose of training is to help employees to develop existing skills or gain new ones Benefits Costs It increases the level and range of skills available to the business, leading to improvements in productivity and quality It can be expensive, in terms of both providing the training itself and the cost of evaluating its effectiveness It increases the degree of flexibility within a business, allowing it to respond quickly to changes in demand Production may be disrupted while training is taking place, leading to lost output It can lead to a more motivated workforce by creating opportunities for development and promotion Newly trained workers may be persuaded to leave and take up new jobs elsewhere

Task Organise yourselves into 3 groups Your presentation must be no longer than 10 minutes long and all members of the group must participate – there will be a prize for the best one! Organise yourselves into 3 groups Each group is going to be given a type of training. You then need to create a presentation that could be given to the rest of the class including; A definition of your training method – including ways in which it could happen The advantages and disadvantages of your method Reasons for carrying out your method of training Information about the costs of your training method Examples of when your method would be used Any other information you feel is relevant You can include videos/images etc… to make it interesting, you could even set the rest of the class a task to do – you are after all the teacher for this task! Induction, on-the-job, off-the-job

Benefits of training Although its expensive a number of people will benefit from training Person Benefit Managers Workers will be more motivated and satisfied – makes them more co-operative to work with. Workers will be better at their job = easier to manage. Providing training may improve company image, making it easier to recruit and retain staff Owners Productivity could go up as workers will be more efficient = lower costs = competitive edge = increased profits Employees Able to do their jobs more effectively. Makes them more satisfied = better morale = less likely to leave as they feel valued. Enables them to develop skills which will help them get a promotion and/or better job Customers Customers will receive better quality products as less mistakes. Improved customer service due to better quality staff

Five whys and a how Why do some companies offer holiday jobs to university students? Why might a company try to avoid getting a lot of applicants for a job? Why might a company include someone from personnel on a selection panel? Why might one retailer use mainly on-the-job training, while another prefer off-the-job training? Why do some firms go on providing staff training, even for those over 60? How might a large business such as Tesco recruit a new Chief Executive?