4.1 Recruiting 4 P EOPLE IN B USINESS 4.1 R ECRUITING Can you solve these proverbs? HTAGT / / / / Clue: a new employee turns up on day one and then not afterwards BCBC / ‘ - / - - / Clue: a firm with a bad reputation might find it hard to get good quality staff Can you use these problems to explain issues relating to people in business?

4.1 RECRUITING  In this topic you will learn about  The need for recruitment  Recruitment methods  Remuneration  Monetary and non-monetary benefits 4.1 R ECRUITING When might your school or college need to recruit new staff? Do you know how they recruit new staff?

THE NEED FOR RECRUITMENT Human Resource Management (HRM) involves using the workforce of the company in the most productive way. One element of HRM is the identification of employee positions and the process of attracting the right calibre of worker to fill these positions (recruitment). 4.1 R ECRUITING What does the word ‘calibre’ mean? Can you think of alternative words to use here?

THE NEED FOR RECRUITMENT A firm will recruit new workers for a variety of reasons:  A growing business  Replacing an employee who has left  New skills required in the business  Increased workload at the business  Covering positions on a temporary basis 4.1 R ECRUITING What is meant by a temporary basis? Why might a firm need to cover a position on a temporary basis?

FULL-TIME v PART-TIME – THE BENEFITS 4.1 R ECRUITING Full-timePart-time Less spent on recruitmentRetaining valued workers Less spent on trainingIncreased flexibility Reduced span of controlWider pool of workers Increased security for workersReduced absenteeism Employees more committedEasier to respond to change New workers may be: Full-time – considered to be over 35 hours a week Part-time – less than 35 hours a week Go through each benefit in turn and see if you can add an explanation as to WHY it is a benefit. This is an important skill for gaining good grades in the examination.

R ECRUITMENT 4.1 R ECRUITING Bibi runs a luxury chocolate shop, she works full time in the business herself and employees 2 part time assistants to help at weekends. One of her assistants, JD, is a college student who also works extra hours at busy times such as Easter and Christmas. JD is about to go to University and has asked Bibi if she would continue to employ him when he is home from University for key holidays. Bibi thinks it might be time for her to spend less time working in the shop herself, allowing her to focus on management. She wonders whether she should replace JD with a full time member of staff. Question time 1.Explain the difference between full time and part time employees. (3 marks) 2.Explain 1 benefit to Bibi of employing part time workers. (2 marks) 3.Explain 1 benefit to Bibi of employing JD during his holidays. (2 marks) 4. Do you think that Bibi should replace JD with a full time or part time member of staff? Justify your answer. (6 marks)

RECRUITMENT METHODS Recruitment could be:  internal - appointing an existing employee  external – appointing an employee from outside of the business 4.1 R ECRUITING Internal RecruitmentExternal Recruitment Lower recruitment costsWider pool of workers Greater promotion prospectsFresh ideas Employees know the businessMore talent to choose from Abilities of workers already known to the business No need to fill vacancy created through internal recruitment

RECRUITMENT METHODS Recruitment Methods include:  Personal recommendation – personal contacts e.g. friends can act as a reference for new employees as they have an insight into the skills or integrity of a potential new recruit  Advertising – smaller firms will advertise locally to reduce costs e.g. Local newspapers or job centres  Interviewing – this enables the firm to select the best worker for the job 4.1 R ECRUITING

R ECRUITMENT METHODS 4.1 R ECRUITING Team task Use a local newspaper to find 4 different job advertisements. 1.Stick these to a large sheet of paper and label the common features of these adverts. 2.Write next to each advert whether or not internal recruitment might be an option or not for that position and justify your decision. 3.Can you identify the reason for the need to recruit in each case? 4.Select 1 of the 4 jobs. 5.What calibre of person would you be looking for? 6.Write a list of questions you would ask a candidate in an interview for this job.

R ECRUITMENT METHODS 4.1 R ECRUITING Bibi has decided that she needs to recruit a part time person to replace JD whilst he is at university and is looking to recruit a full time assistant to give her more free time. She also wants to investigate the idea of opening a second store. JD has suggested to Bibi that she meets his sister Carol who is about to start her A-Levels at college and is looking for a part time job. Question time 1.Identify 2 reasons why Bibi needs to recruit new staff. (2 marks) 2.Explain 1 benefit to Bibi of meeting Carol. (2 marks) 3.Explain 1 drawback to Bibi of meeting Carol. (2 marks) 4.Explain an appropriate recruitment method for Bibi to attract a full time employee? (4 marks)

I NTERVIEWS  An interview is a 2 way process  Both the interviewer and interviewee get to meet, work out if they are right for each other and ask questions  What do you think are the advantages and disadvantages of using interviews as a recruitment method?  Would you appoint someone without meeting them?  Would you accept a job without meeting the boss? 4.1 R ECRUITING

REMUNERATION Remuneration is the money paid or benefits given to a worker in return for their services Monetary (pay awards) benefits include:  Pay – wages and salaries  Pension payments – pay given to workers after they have retired. Firms will make contributions to an employee pension plan  Bonuses – payments for reaching certain targets 4.1 R ECRUITING Can you explain the difference between a wage and a salary? Which would you prefer to be paid in the future? Why?

REMUNERATION Remuneration is the money paid or benefits given to a worker in return for their services Non-monetary (fringe) benefits include:  Private health care  Company car  Discounts for buying company products  Sports facilities  Social facilities e.g. company bar 4.1 R ECRUITING

REMUNERATION The level of wages/salaries paid to workers will be determined by a number of factors:  Level of skills and experience needed for a job  The number of people with the required skills  A comparison of pay within the region  A comparison of pay within the industry  The state of the economy  Higher demand for workers or a lower supply of workers will lead to higher wages. 4.1 R ECRUITING Discussion time Is it right that a premier league footballer gets paid £ a week?

H OW MANY WORDS BEGAN WITH R?  R _ _ _ _ _ _ _ _ _ _  The whole topic  R _ _ _ _ _ _ _ _  Keeping valued workers  R _ _ _ _ _ _ _ _ _ _ _  Monetary and non monetary rewards  R _ _ _ _ _ _ _ _ _ _ _ _ _  Personal suggestion for a new employee 4.1 Can you think of any others?

5 M INUTE T EST  Identify 2 causes of a need to recruit  State 2 advantages of internal recruitment  State 2 advantages of external recruitment  State 2 methods of recruitment  Distinguish between a full time and part time member of staff  State 2 advantages of part time staff  What is meant by remuneration? 4.1 R ECRUITMENT End