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business recruitment
What is recruitment?
Recruitment is an important part of a business' human resource planning.
In all businesses, people are a vital resource - and they need to be managed as such.
The overall aim of the recruitment and selection process is to obtain the number and quality of employees that are required in order for the business to achieve its objectives.
There are three main stages in recruitment:
(1) Identify and define the requirements. This involves the preparation of job descriptions, job specifications and person specifications
(2) Attract potential employees - there are various methods for doing this - which are described in a separate revision note
(3) Select and employ the appropriate people from the job applicants
It is important to appreciate that recruitment is a continuous process - because of:
- Staff departures (e.g. retirements, sackings, resignations)
- Changes in business requirements (e.g. new products, markets, expanded operations)
- Changes in business location (a relocation often triggers the need for substantial recruitment)
- Promotions
Recruitment is becoming more and more important in business. In particular, this reflects the increasing need for a well-motivated and flexible workforce that requires less management supervision.
What is external recruitment?
This refers to the filling of job vacancies from outside the business (contrast with internal recruitment). Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover.
How is it done?
There are several ways of looking for staff outside the business:
Employment / recruitment agencies
These businesses specialise in recruitment and selection. They often specialise in recruitment for specific sectors (e.g., finance, travel, secretarial). They usually provide a shortlist of candidates based on the people registered with the agency. They also supply temporary or interim employees.
The main advantages with using an agency are the specialist skills they bring and the speed with which they normally provide candidates. They also reduce the administrative burden of recruitment. The cost is the high agency fees charged - often up to 30% of the first year wages of anyone employed.
Headhunters / Recruitment Consultancies
"Upmarket" recruitment agents who provide a more specialised approach to the recruitment of key employees and/or senior management. They tend to "approach" individuals with a good reputation rather than rely on long lists of registered applicants - often using privileged industry contacts to draw up a short list. The cost of using a headhunter or recruitment consultant is high.
Job centres
Government run agency - good for identifying local candidates for relatively straightforward jobs. The job centre service is free to employers and is most useful for advertising semi-skilled, clerical and manual jobs.
Government Funded Training Schemes
There is a variety of government funded schemes that provide potential recruits, including the New Deal and Modern Apprenticeships. The advantage of these schemes is that government funding lowers the cost of employment and the business can get to know the employee before committing for the long-term. However, relatively few employment requirements are covered by these schemes.