Syllabus Edition

First teaching 2025

First exams 2027

Recruiting & Selecting Employees (Cambridge (CIE) IGCSE Business): Revision Note

Exam code: 0450, 0986 & 0264, 0774

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

The recruitment process

  • Recruitment is the process of attracting and identifying potential job candidates who are suitable for a vacant role

    • Recruitment activities include job advertising, job fairs, social media outreach and referrals from current employees

Reasons why vacancies arise

Flowchart depicting reasons for job vacancies: business growth, employee departure, reorganisation of structure, and new business operation.
Vacancies can arise for reasons including business growth, employees leaving and reorganisation
  • During periods of business growth, more employees are needed as the business expands its operations

  • When an employee leaves their job and needs replacing

  • Businesses often reorganise their organisational structure, which may result in the need for additional staff

  • A new business start-up needs to recruit workers for the first time

  • Businesses can choose to use a recruitment agency to carry out the recruitment and selection process on their behalf

    • New employees may be found quickly from its pool of available talent

    • Management time can be saved

    • Recruitment agencies usually charge a finding fee for their specialist services

  • Online recruitment has become increasingly popular, with sites such as LinkedIn and Indeed helping businesses to share vacancy details and compare applicants

Stages in the recruitment process

Flowchart with three arrows: "Define the role," "Determine the source," and "Advertise," on a light blue background.
The recruitment process starts by defining the role for which a vacancy exists

Step 1: Define the role

  • Businesses should determine exactly what is required and part of that is developing a job description and a person/job specification

    • A job specification (sometimes known as a person specification) outlines the qualifications, skills, experience, and personal qualities required from a candidate for a specific job e.g. problem solver, good communicator, able to code in Java etc.

    • A job description outlines the duties, responsibilities, and requirements of a particular job

Comparing a person specification with a job description 

Job specification 

Job description

  • Details the essential and desirable characteristics of the person suitable for the job including

    • Qualifications

    • Experience

    • Skills such as the ability to drive or IT capabilities

    • Personal characteristics and attributes

  • Details the features of the job including

    • Duties

    • Hours and location of the job

    • Managerial or supervisory responsibilities

    • Pay and conditions

 

Step 2: Determine the source of employees

  • Internal recruitment involves a business promoting or redeploying workers that already work for them

Advantages and disadvantages of internal recruitment

Advantages

Disadvantages

  • Internal recruitment saves time and money because there is no need for advertising or basic training

  • It can create jealousy or tension among employees who are not chosen for the role

  • It improves staff morale as employees see opportunities for promotion and career growth

  • It limits the number of applicants, which may reduce the chance of finding new ideas or skills

  • The employee already understands how the business works, which means they can start the new role more quickly

  • Promoting someone internally can leave a gap in their old position that still needs to be filled

  • External recruitment involves bringing in new workers from outside of the business

    • External recruitment can bring fresh ideas, experiences and perspectives to the organisation

Advantages and disadvantages of external recruitment

Advantages

Disadvantages

  • External recruitment brings in new ideas, skills and experience that may help improve the business

  • It is often more expensive because of costs related to advertising, recruitment agencies, and training

  • The business has a wider choice of applicants, which increases the chances of finding the best person for the job

  • It takes more time to recruit and train someone who is new to the business

  • It can help increase diversity by bringing in people from different backgrounds

  • New employees may take time to adjust or may not fit well with the existing team or business culture

 Step 3: Advertise the role

  • Roles may be advertised internally or externally

    • If the business is seeking an internal candidate, business newsletters, staff noticeboards or internal email can be used to display job advertisements

      • Line managers may be asked to recommend suitable candidates following appraisals

    • External candidates can be targeted with advertisements in newspapers, industry magazines, specialist recruitment websites, agencies and government-run agencies such as Job Centres

      • Existing employees may be asked to nominate people they know for roles , sometimes receiving a reward if their nominee is successfully recruited

      • Headhunting can be used to fill high-level roles

      • Businesses with a strong social media presence can use these platforms to advertise cost effectively e.g. Facebook, LinkedIn, TikTok

      • Specialist recruitment portals may be used to advertise, such as The Times Educational Supplement, one of the main publications and websites in the UK used to recruit teaching staff

Examiner Tips and Tricks

Avoid mixing up a job description and a person specification – one explains the role, the other describes the qualities and skills of the applicant

Selection methods

  • The selection process involves receiving applications, shortlisting candidates and choosing the most appropriate person(s) for the role

Receiving applications

  • The business may accept applications from candidates via Curriculum Vitae (CV) and covering letter or application form

  • Once applications have been received, the business shortlists suitable candidates

    • Candidates who best meet the essential and desirable criteria for the job opening in question are invited to the next stage of the recruitment process

Comparing application methods

Application form

Curriculum vitae (CV)

Covering letter

  • A standardised form designed by the recruiter to collect the same details from each candidate

  • Responses are collected in a consistent formatand comparison is straightforward

  • A large volume of candidates can be narrowed down for interview

  • A professional document compiled by the applicant

  • Details career experience, key skillsand strengths

  • Includes qualificationsand character/professional referees

  • Provides contact details for the recruiter to get in touch with the applicant

  • A letter that accompanies the candidate's application form or CV

  • Gives reasons for submitting an application

  • Draws attention to the applicant's particular suitability for the role

  • Allows recruiters to sift applications without having to compare detailed application forms/CVs

Selection methods

  • A variety of methods can be used to select the right worker for the role

Interviews

  • Interviews are commonly used to meet with candidates

A man and woman in business attire are having a serious discussion at a table, with a laptop and open book in front of them.
  • They usually include a face to face, telephone or online discussion between a manager and the candidate about their suitability for the role

    • It is important to prepare a set of relevant questions to ask all candidates and to ensure that the interview is conducted in a fair and consistent manner

    • Interview questions may focus on 

      • Skills and experiences that are relevant to the job

      • Successes and failures - and how these were overcome

      • Personal interests and experiences

Selection tests

  • Candidates may be asked to undergo a test to demonstrate their skills and suitability for the job

  • Candidates may be asked to complete tests individually or within groups to assess how they may work as part of a team

  • The different types of tests may include:

    • Skills tests (e.g. numeracy) show the ability of candidates to carry out certain tasks

    • Aptitude tests show the candidate’s potential to improve or increase their skills

    • Intelligence tests are used to assess the candidate’s ability to work at a desired level

    • Personality tests are used to identify desired characteristics or traits such as the ability to work effectively in a team

Assessment centres

  • Assessment centres bring together a group of candidates to take part in a range of activities over a day or more

  • Candidates may be observed completing tasks such as

    • Group discussions

    • Problem-solving exercises

    • Presentations

    • Role-plays

  • This method allows employers to assess a range of skills like communication, teamwork, leadership and decision-making

  • Assessment centres are especially useful when selecting for senior or important roles

References

  • This involve contacting people who have worked with the candidate before, such as previous employers or teachers

  • References provide information about the candidate’s past performance, attitude, reliability and behaviour

  • They help to check that the candidate is honest about their experience and suitable for the role

  • They are usually collected after interviews but before making a final job offer

Choosing who to employ

  • The final decision of which applicant to employ depends on several factors

  • Even when a suitable candidate is identified, the business will need to think about whether it can finalise their appointment 

    • Can the business fulfil the applicant's pay and conditions demands?

    • Can appropriate fringe benefits be offered?

    • Are attractive development opportunities available to the applicant?

Factors used to select the best applicant

Factor

Explanation

Experience

  • Which applicant has the most relevant work experience?

  • How might broader experiences help an applicant succeed in a specific role?

Qualifications

  • Are formal qualifications essential for filling the post?

    • E.g. A teacher may require a degree in their specialist subject, whilst a retail store manager's experience is likely to be more relevant than formal qualifications

Internal or external candidate

  • How important is it that the applicant already has a good understanding of how the business operates?

  • Time may be saved on induction training and productivity may reach expected levels sooner than with an external candidate

  • How important is it that the new worker has experience and skills gained from outside the business?

  • New ideas, insights into competitor activities and different ways of working could contribute towards a business's competitive advantage

Gut feeling

  • Will the worker 'fit' in with the business's culture and values?

Case Study

Recruiting For A Children's Bookshop

  • A small children's bookshop business has received two applications for its advertised sales assistant role

  • The shop owner is keen to select a knowledgeable candidate who is capable of delivering good customer service, communicating effectively with its (often young) customers and being willing to support administrative tasks such as banking cash

  • Which of these two applicants would likely be appointed?

choosing-between-candidates-1

Applicant analysis

  • Amira scored better in the assessment tests. She was nearly 20% better in communication

  • Amira has had two weeks experience of working with kids, which will suit this role nicely

  • Amira also has a first aid qualification, which is a useful skill when working with kids

  • Overall, Amira is a better fit for the role advertised

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.