Recruitment (SQA National 5 Business Management): Revision Note

Exam code: X810 75

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

Evaluating the use 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

Evaluating the use 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 thinking recruitment is just hiring staff. It’s a planned process - identifying a vacancy, advertising, and selecting the right person

Examiners like when you show why each step matters, such as attracting suitable applicants and avoiding costly hiring mistakes

Internal and external recruitment

  • Internal recruitment is the appointment of a suitable candidate who already works for the business

  • External recruitment is where a new employee is appointed from outside the business

  • Businesses often use a combination of internal and external recruitment methods, depending on the nature of the job and the availability of suitable candidates

    • The method chosen will also depend on the organisation's goals, the level of the position being filled and the industry in which it operates

Advertising the vacancy

  • After producing the job description and person specification when a vacancy arises, the business can advertise the role internally, externally, or a combination of both

    • In order to advertise the vacancy, the business must produce a job advertisement that includes

      • Brief details of the job and characteristics of desired applicants

      • How to apply for the job

Examples of job advertisements

Job board displaying vacancies for support worker, trainee hairdresser, fashion models, and café staff. Includes contact details and job descriptions.
Job advertisements are designed to attract interest and encourage candidates to apply for roles

Advertising vacancies internally and externally

Advertising internally

Advertising 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

    • E.g. A new project management role within the organisation may be advertised in the weekly staff newsletter 

  • Recruiting internally may mean workers do not need induction training and are highly productive relatively quickly

  • A further vacancy is created when a worker moves into their new role

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

  • Existing employees may be asked to nominate people they know for roles - sometimes they receive a reward of their nominee is successfully recruited

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

  • New skills, experiences and ideas are introduced to the business

  • Some methods such as advertising in the mass media are expensive and it can be difficult to target the desired audience

  • If a business needs to recruit quickly or if it is struggling to find the right employee it may use a recruitment agency to carry out the advertising and recruitment process on their behalf

    • New employees may be found quickly through a recruitment agency which has potential candidates already enrolled

    • It can be expensive as businesses have to pay a fee for these services

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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.