Page 109 - Cambridge IGCSE Business Studies

8: Recruitment, selection and training of workers

Recruitment of new workers can be time-consuming and costly. However, it is
important that the business recruits the right people because if it fails to do so, it
will have to go through the whole process again.

KEY TERMS Difference between internal and external recruitment
When a business has a job vacancy to fill it can look for someone in its existing

Internal recruitment: filling a
workforce – internal recruitment – or search outside the business – external
vacant post with someone already
employed in the business. recruitment.
External recruitment: filling a
vacant post with somebody not Internal recruitment
already employed in the business. A business may decide that it already has the right people with the right skills to
do the job. If so then instead of filling a job vacancy by employing someone from

outside, they can choose someone who already works for the business.

The main advantages of internal recruitment are:
■ The vacancy can be filled more quickly and more cheaply.
■ Applicants already know how the business works.
■ The business already knows the strengths and weaknesses of applicants.
■ Workers can become more motivated when they see that there is a chance
of promotion.

There are limitations to internal recruitment including:
■ A better candidate may have been available from outside the business.
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■ It could cause conflict within the workplace if other internal candidates feel they
should have got the job.
■ It does not bring in any new ideas.
■ There will still be a vacancy to fill, unless the worker’s previous job has become
redundant.

External recruitment
If a business decides that none of its current employees has the necessary skills

or expertise to fill a vacancy, or they want to increase the choice of candidates for
a job, then they will use external recruitment. This does not mean that current

employees cannot apply for the job and might even be successful in getting the
job. Businesses that are growing rapidly, or who have a high labour turnover will

frequently use external recruitment to fill job vacancies.

The main benefits to a business of external recruitment are:
■ External applicants might bring new ideas and this can improve the eff ectiveness

and efficiency of the business.
■ There will be a wider choice of applicants with different skills and experience.

■ It avoids the risk of upsetting workers when someone who is internal is promoted.
The limitations of external recruitment include:

■ It takes longer to fill the vacancy.
■ It is more expensive than internal recruitment because of advertising costs and the
time spent interviewing candidates.
■ External applicants will need induction training, which increases their expenses.