Employees can be recruited internally or externally. The recruitment process is as follows;
Identification of job vacancy
Job analysis, where a job description is written
Job specification, where a person specification is written to determine the qualification and experience needed for the job
Job advertisement - Job details are circulated to invite application
Job application - Potential hires submit application
Shortlisting - Applicants are filtered and shortlisted to advance to interview stage
Job interview - Applicants are interviewed
Job offer - Selected applicants are given an offer and employment contract
Job acceptance - Applicants decides to accept or not accept employment offer. If they accept, they will sign the employment contract.
Both internal and external recruitment undergo a similar process with the exception that potential candidates will be from the pool of existing employees if it is an internal recruitment. As such internal recruitment will reduce cost as there will be no need to advertise the job vacancies. Internal recruitment will also enable promotion, which could increase employee motivation. However, the firm may benefit from external recruitment as they are able to share new ideas and experiences to improve the business.
Job vacancies can be advertised in newspapers, online job portal, magazines, posters, using recruitment agency or word of mouth. Recruitment can be expensive if recruitment agency is engaged, or advertising in newspaper compared to online job portals.
RELATED CONCEPTS
Internal Recruitment
External Recruitment
PAST YEAR QUESTIONS
Should you retain or recruit new employees (6 marks) May/June 2018/12
Do you think a newspaper is the best way to advertise the new job? Justify your answer (6 marks) Oct/Nov 2018/12
Identify two ways a business could advertise a new job vacancy (2 marks) May/June 2020/13
Identify and explain two methods when choosing a new manager (4 marks) Oct/Nov 2018/12