A Guide to Understanding Recruitment & Selection in A Business

Recruitment is about finding and hiring qualified individuals to work for companies. It includes identifying the company’s needs for new employees, creating job descriptions, specifying applicant qualifications such as education and skills, attracting suitable candidates through advertisements, screening applicants, and selecting the best.

Reasons for recruitment

Several reasons underlie the company to recruit new employees. First, they must replace employees who resign, retire, or pass away. In other cases, companies may also lay off unproductive employees to increase efficiency and replace them with better ones.

Another reason is expansion. As the company grows, its business and operations expand, and it needs new people to do the job. 

Finally, the reason for hiring is promotion. When someone is promoted, the old position is left vacant, and the company may need a new person to fill it.

Internal vs. external recruitment

When a vacancy arises, companies have two primary strategies to fill it: internal recruitment and external recruitment. Each approach has its own advantages and disadvantages, which influence the ideal choice for a particular position.

The optimal recruitment strategy depends on the company’s and position’s specific needs. External recruitment might be more suitable for roles requiring specialized skills or fresh perspectives. On the other hand, internal recruitment can be a good option for promotions, cost-effectiveness, and boosting employee morale. Businesses should weigh the pros and cons of each approach before making a decision.

Internal recruitment

Internal recruitment fills job vacancies by offering them to existing employees. Internal recruitment may be an option if the business already has the right people with the right skills to do other jobs.

For example, a company appoints an employee for promotion to a higher position, such as a manager, instead of filling it with individuals from outside the company.

This method offers several benefits:

• Cost-effectiveness: Internal recruitment avoids expenses associated with external advertising, consultants, or assessment centers.
• Reduced risk: Companies already have a proven track record of the internal candidates’ skills and capabilities.
• Faster integration: Existing employees are familiar with the company culture and work environment, leading to a smoother and faster transition into the new role.
• Improved morale: Promoting from within can boost employee morale by demonstrating opportunities for career growth within the company.
• Retention: Offering internal promotions can incentivize high-performing employees to stay loyal to the company.

However, internal recruitment also comes with drawbacks:

• Limited pool: The number of potential candidates is restricted to the existing workforce.
• Stagnant innovation: Internal hires may not bring fresh perspectives or new skills to the company.
• Internal disruption: Filling a vacancy internally may create additional openings that need to be addressed.
• Demotivation: If an internal candidate is unsuccessful, it can lead to decreased motivation.

External recruitment

External recruitment fills vacancies with applicants from outside the company. It allows companies to get fresh resources with new ideas. Companies also have more candidates to choose from.

However, the external recruitment process is longer. Choices may also be relatively few due to the company’s poor reputation. The process is also somewhat longer.

Here are some key advantages:

• Fresh ideas & expertise: External candidates can introduce new perspectives, innovative approaches, and specialized skills to the company.
• Wider talent pool: Companies have a larger range of candidates to choose from, increasing the likelihood of finding the best fit for the role.

However, external recruitment also has its downsides:

• Increased costs: External recruitment involves expenses like advertising, agency fees, and potentially longer onboarding processes.
• Lengthy process: Finding, interviewing, and onboarding external candidates typically takes longer than internal recruitment.
• Knowledge gap: New hires may require additional training and support to become familiar with the company culture and specific ways of working.

Recruitment and selection process

The recruitment and selection process usually includes the following activities:

1. Identify needs: It all starts with understanding the company’s needs. This involves determining the number of vacancies, the specific roles required, and the desired skillsets for each position.
2. Make person specification: Following the needs identified, a detailed person specification is created. This document outlines the essential qualities, skills, and experience ideal candidates should possess.
3. Advertise job vacancies: Once the ideal candidate profile is established, the company needs to attract potential applicants. This is done by advertising the job vacancy through various channels, such as online job boards, company websites, or social media platforms.
4. Submit an application form or request a curriculum vitae (CV): Interested candidates submit application forms or CVs that provide information about their qualifications and experience. These documents are the company’s first point of contact for assessing a candidate’s suitability for the role.
5. Collecting and selecting CVs/application forms: The company receives applications from various candidates. These are then collected and reviewed to shortlist those who best meet the criteria outlined in the job description and person specification.
6. Make a shortlist: After reviewing applications, the company creates a shortlist of the most promising candidates. These individuals are then invited to the next stage of the selection process, which often involves interviews and/or skills assessments.
7. Conduct Interviews/tests: Interviews allow companies to delve deeper into a candidate’s qualifications and suitability for the role. Additionally, some companies may utilize various tests to assess specific skills or knowledge relevant to the position.
8. Inform successful candidates: After a thorough evaluation process, the company identifies the most qualified candidate and offers them the position. This can be done through a phone call, email, or formal letter.

Identify needs

The company identifies the needs and available job vacancies, both the number of employees and their qualifications. It starts with doing a job analysis and creating a job description. At this stage, the company also needs to decide whether it is best to recruit internally or externally.

Job analysis is a detailed examination of a company’s jobs. It determines the activities and responsibilities involved in each area, their relative importance to the company, the qualifications required, and the level of performance expected. In recruiting, it also determines which positions require new employees.

Job analysis is important for determining how the company fills vacancies. Through it, companies can identify whether vacant positions need to be filled by new people or not. For example, instead of hiring new people, the company might fill it with existing ones by distributing tasks and jobs among other employees.

A job description describes the position, responsibilities, duties, hours worked, salary, who reports to, and the qualifications or skills required for a particular job. It accompanies job advertisements when companies are looking for candidates.

Make a people specification

The person specification is a crucial document in the recruitment process. It serves as a detailed profile outlining the essential qualities, skills, and experience a company seeks in its ideal candidate for a specific position. This document plays a vital role in attracting the right talent and ensuring a smooth selection process.

Here’s why a well-crafted person specification is important:

• Streamlined screening: By clearly defining the required qualifications, companies can efficiently pre-screen applicants. This saves them time and resources by focusing their attention on candidates who possess the necessary skills and experience for the role.
• Targeted applications: A clear person specification benefits job seekers as well. By outlining the desired qualities, it allows them to identify suitable vacancies that align with their qualifications and career goals. This reduces the likelihood of applying for positions they’re not a good fit for.

In essence, the person specification acts as a bridge between the company’s needs and the applicant pool. It ensures companies attract qualified candidates and empowers job seekers to find relevant opportunities that match their skill sets.

Advertise job vacancies

Companies prepare job advertisements to attract as many potential candidates as possible to be recruited. It communicates the job description and person specifications required by the company to potential candidates.

• A job advertisement is an advertisement for job vacancies in a company. It is written in an engaging tone and contains information not only about the vacancy but also about the company and its benefits.

Ad placement can be through various media, perhaps through newspapers or company websites. Cost and effectiveness will usually be a consideration.

In other cases, the company may decide to process applications externally. In this case, it hired a recruiting agency to handle the application process for it.

Submit an application form or request a curriculum vitae (CV)

Companies ask candidates to submit a curriculum vitae (CV) for selection. A CV usually accompanies a cover letter explaining the candidate’s interest in the position.

The CV format varies between candidates, so to obtain an objective and comparable assessment among candidates, companies complete it with an application form.

The company sends the application form to the candidate to fill out. It consists of questions prepared and pre-defined by the company, which allows the company to dig deeper into the candidate.

Application forms are important to make it easier to compare potential candidates and ensure employers get all the information they need from candidates.

Collect and select CVs/application forms

At this stage, the company collects application forms and CVs from all candidates. Both describe personal information about a candidate.

Both are used to screen candidates at the beginning before going to the next stage. Employers use it to compare a candidate’s skills and qualities to those listed in the people specification.

Make a shortlist

Employers compare the information in application forms and CVs with people’s specifications and job descriptions. The company selects which candidates meet the qualifications and which do not.

The company then compiles a list of the most suitable candidates for the next stage, which is interviews and testing.

This stage is important to save time and money. Interviewing every candidate who applies is too expensive and time-consuming. Thus, creating a shortlist is intended to reduce the number of candidates to be interviewed.

Conduct interviews and tests

Interviews allow companies to get to know candidates better by asking them questions. In addition to face-to-face interviews, interviews may be conducted via telephone or video call, such as Skype.

The interview can go through a one-to-one interview where one person interviews a candidate. Alternatively, the interview could be a panel where more than one person interviews a candidate.

Interviews offer several advantages. First, companies identify more deeply the candidate’s personality. Second, it allows the company to clarify further the information provided in the application form. Third, candidates have the opportunity to ask questions because communication can be two-way.

But interviews also take time. In addition, the candidate may react poorly because the interview can create a stressful situation, preventing the best candidate for the job from being selected.

This stage also usually involves the candidate going through tests such as:

• Aptitude tests to see a candidate’s potential to perform specific job-related tasks.
• Achievement tests to explore what the candidate knows and can do.
• Psychometric tests assess the candidate’s personality, attitude, and character.
• Intelligence tests to see if the candidate has the required mental abilities, e.g., analytical abilities.
• Group situational tests to observe the candidate’s performance during team assignments.

Testing is vital because it allows employers to discover a candidate’s personality and abilities. It will provide a more thorough and objective insight into the candidate, not just what they say about themselves.

Interviews and testing may involve external parties or assessment centers. Companies ask candidates to be tested and interviewed at a designated assessment center. It could take a day or more.

Inform successful candidates

After the selection process is complete, the company gets a successful candidate. The company will inform them by phone, email, or letter. For internal recruitment, internal candidates can be notified directly.

Employment contract

Once a company has identified the perfect candidate, the final step of the recruitment process involves formalizing the agreement. This is achieved through an employment contract, a legally binding document outlining the rights and responsibilities of both the employer and the employee. An employment contract is a written agreement between an employer and a worker that explains both parties’ duties, rights, and responsibilities.

Why employment contracts matter

Employment contracts are important for several reasons. First, it clarifies the agreed terms and conditions for both parties (employer and employee).

On the one hand, employers know what to expect from new employees, including their duties and roles. On the other hand, employees understand their rights and obligations.

Second, the employment contract becomes a reference if there is a dispute about the terms and conditions of work. It becomes the cornerstone for resolving any work dispute.

Third, the employment contract allows for avoiding heavy fines or penalties. The employment contract is legally binding. Thus, there are consequences if the employer or employee violates the agreement.

Employment contract elements

Before diving into the specifics of the contract, it’s helpful to understand the general expectations of both employers and employees:

• Employee expectations: Employees typically seek fair compensation, reasonable working hours, a positive work environment, fair treatment from management, opportunities for training and development, and potential for career advancement.
• Employer expectations: Employers generally expect employees to be punctual, work diligently, collaborate effectively with colleagues, adhere to company policies and instructions, and demonstrate loyalty and commitment to the organization.

Employment contract elements

The employment contract serves as a roadmap for the employment relationship. It typically includes the following details:

• Parties involved: The contract clearly identifies the employer and the employee.
• Job details: The specific job title, start date, and a description of the role’s duties and responsibilities are outlined.
• Contract duration: The contract specifies whether the position is part-time, temporary, or full-time.
• Terms and conditions: This section details key aspects such as working hours, leave policies, salary and benefits, and procedures for termination of the contract.
• Disciplinary procedures: The contract outlines the process for addressing disciplinary matters and employee conduct.
• Communication protocols: The contract typically details notification requirements for changes in employment status or other important information.

How the employment contract ends

An employment contract establishes the terms and conditions of an employment relationship, but it doesn’t last forever. Here are the various ways an employment contract can come to an end:

• Resignation: In many cases, an employee may choose to leave the company for another job opportunity. They typically submit a formal letter of resignation, providing notice as stipulated in the contract.
• Reaching retirement age: Some employment contracts may have a set retirement age, at which point the contract automatically terminates.
• Breach of contract: If an employee seriously violates the terms of the employment contract, such as misconduct or poor performance, the employer may have grounds for dismissal. This will be outlined in the contract’s disciplinary procedures.
• Employee-initiated termination: In some rare situations, an employee may have reason to terminate the contract due to a significant breach by the employer, such as unsafe working conditions or failure to uphold agreed-upon terms.
• Fixed-term contracts: Some employment contracts, such as temporary projects, are established for a specific duration. Once the contract period ends, the employment relationship naturally concludes.
• Promotion or job shift: If an employee receives a promotion or takes on a significantly different role within the company, the original employment contract may no longer be applicable. In such cases, a new contract reflecting the updated position will likely be drawn up.

Types of employment contracts

There are different types of employment contracts, including:

• Permanent contract
• Zero-hour contract
• Part-time contract
• Flexible contract

Permanent contract

Permanent contracts, also known as indefinite contracts, establish a long-term employment relationship without a predetermined end date. Termination can occur at the initiative of either the employer or the employee. This type of contract typically provides stability and security for employees, often accompanied by comprehensive benefits packages and opportunities for career development within the organization.

Zero-hour contract

Zero-hour contracts offer employees a high degree of flexibility in their work schedules. However, there is no guaranteed minimum number of hours. Employees are only compensated for the specific hours they are called upon to work, which can vary significantly. This approach can be beneficial for both employers seeking adaptable staffing solutions and employees prioritizing schedule flexibility. However, it can also lead to income uncertainty for the employee.

Part-time contract

Part-time contracts offer a reduced work schedule compared to full-time positions. While there’s no universally agreed-upon definition for the exact number of hours constituting part-time work, it typically falls below 35 hours per week. This type of contract allows individuals to achieve a healthy work-life balance by accommodating other commitments such as education, family care, or personal pursuits.

Flexible contract

Flexible contracts provide employees with work schedules that can be adjusted to accommodate both the employer’s operational needs and the employee’s individual preferences. This might involve structured arrangements like working specific days or times of the week or offering some control over start and finish times. Flexible contracts can be particularly advantageous for those seeking to balance work with personal priorities or those with specific scheduling constraints.

Part-time vs. full-time: weighing the considerations

Both part-time and full-time employment contracts offer distinct advantages and disadvantages for employers and employees alike. Here’s a breakdown of the key considerations for each approach:

Part-time contracts: a strategic approach for employers

• Cost-effectiveness: Part-time employees typically don’t qualify for full benefits packages, leading to lower overall employment costs for companies.
• Adaptable workforce: A part-time workforce allows employers to scale staffing levels up or down in response to fluctuating business demands.
• Talent pool access: Part-time positions can attract individuals seeking work-life balance or those who cannot commit to full-time schedules due to other obligations.

Challenges associated with part-time employment (for employers):

• Investment in training: Part-time employees may receive less extensive training compared to full-time staff, potentially impacting overall productivity.
• Knowledge and familiarity: Because they spend less time in the company, part-time employees may be less knowledgeable and familiar with company operations and culture.
• Collaboration challenges: Coordinating tasks and ensuring seamless collaboration between part-time and full-time employees can be more complex.
• Employee loyalty: Part-time employees may demonstrate lower attachment to the company due to less significant investment and easier opportunities to find other work with flexible hours.

Full-time contracts: building a skilled workforce

• Skilled and experienced workforce: Full-time employees typically receive more comprehensive training and development, leading to a more skilled and productive workforce.
• Enhanced employee commitment: Full-time employees often demonstrate greater commitment and loyalty to the company due to a more significant investment in their role.
• Reduced supervisory needs: Experienced full-time employees may require less supervision compared to part-time staff who are still learning the ropes.
• Improved work quality: With more experience and training, full-time employees may make fewer mistakes, improving overall work quality.

Considerations for employers with full-time contracts:

• Increased costs: Companies need to factor in the cost of benefits packages and potentially higher salaries associated with full-time positions.
• Limited innovation: Relying solely on a full-time workforce may restrict the influx of fresh ideas and perspectives that new recruits can bring.
• Work-life balance challenges: Full-time work schedules can make it challenging for some employees to achieve a healthy work-life balance.

Technology in recruitment and selection

The modern recruitment landscape has been significantly reshaped by the strategic integration of technology. This evolution has not only transformed how companies find and hire top talent but has also yielded significant efficiencies and cost savings. Let’s delve into some of the key technological advancements impacting the recruitment and selection process:

• Expanded reach and cost optimization: the internet has revolutionized job advertising. Online job boards and company career websites allow organizations to cast a wider recruitment net, reaching a geographically diverse pool of qualified candidates. This expanded reach, compared to traditional print media, translates to significant cost savings for employers.
• Facilitating virtual interactions: Video conferencing tools like Skype have become commonplace in the recruitment process. These platforms enable face-to-face interviews regardless of geographical location, fostering greater flexibility and reducing travel expenses for both employers and candidates.
• Streamlined application processes: Online application forms have replaced paper-based systems, streamlining the application process for both parties. These online forms not only reduce administrative burdens and printing costs for companies but can also be designed to collect and store candidate information for future reference efficiently.
• Automated assessments and testing: Online assessments and tests can be seamlessly integrated into the selection process, offering greater flexibility for both employers and candidates. Candidates can complete assessments at their own convenience, eliminating scheduling constraints, while employers benefit from a more standardized and efficient evaluation process.
• Candidate Relationship Management (CRM) systems: Applicant Tracking Systems (ATS) and CRM systems empower companies to create centralized databases for managing candidate information. These systems streamline communication with applicants, facilitate talent pool management, and allow employers to track promising candidates for future opportunities.

In conclusion, technology has become an indispensable asset in the recruitment and selection process. By leveraging these advancements, organizations can attract a wider range of qualified talent, optimize workflows, and make more informed hiring decisions that contribute to long-term business success.