A level-readyAll subjects · Business · WBS11 Marketing and people
Recruitment, selection and training
Edexcel IAL Business · WBS11 Marketing and people
Getting the right people and developing them is vital to any business. This lesson covers the recruitment and selection process, internal versus external recruitment, the costs involved, and induction, on-the-job and off-the-job training, with a labour turnover calculation to measure how often staff need replacing.
The recruitment and selection process
1. Identify the vacancy (someone leaves, growth, new skills needed).
2. Write a job description (the tasks, duties and responsibilities of the job) and a person specification (the skills, qualifications, experience and qualities of the ideal candidate).
3. Advertise the job (internally or externally).
4. Shortlist applicants from application forms or CVs.
5. Select using interviews, tests (aptitude, psychometric), assessment centres, presentations and references.
6. Make an offer and agree a contract; then induct the new worker.
Internal versus external recruitment
| Internal (existing staff) | External (outside the firm) | |
|---|---|---|
| Cost and time | Cheaper and quicker | Advertising, agency fees and longer process |
| Knowledge | Already knows the firm and culture | Needs induction to learn the firm |
| Risk | Known track record | Less known, despite interviews |
| Motivation | Promotion motivates staff | Internal candidates may be demotivated if overlooked |
| New ideas | Few new ideas; creates another vacancy | Brings fresh skills and ideas |
| Pool | Limited choice | Wider choice of candidates |
Costs of recruitment, selection and training
- Recruitment: advertising, agency fees (often a percentage of salary), managers' time writing job descriptions and shortlisting.
- Selection: interview time, testing, assessment centres, travel expenses.
- Training: trainers, courses, materials, lost output while training, and lower productivity of new workers while they learn.
These costs explain why retaining staff matters. Labour turnover measures the proportion of staff leaving in a year:
labour turnover (%) = number of staff leaving / average number of staff employed x 100
(Labour turnover is analysed in depth in Unit 3; in Unit 1 it is a useful percentage calculation when a case mentions staff leaving.) High turnover means high recruitment and training costs and lost experience; some turnover brings new ideas.
Types of training
- Induction training: introduces new workers to the business: its rules, health and safety, facilities, people and culture. Helps them become productive quickly and reduces early leaving.
- On-the-job training: learning while doing the job, guided by an experienced worker (shadowing, coaching, mentoring). Cheap, relevant and output continues, but the trainer's output falls and bad habits can be passed on.
- Off-the-job training: training away from the workstation (college courses, external seminars, online courses, in-house training centre). Can teach wider skills and qualifications without distractions, but costly, output is lost and trained staff may leave for better-paid jobs.
Worked example
A restaurant employed an average of 40 staff last year and 14 left. Each replacement cost $1,800 to recruit and train. Calculate labour turnover and the total replacement cost.
- Labour turnover = 14 / 40 x 100 = 35%.
- Replacement cost = 14 x $1,800 = $25,200.
- Comment: high turnover is costly; better induction or pay might retain staff.
Answer: Labour turnover 35%; cost $25,200.
Check yourself
- A call centre has an average of 250 staff. During the year 45 staff left. Calculate labour turnover.
Show answer
18.0 %. 45 / 250 x 100 = 18%.
- A shop started the year with 30 staff and ended it with 34 (average 32). Eight people left. Calculate labour turnover.
Show answer
25.0 %. Average = (30 + 34) / 2 = 32; 8 / 32 x 100 = 25%.
- A firm recruits 6 new engineers. Advertising costs $2,400 in total, interviews $900 per recruit and induction $650 per recruit. Calculate the total cost.
Show answer
$11700. 2,400 + 6 x (900 + 650) = $11,700.
- A document listing the qualifications, skills and personal qualities needed for a job is the
- job description
- person specification
- contract of employment
- induction programme
Show answer
person specification. It describes the ideal person.
- What is the main purpose of induction training?
- To train staff for promotion
- To teach university-level qualifications
- To select between job applicants
- To introduce new staff to the business, its rules and culture so they settle quickly
Show answer
To introduce new staff to the business, its rules and culture so they settle quickly. Induction is for newcomers.
- Explain one advantage of internal recruitment.
Show answer
It is cheaper and quicker because there is less advertising, and the candidate already knows the business and its culture, so needs little induction.. Lower cost, speed, knowledge of the firm, motivation through promotion.
- Which is a disadvantage of off-the-job training?
- It cannot teach new skills
- It must be done at the workstation
- It is only for managers
- It costs more and output is lost while staff are away
Show answer
It costs more and output is lost while staff are away. Courses cost money and staff are not working.
- Why might a business recruit externally for a senior marketing role?
- Because it is always cheaper
- Because it avoids any need for selection
- To bring in new ideas and skills not available within the firm
- To motivate existing staff by promotion
Show answer
To bring in new ideas and skills not available within the firm. External recruitment widens the pool and brings fresh ideas.
Sources
Last updated 8 November 2026. Spotted a mistake? Tell us.