1 Starting a Business

Can you solve these proverbs?
HTAGT
----/-----/---/----/-------Clue: a new employee turns up on day one and then
not afterwards
BCBC
-------/---‘-/--/-------Clue: a firm with a bad reputation might find it hard to
get good quality staff
Can you use these problems to explain issues relating to people
in business?
4 P EOPLE IN B USINESS
4.1 RECRUITING
4.1

RECRUITING
In this topic you will learn about

The need for recruitment

Recruitment methods

Remuneration

Monetary and non-monetary benefits
When might your school or college need to recruit new staff?
Do you know how they recruit new staff?
4.1 RECRUITING
THE NEED FOR RECRUITMENT
Human Resource Management (HRM) involves
using the workforce of the company in the most
productive way.
One element of HRM is the identification of
employee positions and the process of attracting
the right calibre of worker to fill these positions
(recruitment).
What does the word ‘calibre’ mean?
Can you think of alternative words to use here?
4.1 RECRUITING
THE NEED FOR RECRUITMENT
A firm will recruit new workers for a variety of
reasons:
4.1 RECRUITING

A growing business

Replacing an employee who has left

New skills required in the business

Increased workload at the business

Covering positions on a temporary basis
What is meant by a temporary basis?
Why might a firm need to cover a position on a temporary basis?
FULL-TIME v PART-TIME
– THE BENEFITS
New workers may be:
Full-time – considered to be over 35 hours a week
Part-time – less than 35 hours a week
4.1 RECRUITING
Full-time
Part-time
Less spent on recruitment
Retaining valued workers
Less spent on training
Increased flexibility
Reduced span of control
Wider pool of workers
Increased security for workers
Reduced absenteeism
Employees more committed
Easier to respond to change
Go through each benefit in turn and see if you can add an explanation
as to WHY it is a benefit.
This is an important skill for gaining good grades in the examination.
R ECRUITMENT
Bibi runs a luxury chocolate shop, she works full time in the business
herself and employees 2 part time assistants to help at weekends. One
of her assistants, JD, is a college student who also works extra hours at
busy times such as Easter and Christmas. JD is about to go to University
and has asked Bibi if she would continue to employ him when he is
home from University for key holidays. Bibi thinks it might be time for
her to spend less time working in the shop herself, allowing her to
focus on management. She wonders whether she should replace JD
with a full time member of staff.
4.1 RECRUITING
Question time
1. Explain the difference between full time and part time employees.
(3 marks)
2. Explain 1 benefit to Bibi of employing part time workers. (2 marks)
3. Explain 1 benefit to Bibi of employing JD during his holidays.
(2 marks)
4. Do you think that Bibi should replace JD with a full time or part time
member of staff? Justify your answer.
(6 marks)
RECRUITMENT METHODS
Recruitment could be:
4.1 RECRUITING

internal - appointing an existing employee

external – appointing an employee from outside
of the business
Internal Recruitment
External Recruitment
Lower recruitment costs
Wider pool of workers
Greater promotion prospects
Fresh ideas
Employees know the business
More talent to choose from
Abilities of workers already
known to the business
No need to fill vacancy created
through internal recruitment
RECRUITMENT METHODS
Recruitment Methods include:
4.1 RECRUITING

Personal recommendation – personal contacts
e.g. friends can act as a reference for new
employees as they have an insight into the skills
or integrity of a potential new recruit

Advertising – smaller firms will advertise locally
to reduce costs e.g. Local newspapers or job
centres

Interviewing – this enables the firm to select the
best worker for the job
R ECRUITMENT
METHODS
Team task
Use a local newspaper to find 4 different job advertisements.
1. Stick these to a large sheet of paper and label the common
features of these adverts.
2. Write next to each advert whether or not internal recruitment
might be an option or not for that position and justify your
decision.
3. Can you identify the reason for the need to recruit in each
case?
4. Select 1 of the 4 jobs.
5. What calibre of person would you be looking for?
6. Write a list of questions you would ask a candidate in an
interview for this job.
4.1 RECRUITING
R ECRUITMENT
METHODS
Bibi has decided that she needs to recruit a part time person to
replace JD whilst he is at university and is looking to recruit a full time
assistant to give her more free time. She also wants to investigate the
idea of opening a second store. JD has suggested to Bibi that she
meets his sister Carol who is about to start her A-Levels at college and
is looking for a part time job.
Question time
1. Identify 2 reasons why Bibi needs to recruit new staff. (2 marks)
2. Explain 1 benefit to Bibi of meeting Carol.
(2 marks)
3. Explain 1 drawback to Bibi of meeting Carol.
(2 marks)
4. Explain an appropriate recruitment method for Bibi to attract a full
time employee?
(4 marks)
4.1 RECRUITING
I NTERVIEWS

4.1 RECRUITING
An interview is a 2 way process

Both the interviewer and interviewee get to meet,
work out if they are right for each other and ask
questions

What do you think are the advantages and
disadvantages of using interviews as a recruitment
method?

Would you appoint someone without meeting them?

Would you accept a job without meeting the boss?
REMUNERATION
Remuneration is the money paid or benefits
given to a worker in return for their services
Monetary (pay awards) benefits include:
4.1 RECRUITING

Pay – wages and salaries

Pension payments – pay given to workers after
they have retired. Firms will make contributions
to an employee pension plan

Bonuses – payments for reaching certain targets
Can you explain the difference between a wage and a salary?
Which would you prefer to be paid in the future? Why?
REMUNERATION
Remuneration is the money paid or benefits
given to a worker in return for their services
Non-monetary (fringe) benefits include:
4.1 RECRUITING

Private health care

Company car

Discounts for buying company products

Sports facilities

Social facilities e.g. company bar
REMUNERATION
The level of wages/salaries paid to workers will be
determined by a number of factors:
4.1 RECRUITING

Level of skills and experience needed for a job

The number of people with the required skills

A comparison of pay within the region

A comparison of pay within the industry

The state of the economy

Higher demand for workers or a lower supply of workers
will lead to higher wages.
Discussion time
Is it right that a premier league footballer gets paid £100 000 a week?
H OW MANY WORDS BEGAN
WITH R?

R__________


R________


Keeping valued workers
Monetary and non monetary rewards
R_____________

4.1
Can you
think of any
others?
R___________


The whole topic
Personal suggestion for a new employee
5 M INUTE T EST
4.1 RECRUITMENT

Identify 2 causes of a need to recruit

State 2 advantages of internal recruitment

State 2 advantages of external recruitment

State 2 methods of recruitment

Distinguish between a full time and part time member of
staff

State 2 advantages of part time staff

What is meant by remuneration?
End