internal and external recruitment

2.1 HRM – Recruitment and Selection (Cambridge 9609)

1. What is Human Resource Management (HRM)?

• HRM is the function that plans, recruits, develops, motivates and retains the people an organisation needs to achieve its objectives.
• Strategic role: aligns the workforce with the business strategy, improves productivity and creates a competitive advantage.
• Key responsibilities: workforce planning, recruitment & selection, training & development, performance management, employee relations, reward & welfare.

2. Workforce Planning

Before a vacancy is advertised the organisation must forecast its labour needs.

1. Analyse demand: consider new projects, market growth, retirements, turnover rates.
2. Analyse supply: audit current skills, identify internal talent, assess gaps.
3. Plan actions: decide whether to fill the gap internally, externally or by a mix; set a timetable and budget.

Effective workforce planning reduces unnecessary recruitment costs and helps avoid skill shortages.

3. The Recruitment & Selection Process

1. Job analysis – job description & person specification
   • Job description – duties, responsibilities, reporting lines, working conditions.
   • Person specification – knowledge, skills, abilities, experience and personal qualities required.
2. Choose the source(s) of candidates – internal, external or a combination.
3. Advertise the vacancy using the selected methods (notice board, intranet, online job board, agency, etc.).
4. Collect and shortlist applications against the person specification.
5. Select the preferred candidate – apply the selection techniques listed in Section 4.
6. Make a job offer and negotiate terms**
7. Prepare a written employment contract** (see Section 5).
8. Onboard and induct the new employee** – induction programme, mentor, health & safety briefing.

3.1 Selection Techniques Required by the Syllabus

Technique	Purpose / What it assesses
Curriculum Vitae (CV) / Résumé	Provides a concise summary of education, work experience and skills; used for initial short‑listing.
Application form	Standardised format that allows direct comparison of candidates against the person specification.
Interview (structured, semi‑structured, unstructured)	Assesses knowledge, skills, attitudes and cultural fit; allows probing of experience.
Reference checks	Verifies claims made on the CV/application and provides insight into past performance and reliability.
Testing (aptitude, psychometric, technical)	Measures specific abilities or personality traits relevant to the role.
Assessment centre	Combines several techniques (role‑plays, group exercises, presentations) to evaluate a range of competencies.

3.2 Employment Contracts – Key Elements (Legal Requirement)

• Type of contract – permanent, fixed‑term, temporary or zero‑hours.
• Statutory terms – pay, working hours, holidays, sick pay, pension, maternity/paternity leave.
• Probation period – length and performance review criteria.
• Notice period – for both employee and employer.
• Job title and duties – clear description of the role.
• Place of work – location and any mobility clause.
• Confidentiality / IP clauses – protection of business information.
• Disciplinary and grievance procedures – reference to the employee handbook.

4. Sources of Recruitment

4.1 Internal Recruitment

Filling a vacancy with current employees.

• Job posting on intranet or notice boards
• Promotion (advancing to a higher grade – e.g., junior accountant → senior accountant)
• Transfer (different department or location)
• Employee referrals
• Succession‑planning programmes

Advantages

• Low cost – no advertising or agency fees.
• Shorter time to fill – candidates are already known.
• Motivates staff and supports career progression.
• New hire already understands the culture, policies and processes.
• Reduces risk of a poor cultural fit.

Disadvantages

• Limited pool – may miss fresh ideas or specialist skills.
• Potential rivalry, resentment or “in‑group” bias.
• Creates a vacancy in the employee’s former role.
• Risk of “groupthink” if too many employees share similar backgrounds.

4.2 External Recruitment

Attracting candidates from outside the organisation.

• Advertising in newspapers, trade journals or online job boards.
• Recruitment agencies and head‑hunters.
• University/college career fairs and graduate schemes.
• Social media (LinkedIn, Twitter, Facebook).
• Company website and employer‑branding events.
• Apprenticeship programmes.

Advantages

• Broad talent pool – access to new skills, experience and perspectives.
• Can bring specialist expertise not available internally.
• Improves diversity and inclusion.
• Refreshes organisational culture and stimulates innovation.

Disadvantages

• Higher costs – advertising, agency fees, recruitment software, onboarding.
• Longer time to fill – sourcing, screening and shortlisting take longer.
• Greater risk of poor cultural fit.
• May demotivate existing staff if they feel overlooked.

4.3 Legal & Ethical Considerations (both sources)

• Equal Opportunities – avoid discrimination on gender, race, disability, age, religion, sexual orientation, etc.
• Data protection – handle personal data in line with GDPR/Data Protection Act.
• Transparency – clear criteria, fair shortlisting and feedback where appropriate.
• Right‑to‑work checks and safeguarding for vulnerable groups.
• Avoid nepotism and favouritism – ensure merit‑based decisions.

5. Redundancy, Dismissal & Employee Relations

5.1 Redundancy

• Voluntary redundancy – employees choose to leave in exchange for a severance package.
• Involuntary redundancy – employer decides the role is no longer required (e.g., restructuring).
• Legal steps: consultation with affected staff, selection criteria (objective and non‑discriminatory), notice period, redundancy pay and right to appeal.

5.2 Dismissal

• Fair dismissal – based on capability, conduct, redundancy, statutory restriction breach or some other substantial reason.
• Unfair dismissal – occurs when the employer fails to follow a fair procedure or the reason is not legally acceptable.
• Procedural checklist: investigation, written warning(s), right to be accompanied, formal meeting, written dismissal notice.

5.3 Morale & Welfare

• Key morale drivers: clear career paths, recognition, work‑life balance, health & safety, inclusive culture.
• Welfare policies: employee assistance programmes, flexible working, health insurance, training opportunities.
• HRM role: monitor morale through surveys, address concerns promptly, link welfare initiatives to retention.

5.4 Management‑Workforce Relations

• Trade unions – represent employee interests, negotiate collective agreements.
• Collective bargaining – process of reaching agreement on pay, hours, conditions.
• Benefits of good relations: reduced industrial action, higher productivity, improved reputation.

6. Training & Development

• Induction – introduction to policies, culture and role‑specific information during the first weeks.
• On‑the‑job training – coaching, job‑shadowing, apprenticeships; develops practical skills.
• Off‑the‑job training – seminars, workshops, e‑learning, external courses; broadens knowledge.
• Business benefits: skill development, increased productivity, employee retention, creation of future leaders.

7. Motivation (2.2)

7.1 Theoretical Models

• Maslow’s Hierarchy of Needs – physiological → safety → social → esteem → self‑actualisation.
• Herzberg’s Two‑Factor Theory – hygiene factors (salary, conditions) prevent dissatisfaction; motivators (achievement, recognition) create satisfaction.
• McClelland’s Need Theory – need for achievement, affiliation, power.
• Vroom’s Expectancy Theory – Motivation = Expectancy × Instrumentality × Valence.

7.2 Practical Motivators

• Financial – base pay, bonuses, profit‑sharing, commission.
• Non‑financial – praise, career development, flexible working, job enrichment, employee‑recognition schemes.
• Link motivators to organisational objectives (e.g., sales bonus tied to revenue targets).

8. Management (2.3)

8.1 Functions & Roles

• Fayol’s Functions – planning, organising, commanding, coordinating, controlling.
• Mintzberg’s Managerial Roles – interpersonal (figurehead, leader, liaison), informational (monitor, disseminator, spokesperson), decisional (entrepreneur, disturbance handler, resource allocator, negotiator).

8.2 Management Styles & Theories

• Autocratic – decisions made by manager alone.
• Democratic – employees consulted and involved.
• Laissez‑faire – minimal direction, high autonomy.
• Paternalistic – manager looks after employee welfare but retains control.
• Theory X / Theory Y – contrasting assumptions about employee motivation and the resulting management approach.

9. Comparison of Internal vs. External Recruitment

Aspect	Internal Recruitment	External Recruitment
Cost	Low – no advertising or agency fees.	High – advertising, agency fees, onboarding costs.
Time to fill	Short – candidates already known.	Longer – sourcing, screening and shortlisting required.
Talent pool	Limited to current staff.	Broad – includes graduates, specialists and diverse candidates.
Impact on morale	Can boost motivation if promotion pathways are clear.	May cause resentment if internal staff feel overlooked.
Cultural fit	High – employee already knows the culture.	Variable – risk of mismatch.
Innovation potential	Limited – similar ideas and approaches.	High – fresh perspectives, best practices.
Legal/ethical issues	Equal‑opportunity must still be observed; avoid nepotism.	Greater data‑protection responsibilities; ensure non‑discriminatory adverts.

10. Factors Influencing the Choice of Source

1. Nature of the vacancy – specialist vs. generalist, skill‑specific.
2. Urgency – how quickly the post must be filled.
3. Budget – funds available for advertising, agency fees, training.
4. Strategic objectives – e.g., diversity targets, succession planning, market expansion.
5. Availability of suitable internal candidates.
6. Potential impact on employee morale, retention and employer brand.
7. Legal and ethical considerations (EO, GDPR, right‑to‑work).

11. Integrated Recruitment & Selection Flowchart (Textual Outline)

1. Workforce planning → forecast demand and supply.
2. Job analysis → produce job description & person specification.
3. Decide source(s): internal, external or both.
4. Advertise the vacancy using the chosen channels.
5. Collect applications (CV, résumé, application form).
6. Shortlist candidates against the person specification.
7. Selection methods:
   • Interview(s)
   • Testing / assessment centre
   • Reference checks
8. Make a job offer → negotiate terms.
9. Prepare and sign the employment contract.
10. Onboarding & induction programme.
11. Review recruitment effectiveness – compare actual time‑to‑fill, cost and quality of hire with targets.

12. Best‑Practice Checklist for Managers

• Define clear, measurable selection criteria linked to business objectives.
• Conduct workforce planning before opening a vacancy.
• Consider internal candidates first when succession planning is a priority.
• Use a mix of sources for critical or specialist roles to maximise reach.
• Write adverts that are gender‑neutral, jargon‑free and promote diversity.
• Ensure GDPR compliance when collecting, storing and disposing of applicant data.
• Provide timely, transparent feedback to all applicants to protect the employer brand.
• Document every stage of the process – shortlisting criteria, interview notes, test scores.
• Conduct a post‑hire evaluation – compare actual outcomes (time, cost, performance) with the original plan.

13. A‑Level Add‑On (Optional Extension)

If the same document is used for A‑Level Business, teachers may wish to attach the following additional topics:

• Strategic HRM – link between HR policies and corporate strategy, HR metrics (e.g., turnover rate, ROI of training).
• Leadership theories – transformational, transactional, situational leadership.
• Organisational structure – functional, divisional, matrix; impact on recruitment and communication.
• Change management – role of HR in managing organisational change.
• Global HRM – expatriate management, cultural differences in recruitment.
• Advanced employment law – TUPE, unfair dismissal case law, health & safety duties.