Why businesses hire new staff

Article Index

  1. Why businesses recruit staff
  2. Different types of staff
  3. Advantages of full time workers
  4. Advantages of part time workers
  5. Recruitment methods
  6. Interviews

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Business outfits recruit workers for many reasons, such as:

  • To acquire specific skills for a new technology.
  • To get more staff in order to cope with business expansion, new products, or markets.
  • To replace leaving staff.

Why do businesses recruit new staff Part 1

The correct order of the recruitment and selection process is structured out, below;

  • Application forms
  • Interview
  • Job advertised in appropriate media
  • Job description
  • Selection
  • Short-listing
  • Vacancy arises
  • Vacancy filled
  • Workforce planning

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Different Types Of Employees: Full-time, Part-time, and Temporary employees

Full-time employees usually work between 35 and 40 hours per week. They are always available for a lot of hours, and can perform several tasks during that time. Full-time employees gather much on-the-job experience. This experience makes them quality asset of the business outfit they work for. Full-time employees are capable of making decisions and suggestions that can make a business grow.

Empowering this set of employees will keep them highly motivated to double their productive effort. The cost of hiring full-time employees is quite high. If compared to someone who works for fewer hours, full-term employees command high wages and salaries.

Part-time employees work for limited hours per week. Most of them have other engagements, apart from the service they render for their companies. Part-time employees could work for 15 to 20 hours per week because of the other things they need to attend to. Since they work for less hours, they do not command the same salary with full-time employees. But, during busy periods, a company will require the services of its part-time employees more than ever.

Why do businesses recruit staff Part 2: Different types of Staff

Advantages of Full-time workers

  • Fewer staff in total will be needed since they work more hours per week
  • Lower recruitment and training costs
  • Easier to manage and control fewer staff
  • Workers usually feel more secured and motivated with a full-time job because they earn more money than when they are part-time employees.
  • A worker may have divided loyalties by taking two separate part-time jobs. Full-term workers mat not have this problem.

Why do businesses recruit staff Part 3: Advantages of Full-Time Staff

Advantages of Part-time workers

  • Part-time workers help save wages. Full-time employees do not really boost the number of customers.
  • Two part-time employees may be more flexible than one full-time worker
  • Part-time workers may be told to work at busy times of the day or week. This enhances competitive advantage, as well as better customer service.
  • Some workers may prefer part-time employment, especially if they have other things to look after.

Temporary employees usually work for a particular period of time, maybe 1 or 2 months. During the period, their employment could be on part-time or full-time basis. Companies may have to recruit temporary employees in order to cope during busy periods.

Why do businesses recruit staff Part 4: Advantages of Part Time Staff

Job Description And Job Specification

A job description states requirement for a vacant job, and it is given to job applicants. Job title, department, and job function are the basic information for a job description, especially for the position of sales assistant.

A job specification reveals the profile of the type of person that is required for a vacant job. Job specification for a sales’ assistant job may include applicant’s qualifications, specialised skills, interests, as well as personal qualities.

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Recruitment Methods

These are the methods of recruitment that are open to a business;

  • Internal recruitment occurs when a business wants to fill the existing vacancy within its workforce.
  • External recruitment occurs when a business looks outside to recruit applicants for vacant positions.

Why do businesses recruit staff Part 5: Recruitment Methods

Advantages of Internal Recruitment

  • Cheaper and quicker to recruit
  • People will be familiar with the business and how it operates
  • Provides opportunities for promotion in the business, and this can be motivating
  • Business can know the strengths and weaknesses of candidates

Disadvantages of Internal Recruitment

  • The number of potential applicants is limited
  • No new ideas can be introduced from outside the business
  • May cause resentment among candidates that are not appointed
  • Another vacancy which needs to be filled is created

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The Four Most Popular Ways Of Recruiting Externally

  1. Job Centres: Paid for by the government, job centres help unemployed people to find jobs or assess training. Also, they provide free service for companies that want to advertise job vacancies.
  2. Job Advertisements: Being the most common form of external recruitment, advertisements can be seen on local and national newspapers, notice boards, and recruitment fairs. Important information about the job, such as job title, pay package, location, job description, and how to apply to accompany the advertisements. The cost and coverage of advertising will be determined by where a business chooses to advertise.
  3. Recruitment Agency: Employers assess the details of suitable candidates for a vacancy via the recruitment agency. Often referred to as ‘head-hunters,’ the recruitment agency work for a fee, and may specialise in distinct employment areas such as financial services, teacher requirement, or nursing.
  4. Personal Recommendation: It is a recommendation from a colleague at work, and it is termed ‘word of mouth.’ Although it saves a company a substantial cost of advertising, a full assessment of the candidate will still be carried out.

Methods Of Internal Recruitment

  1. An employee is told about the job vacancy by the owner or manager
  2. Application is directed to certain employees
  3. Advertising via the company’s newsletter, intranet, email, or notice board.

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Already the most common form of selection, an interview is very useful for both the employer and the job applicant. These are the major benefits of interview;

Why do businesses recruit staff Part 6: Interviews

For The Employer

  • Helps retrieve information that cannot be obtained via CV or application form
  • Helps assess candidate’s conversational ability
  • Showcases applicant’s natural enthusiasm or manner
  • Checks how each applicant reacts to pressure
  • Gives room for queries or details missing in applicant’s CV or application form

For The Candidate

  • Is the job or business right for you?
  • What is the culture of the company?
  • What are the exact details of the job?

Apart from the interview, there are other selection tests used to select the best applicant. The basic interview may not be enough. An applicant may do well at interview but lacks the requisite skills or qualities to handle the job.

The chances of hiring the best applicant will be high when other selection tests are applied. Some of these tests include aptitude tests, intelligence tests, and psychometric tests, which are used to reveal the personality of applicants.

After the best candidate has emerged and agreed to take up the role, an employment contract should be given to the new employee. This contract is a legal document and it describes the terns and conditions of the job, the initial remuneration package, and other essential details.
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