EnglandBusinessSyllabus dot point

How do businesses recruit, select and train the right people?

The recruitment and selection process; internal versus external recruitment; methods of selection; induction, on-the-job and off-the-job training; the costs and benefits of training; labour turnover and retention; and the link to business performance.

A focused answer to the Eduqas A-Level Business statement on recruitment, selection and training. Covers the recruitment and selection process, internal versus external recruitment, methods of selection, types of training, the costs and benefits of training, labour turnover and retention, and the link to performance, with a worked labour-turnover calculation.

Generated by Claude Opus 4.812 min answerUpdated 2026-06-02

Reviewed by: AI editorial process; not yet individually human-reviewed

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Quick answer

Recruitment attracts candidates; selection chooses the best. Internal recruitment fills a post from existing staff (cheaper, quicker, motivating, but no fresh ideas and leaves another gap); external recruitment brings in outsiders (fresh skills and ideas, wider pool, but costlier, slower and riskier). Selection methods include application forms, CVs, interviews, tests and assessment centres. Training is induction (new starters), on-the-job (learning while working) or off-the-job (away from the workplace). Training costs money and time but raises skills, productivity, quality and retention. Labour turnover $= \tfrac{\text{staff leaving}}{\text{average number employed}} \times 100$ ; high turnover is costly, so retention matters. The right people, well trained and retained, raise performance.

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What this theme is asking
Recruitment and selection
Internal versus external recruitment
Methods of selection
Training
Labour turnover and retention
Link to business performance
Examples in context
Try this

What this theme is asking

Eduqas wants you to know the recruitment and selection process, the choice between internal and external recruitment, the methods of selecting candidates, the types and costs and benefits of training, and how labour turnover and retention link to performance. Getting the right people, trained well and kept, is central to a productive workforce.

Recruitment and selection

Internal versus external recruitment

Methods of selection

Common selection methods include the application form and CV (to shortlist), the interview (one-to-one or panel, to assess suitability and fit), psychometric and aptitude tests (to measure ability and personality), work tasks or presentations, and assessment centres (a day of varied exercises for senior roles). Using more than one method improves reliability but costs more, so firms match the method to the importance of the role.

Training

Labour turnover and retention

Worked example: labour turnover and its cost

A firm employs $50$ staff on average. During the year $9$ leave and are replaced.

step 1: calculate labour turnover

\text{Labour turnover} = \frac{9}{50} \times 100 = 18\%

step 2: interpret

An $18\%$ turnover means nearly one in five staff left and had to be replaced in a year, which is fairly high for many sectors.

step 3: identify the cost

Each leaver triggers recruitment and selection costs, induction and training costs for the replacement, lost productivity while the new starter learns, and the loss of the leaver's experience and knowledge.

step 4: link to action

The firm would investigate why staff leave (pay, conditions, management, lack of progression) and improve retention, because reducing turnover from $18\%$ to, say, $10\%$ would cut recurring recruitment and training costs and protect productivity.

Retention is improved through fair pay, good conditions, training and progression, effective management and motivation, since keeping good staff avoids the cost and disruption of replacing them.

Link to business performance

The right people, well selected, trained and retained, raise productivity, quality and customer service and reduce the recurring cost of recruitment and training. Poor recruitment, weak training and high turnover do the reverse: lost knowledge, lower productivity, higher cost and disrupted service. This is why workforce decisions are not just an HR matter but a driver of competitiveness.

Examples in context

A retailer promotes internally to fill a store-manager role, motivating staff and saving cost. A tech firm recruits externally for a specialist it cannot develop in time. A manufacturer invests in off-the-job training for a new production technology. A call centre with high labour turnover improves pay and progression to cut the cost of constant rehiring.

Try this

Q1. A firm with an average of $80$ staff has $12$ leave in a year. Calculate the labour turnover rate. [2 marks]

Cue. $\tfrac{12}{80} \times 100 = 15\%$ .

Q2. Explain one benefit of internal recruitment. [3 marks]

Cue. It is cheaper and quicker, the candidate is already known and understands the business, and promotion motivates staff and rewards loyalty.

Exam-style practice questions

Practice questions written in the style of WJEC Eduqas exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

Eduqas 20206 marksA business started the year with

40

employees and ended with

40

, having had

8

staff leave and be replaced during the year. Calculate the labour turnover rate, and explain one cost of high labour turnover. (6)

Show worked answer →

A calculation plus a short explanation.

Labour turnover $= \tfrac{\text{number of staff leaving}}{\text{average number employed}} \times 100 = \tfrac{8}{40} \times 100 = 20\%$ .

Cost of high turnover: the firm faces repeated recruitment and training costs, loss of experienced staff and knowledge, and lower productivity while new staff learn, which raises costs and can disrupt service.

Markers reward the correct percentage with the percentage sign and one valid cost. The common error is to divide by the number leaving rather than by the workforce.

Eduqas 202210 marksEvaluate the view that training is always worth the cost for a business. (10)

Show worked answer →

A levels-of-response evaluation. For training being worth the cost: it raises skills, productivity and quality, reduces errors and accidents, improves motivation and retention (reducing turnover costs), and helps the firm adapt to new technology and methods. Against: training is expensive and takes staff away from work, the benefits are hard to measure and may be slow to appear, and trained staff may leave for rivals (so the firm pays the cost while a competitor gains the benefit). Evaluation: training is usually worth the cost where it raises productivity, quality and retention by more than it costs, but not always: the value depends on the type of training, the firm's ability to retain trained staff, and whether the skills are firm-specific or transferable; poorly targeted training wastes money. The top band judges and applies.

Related dot points

Sources & how we know this

Eduqas A Level Business Specification (A510) — Eduqas (2015)