How does a business recruit and select the right employees?
The stages of the recruitment process, the difference between internal and external recruitment, and the stages and methods of selection used to choose the best candidate for a job.
A focused answer to the SQA National 5 Business Management content on recruitment and selection, covering the stages of recruitment, the difference between internal and external recruitment, and the stages and methods of selection used to choose the best candidate.
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What this dot point is asking
The SQA wants you to know the stages of recruitment (attracting applicants), the difference between internal and external recruitment, and the stages and methods of selection (choosing the best applicant). Recruitment and selection are separate processes, so keep them distinct.
The stages of recruitment
Recruitment attracts the right people to apply. It follows a clear sequence.
Internal and external recruitment
The vacancy can be filled in two ways.
- Internal recruitment: appointing someone already employed by the business, for example by promotion. It is cheaper and quicker, the candidate is already known and trusted, and it motivates staff by offering progression. But it leaves another vacancy to fill and brings in no new ideas.
- External recruitment: appointing someone from outside the business. It brings fresh ideas, new skills and a wider pool of applicants, but it is more expensive and slower because of advertising, and the new person is unknown and needs time to settle in.
The stages and methods of selection
Selection chooses the best candidate from the shortlist. Common methods include:
- Application form or CV review: comparing each candidate's details and experience against the person specification.
- Interview: questioning the candidate face to face (or online), one to one or by a panel, to judge their suitability, communication and confidence. Interviews are the most common method but can be unreliable if a candidate performs well on the day but not in the job.
- Testing: aptitude tests measure ability for the job, attainment tests check existing skills or knowledge, and psychometric tests assess personality and how someone might behave at work.
- References: statements from previous employers or others confirming a candidate's work record and character.
- Assessment centre: candidates take part in a range of tasks and exercises over a period to show how they perform, used for more senior roles.
The business often combines methods, for example an interview plus a test and references, to make a more reliable choice.
Try this
Q1. State the difference between a job description and a person specification. [1 mark]
- Cue. A job description lists the duties of the job; a person specification lists the skills and qualities the candidate needs.
Q2. Describe two methods of selection a business could use. [2 marks]
- Cue. Any two of: interview, aptitude or psychometric testing, references, assessment centre, with a brief description.
Q3. Outline one advantage of external recruitment. [2 marks]
- Cue. It brings fresh ideas and new skills into the business and a wider pool of applicants.
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA-style Describe4 marksDescribe the stages a business goes through to recruit a new employee.Show worked answer →
Award 1 mark per stage correctly described, up to 4. The business carries out a job analysis to identify the duties of the post and prepares a job description listing those duties and a person specification listing the skills and qualities needed (1). It advertises the vacancy in a suitable place, such as a website, newspaper or job centre, to attract applicants (1). Applicants apply, usually with an application form or CV and a covering letter, so the business has details of each candidate (1). The business then shortlists the strongest applicants against the person specification to decide who to take forward to selection (1). Markers reward described stages in a sensible order.
SQA-style Compare4 marksCompare internal recruitment with external recruitment.Show worked answer →
Award marks for valid points of comparison, up to 4. Internal recruitment fills the post from existing employees, whereas external recruitment brings in someone from outside the business (1). Internal recruitment is cheaper and quicker and the candidate is already known, whereas external recruitment costs more and takes longer because of advertising and unfamiliar applicants (1). Internal recruitment motivates staff with the chance of promotion but leaves another vacancy to fill, whereas external recruitment brings in fresh ideas and new skills but the new person needs time to settle in (1). Both aim to fill the vacancy with a suitable person (1). Markers reward genuine comparison.
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Sources & how we know this
- National 5 Business Management Course Specification — SQA (2024)