Recruitment Process (RP) RP is a private limited company based in country Z. RP is an employment agency that operates in a dynamic business environment. To survive in the market RP must be efficient and maintain a good reputation. RP uses social media to attract customers and relies on word-of-mouth recommendations. RP has recently won an award for its diversity and equality practices. RP's customers provide details of the roles and number of employees required. RP quotes a price to its customer and then agrees a contract to provide its services at the price quoted. Ray, Managing Director, has asked Adjil, Finance Director, to provide a budget breakdown of a recent customer contract. RP's staff are specialist recruiters who find the appropriate employees for each job role. Table 1.1 RP's budget for a recent customer contract, March 2024 | Job role | Number of employees required | Specialist recruiters required | Cost per specialist recruiter (000) | Total cost (000) | |:-----------|:-----------------------------|:-------------------------------|:-------------------------------------|:------------------| | Warehouse | 70 | 1 | 100 | 100 | | Sales | 225 | 3 | 120 | 360 | | Technology | 145 | 3 | 140 | 420 | | Management | 10 | 2 | 190 | 380 | | Total | 450 | | | 1260 | Adjil noted that the actual cost per employee recruited showed an adverse variance of $500. Ray is concerned that the budget does not accurately show the costs to RP. Ray thinks this is because of inefficient practices in the recruitment process.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [1] Rapidly/constantly changing
2. [1] businesses must quickly adapt
3. [1] very competitive
4. [1] new competitors
5. [1] innovative
6. [1] technological change
7. [1] changes in the economy
8. [1] changing regulations/legislation
9. [1] provides recruitment services to other business
10. [1] a business outsources recruitment of employees to another business
11. [1] find ideal candidates for a specific job role
12. [2] customer provides details of job roles and numbers required: the agency selects and recruits employees
13. [2] specialist recruiters used: providing expertise which may not exist in a business
14. [2] increased efficiency/lower cost: especially where may and varied roles/employees required.
15. [2] Can provide training/manuals: reducing costs for other business
16. [2] An example of a business using an employment agency
17. [2] Application can be made to RP or any other scenario/context/business/person.
18. [1] Total cost/total hires
19. [1] 1 260 000/450
20. [1] = 2800
21. [3] 2800 + 500 = $3 300 (OFR)
22. [3] Correct answer 3300 ($ not required)
23. [1] Can plan for the future / forecast revenue/profit/costs
24. [1] Allocate resources
25. [1] Monitor performance
26. [1] Improve decision making
27. [2] Can use to price work done for other businesses
28. [2] Can see variance once work completed/improve future contract pricing
29. [1] Use of Table 1.1
30. [1] Reference to any row / numbers required/costs
31. [1] OFR from answer to Q1(b)(i)
32. [1] Adverse variance of $500
33. [1] Concerns that budget is not accurate
34. [2] Curriculum vitae
35. [2] Résumé
36. [2] application forms
37. [2] interview
38. [2] references
39. [2] testing
40. [2] assessment centres
41. [1] Requires customer contact and selling skills so assessment centre
42. [1] 225 required but only 3 recruiters so simple, quick method best
43. [1] Most relevant probably application form and references
44. [1] Sales staff will need to be personable so may interview to make sure character and personality fit with the job role, but could be an inefficient way to recruit for this many employees
45. [1] Already showing adverse variance
46. [1] Use of Table 1.1
47. [4] High cost of selection – could lower profits
48. [4] May attract lots of applicants – so need a quick/efficient method
49. [4] What time scale is required for hiring – may not have time to interview all
50. [4] Most relevant probably application form and references
51. [4] Need to ensure equality and diversity in selection process – what is best way to do this?
52. [2] Equality - Ensuring a fair organisation so everyone has the opportunity to fulfil their potential.
53. [2] Diversity - Creating a mixed workforce, placing a positive value on diversity in the workplace.
54. [2] May be required by legislation
55. [2] Good employer reputation
56. [2] Easier to attract new employees
57. [2] May get the best applicants
58. [2] Introduce new ideas/innovation
59. [2] Outsourcing company so other businesses most likely to require a diverse work organisation so better fit with customers
60. [2] Businesses more likely to use them if good equality practices
61. [2] Adverse variance of $500 per hire – indicates need to ensure efficiency
62. [2] Dynamic market environment requires creative employees
63. [2] Uses social media to attract customers – variety of languages help global expansion
64. [2] Won an award for good equality and diversity practices
65. [2] Use of Table 1.1
66. [6] Change of working culture may be required – increasing costs/unsettled environment
67. [6] Training in equality and diversity for existing employees – higher costs/lower profit
68. [6] Costs of recruiting – additional requirement leading to higher costs
69. [6] Need to employ diverse ways of working and thinking to bring in new ideas and increase competitiveness
70. [6] Increase productivity – employees motivated by good working practices/leading to increased profit
71. [6] Better able to operate in a global marketplace – attracting more customers/businesses/- leading to increased sales/revenue
72. [6] Weighing up of risks vs. reward of diversity
73. [6] Short term costs vs. long term benefits
74. [6] Judgement of consequences to RP impact on stakeholders it will most likely impact
75. [6] Challenges posed to company culture