Costs of Recruitment and Training

Costs of Recruitment, Selection, and Training

• Recruitment of new employees can be expensive for businesses.
• This adds to business costs, potentially making the business less competitive.
• The ideal is to find the cheapest method to attract the largest pool of candidates for a vacancy.

Recruitment Costs - Advertising

• Recruiting new employees can be expensive.
• This adds to business costs, impacting competitiveness.
• Finding the cheapest way to attract a large pool of candidates for a vacancy is the goal.

Recruitment Costs - Agency Fees

• Smaller or one-person HR departments may use recruitment agencies.
• Agencies can advertise job vacancies and manage recruitment.
• Employing permanent staff through an agency is relatively expensive—potentially costing £2,000 for one employee.
• Recruitment agencies may specialize in specific areas like teachers, IT staff, or HGV drivers.

Types of Training

• Induction training is critical when a new employee joins a company.
• Induction training covers important skills like using fire extinguishers, familiarization with the building, and introductions to other employees.
• The content of induction training varies based on the specific job and company.

Induction Training

• Induction training is given to new employees to familiarize them with the company environment.
• This helps new employees to: be familiar with the workplace; be able to perform their job; feel part of the organization; and quickly become productive for the business.
• Induction training includes company policies, health and safety, introductions to colleagues, and job-specific training.

Induction Training Pros and Cons

• Advantages:*

• Employees clarify their commitment during the first week of employment.

• Induction training motivates employees and helps them become part of the company culture.

• Good induction training reduces employee turnover.

• Disadvantages:*

• Too much information during induction can overwhelm employees.

On-the-Job Training

• On-the-job training happens while the employee is working.
• Experienced employees mentor or coach inexperienced workers.
• On-the-job training may include shadowing an experienced employee or learning to operate a specific machine
• Employees can use company software after instruction.

On-the-Job Training Pros and Cons

• Advantages:*

• Specific training needed for the job role.

• On-the-job training is generally less expensive than off-the-job training.

• Employees can immediately apply new skills.

• Skills are relevant to the job at hand.

• Disadvantages:*

• Training takes time away from job duties, decreasing productivity.

• Employees may not learn quickly, requiring additional time and support.

• A poor trainer might pass on bad habits to the trainee.

• If poorly trained, workers may cause costly errors or workplace accidents.

Off-the-Job Training

• Training occurs away from the workplace.
• Occurs in training centers or classrooms, through lectures or demonstrations.
• Training can cover specific topics like general ICT or machinery, often with focused health and safety precautions.

Off-the-Job Training Pros and Cons

• Advantages:*

• Dedicated training environment lessens distractions.

• Employee motivation increases, as training is seen as an investment by the company.

• Training sessions are not interrupted by work duties and tasks.

• Trainees can focus entirely on the lesson and increase their specialist skills.

• Disadvantages:*

• Off-the-job training is often more expensive than on-the-job training.

• Employees are out of production during the training duration.

• Connections between the training and the workplace might not always be clear for employees.

Explore the financial aspects of recruitment, selection, and training in businesses. This quiz covers various costs, including advertising and agency fees, while discussing the importance of finding cost-effective strategies for attracting candidates. Understand the impact of these costs on business competitiveness.