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7115 · 2.3

Recruitment, selection and training of workers — practice questions

Practice and worked examples for 7115 Recruitment, selection and training of workers. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A hotel needs a new front desk manager quickly. Current supervisor is capable but lacks formal leadership training. Recommend internal vs external recruitment.

Show solution outline

Internal (promote supervisor):

  • Fast, knows systems/culture, motivates others seeking promotion. − Needs leadership training (2.1.6); creates vacancy at supervisor level.

External:

  • Experienced manager with fresh ideas. − Slower, higher cost (agency fees), risk to team morale if internal candidate overlooked.

Recommendation: Internal promotion with structured management training and mentoring — meets urgency and retention goals if training plan is credible.

Worked example 2

A retail company needs to hire a Store Manager with an annual salary of $50,000. Calculate and compare the total cost of using an external recruitment agency versus promoting an internal candidate using the following data:

External Agency Option:

  • Agency fee: 15% of annual salary.
  • Management time for interviews (6 candidates, 5 hours total): Manager's hourly rate is 40.40.
  • HR time for admin and shortlisting (8 hours total): HR staff hourly rate is 25.25.

Internal Promotion Option:

  • Internal advertising on company portal: 50.50.
  • Management time for interviews (2 candidates, 2 hours total): Manager's hourly rate is 40.40.
  • HR time for admin (3 hours total): HR staff hourly rate is 25.25.
  • Cost of a 4-day leadership training course for the promoted employee: 2,000.2,000.
Show solution outline

Step 1: Calculate the total cost of external recruitment.

  • Agency Fee: 15% of 50,000=0.15∗50,000=50,000 = 0.15 * 50,000 = 7,500
  • Management Time Cost: 5 hours * $40/hour = $200
  • HR Time Cost: 8 hours * $25/hour = $200
  • Total External Cost = 7,500+7,500 + 200 + 200=200 = 7,900

Step 2: Calculate the total cost of internal recruitment.

  • Internal Advertising Cost: 5050
  • Management Time Cost: 2 hours * $40/hour = $80
  • HR Time Cost: 3 hours * $25/hour = $75
  • Leadership Training Cost: 2,0002,000
  • **Total Internal Cost = 50+50 + 80 + 75+75 + 2,000 = 2,205∗∗2,205**

Step 3: Compare and conclude.

  • The total direct cost of external recruitment is 7,900.7,900.
  • The total direct cost of internal promotion is 2,205.2,205.
  • Conclusion: Based on these direct costs, internal recruitment is significantly cheaper by 5,695(5,695 (7,900 - $2,205). While external recruitment might bring in new skills, the cost saving from internal promotion is substantial. The business must weigh this saving against the potential benefits of an external hire.
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