1.4.2 Recruitment - costs of recruitment & training

Question 1

Why is it important to reduce recruitment from a financial perspective

Answer 1

Because every time you recruit there are costs incurred. This includes both recruitment and training costs.

Question 2

Costs that are incurred through recruitment - 5

Answer 2

• Costs of the adverts (jobs will have to be advertised)
• Costs of agency fees for a temp to cover the position until is filled.
• Costs of the wage/salary of new employee (may want higher)
• Loss of productivity while new employee is inducted (may miss out on higher sales)
• Interview costs - may have to pay extra to senior staff for doing extra tasks

Question 3

costs incurred in training - 2

Answer 3

1) Training courses and other resources - businesses have to pay training providers if they use external trainers

2) loss of output :
- New workers involved in off the job training will not be producing anything.

• workers on on the job training may have low outputs due to slow learning and mistakes.