IGCSE, A Level Business Student Forum

Q13 Analyse the disadvantages of external recruitment for the business. [5]

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Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

KN: External recruitment leads to wastage of time and resources
AN: Leads to financial loss
AN+: Less financial stability leads to bad brand image and thus hard to issue loans from banks

KN: external hires would be less aware about business cultures and have less understanding them
AN: Because of this they would be less adaptable to changes in business
AN+: Business won't be flexible enough with marketarket changes which can lead to missed opportunities.

[KN] Less chance to progress for internal staff. [AN] This means that as the business recruits externally, there are no opportunities for internal workers to be promoted and have a career opportunity. [AN+] This may reduce the incentive to work hard as there is no chance for self actualisation to be achieved. Hence, the worker may not work to their full potential.

[KN] Differences in cultures and management styles. [AN] The new applicant may not be familiar with the business culture and procedures. Hence time may be needed to adjust. [AN+] The external applicant that is employed may find it difficult to adapt to the new management styles and this may reduce the chance to work at their best abilities.

[KN]: Costly
[AN]: recruitment process is very costly and time consuming
[AN+]: extra cost might be required for the process efficiency
[KN]: not instantly adoptive towards business environment.
[AN]: lack of communication skills
[AN+]: not trustworthy.

kn: limited understanding/knowledge about the company's culture
An: business might to train the employees to understand how the company works
An+ this is a time consuming and expensive process

kn:new employees may not adjust to company's environment
An: when this situation occurs management need to take initiative to replace them which requires effort and time
An+the company then has to look for other deserving candidates for the position however external recruitments consists of a lot of risk

KN: Cost of recruitment
AN: wastes both time and money, leading to financial losses
AN+: due to financial loss, business will have less capital to run its operations, hence has a short term financial cost
KN: new employees may not adjust into company culture
AN: Disruption in the workplace and possible conflicts with the management
AN+: these recruits will either have to be trained or replaced, increasing already high recruitment cost

[KN]External recruitment can be a costly and time-consuming process.
[AN]Advertising job openings, conducting interviews, and selecting/recruiting new employees demand an excessive amount of money.
[AN+]Additionally, the time it takes to find, evaluate, and hire external candidates can result in a waste of time, especially if the hiring process is delayed.

[KN]External hires may have a difficult time to adjust in the business culture.
[AN]Differences in work practices, values, and communication styles may lead to a period of adjustment, impacting team dynamics.
[AN+]Achieving cultural fit can be more challenging with external hires compared to promoting from within.

[KN]: limited understanding of the business
[AN]: creating communication barriers among the company
[AN+]: effecting the production efficiency of the business

[KN]: costly
[AN]: advertisment of the vacant posts and processing them
[AN+]: increses the expenses for the business

(Kn) it costs more money than internal recruitment.
(An) as external recruitment requires interviews and analysis of the candidates which wastes business resources.
(An+) a higher cost would lead to a deduction in business profit margins.
(Kn) training and development of employees.
(An) as employee would not understand and adapt the culture of business quickly which would create conflicts between employees.
(An+) conflicts would lead to erros and delays in production line of business which would decrease overall business efficiency.

Kn: Higher cost of recruitment
An :As skilled and trained workers are difficult to find (time taking)and they are to be payed more (high cost).
An+: As business may not be able to expand in future as costs has been increased.

Kn: The environment of the company may not be adaptable by the new employees
An: This may create conflicts within the company.
An+: And mah not be able to compete in the competitive markets .

[KN]high cost of recruitment
[AN]as the skilled worker is to be paid more which will increase cost of the business
[AN+]which would lead to less profit margin for the business

[KN]the current working employee would get demotivated
[AN]which would decrease the quality of the product/services
[AN+]resulting in losing customer

(Kn) employee demotivation
(An) the employees already working amongst the organisation may start feeling resentment due to the fact that they did not receive a promotion despite already being in the company hence demotivation
(An+) this may thus lead to a lower output hence reducing efficiency potentially reducing the company’s outcome hence a disadvantage.

(Kn) cultural fit risk
(An) it is possible that the new employee may not properly be able to fit in amongst the pre-existing employees
(An+) this may thus reduce employee interaction amongst each other leading to lower morale and making it difficult to communicate which will be translated in the work . Thus a disadvantage.

[KN]employee demotivation
[AN]employee might get demotivated as they did not get a chance for promotion.
[AN+]This will lead to lower output and reduce efficiency.

[KN]cost will increase
[AN]business will have to advertise and train new employees.
[AN+]profit margin will reduce.