Business (AS & A Level) · May / June 2024 · Paper 23 · Question 1

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. 5 10 15 20

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