Assignment A: Examine how effective recruitment and selection contribute to business success.
In this assignment, I will examine the different techniques and identify how Tesco selects and recruits and selects its new employees using research. Tesco is one of the biggest employers in the Private Sector in the UK. Tesco currently has more than 360,000 employees in its small to large-sized stores. Tesco offer stores in small-sized named Tesco Express that is found in local areas as well as big superstores called Tesco Extra that offers more than just normal groceries such as other stores.
Tesco is in a competitive market, competing with the likes of ASDA, Sainsburys, Waitrose and Morrisons as well as fewer premium stores such as Aldi and Lidl that offer the same food and groceries for a cheaper price. Tesco currently operates in 12 countries, not just the UK, including Japan, Hungary, China, Czechia and more. As well as this, Tesco has opened new stores in America which they expect to help them grow as well as diversify Tesco as a business.
They have also recently attempted to compete with the lower-cost priced items sold at Aldi and Lidl by launching their own stores called Jacks. This is Tescos version of their own branded food with cheaper costs, this is important as people are investing more into groceries in Aldi and Lidl which majorly impacts Tesco, so it is important for them to be in this sector of the supermarket market.
Currently, Tesco takes up 27.3% of the supermarket market share which is the most dominant than the other supermarket stores such as ASDA and Sainsburys which both take up 15.2% of the market share. Tescos total revenue in 2018 was ?57.49 billion which shows how much of a big business it is and that it is not a small, Start-up Company and they are a national business as they do have business operating in other countries as already mentioned. Tesco has over 6,500 shops across the world and it is estimated that there are around 80 million shopping trips that take place per week at Tesco. Tesco is a very important store for millions on a weekly basis as it can be local to many homes.
Large businesses such as Tesco must carry out a process called workforce planning. Workforce planning is the process that is continually taken place to make sure that there are priorities in the business and will enable Tesco and businesses, in general, to know if they even need to recruit new staff. It is vital that businesses like Tesco have a workforce plan to make sure that they can meet their organisational objectives, legislative, service and regulatory requirements. These usually include thing such as what the business will need in the future to make sure that the business will operate as successfully and as a planned. This includes things such as the number of people needed, where these people are located and what skills they have. In Tescos case, workforce planning is very important as they need to see what jobs are available and where. Theres a lot of different types of jobs in Tesco especially since Tesco is constantly evolving and developing. With the growth and demand for technology and the way it can significantly help them, it allows for more jobs that are required. Tesco introduced Scan & Go which is a little scanner that customers can borrow and scan items inside Tesco and add the items they pick up onto a virtual basket, that way they can quickly and conveniently see the price of each item and the total price of their shopping. However, this requires specialist jobs as people need to make sure that people are not stolen, and people are using them responsibly and they are being stored away at the end of the use. Other times where Tesco opens more jobs is during seasonal events such as Easter and Christmas. During these times, the business needs more staff to be employed to keep up with the demands of more customers shopping compared to normal such as stocking up more food and items during these periods making it vital for Tesco to make sure that they are correctly planning. Another way Tesco opens new jobs is when they create new Tesco stores in the UK as well as internationally, this creates a wealth of new jobs such as the manager of the store, all its cleaners, till workers, security staff and much more. Vaccines also open after the existing staff at a Tesco moves up through promotion. Tesco currently has different work levels which all require different behaviours and skills which goes up to six levels and the customer is on the top of this organisational structure. Work level 1 would include jobs that interact directly with customers. Examples of these jobs at Tesco would include stocking up shelves. Work level 2 would include jobs that directly with the customers to ensure that the customers have what they need. This includes answering customer questions. They are also responsible for motivating other employees to make sure that they are on-task and focused. Work level 3 jobs requires management skills. Work level 4 is quite high-up the hierarchy and requires good knowledge of Tesco. They must have the skills to analyse key information, so they can make decisions as well as maintaining other employees. Level 5 workers are responsible for the performance of Tesco as a company. They are responsible for making major decisions which could greatly impact Tesco for better or worse. Lastly, level 6 workers are heavily responsible for Tescos core values and goals for the future of it. They need to be able to have a very good idea of retailing. Generally, workers of Tesco move up these levels as they get promoted and as people leave or retire.
There are a lot of reasons why a business like Tesco would have to recruit new staff. Since technology is constantly advancing, the types of jobs can be vastly different from before. As mentioned already, new technology like Self-Service and Scan & Go that Tesco has invented will require new jobs that did not exist before. Other reasons why Tesco would recruit more staff is because of the business itself growing. As soon as Tesco expands into more stores, there is more potential customers that will purchase from Tesco especially if it is a local store to them. These new stores will require new staff to maintain, serve customers, and manage the store. Even current stores or businesses such as the Royal Mail will need to have more staff ready on special occasions and holidays such as Christmas where there is more customers and people expected to use their services to purchase gifts and send items so more staff is required to fulfil these higher demands at these special times.
Tesco has a process called a talent plan which is when they look at current employees that either need to move in their current level, or even become promoted to a higher level. I have explained this work level system previously. This will open a new vacancy for a new employee. If there is a space available, they usually advertise the new role internally using their own intranet which is a network which only Tesco employees can access usually for two weeks. The strengths of this type of recruitment are that it will reduce the time for Tesco to hire a person since finding and engaging with possible employees would be a much easier and quicker process. Internal recruitment also costs less because of the simpler advertising of jobs such as posting ads for vacancies on job boards and putting Tesco on a job database. One downside of internal recruitment would be that the people that are hired through this process may not have all the skills or be the best they could be on the job, and external recruitment may have been a better fit for it instead, resulting in an unhappy employee which would mean that they would not perform well.
This is the traditional method in which people may usually attain a job at a company. Tesco will advertise their available vacancies on their website and in vacancy boards inside Tesco stores which is very common in smaller-sized Tescos such as Tesco Express. For managerial positions, these are applied online only. After this, they are an interview at an assessment centre which will be the final decision whether the person will get the job at the store. An even more traditional, old-fashioned way to register for a job is by going into a store with a CV. Tesco prefers to advertise their vacancies externally through means of websites and radio as well as advertisements on websites on Google platforms and more. Lastly, Tesco allows for an easy process to allow people to see externally what jobs are available on their Tesco Careers website which is an individual site different from the shopping site which displays all available vacancies in each Tesco, as well as One Stop which is another store made by Tesco, all over the UK. One massive advantage of external recruitment over internal is that it straight away opens Tesco to a lot more applicants. Since the vacancies are more visible to the public, there would be a lot more people trying to apply. As mentioned, an external recruit may be a better fit for a job and may help bring fresh talent and ideas to Tesco which could motivate the current employees at a Tesco. However, external recruiting costs more than internal recruiting.