Selection and Employment Contracts (Cambridge International AS Business)
Selection methods
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The selection stage begins with collecting information from applicants
- A business may have its own application form, which gathers information such as personal details, qualifications, and work experience
- Applicants may alternatively be asked to submit their curriculum vitae (CV) and a covering letter
1. Application form
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Application forms contain a series of standardised questions to which all candidates must respond
- Name and contact details
- Qualifications
- Work experience
- Positions of responsibility
- Interests
- A personal statement where the candidate explains why they would be suitable for the advertised role
- The names and addresses of referees
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Application forms are often completed online
| Advantages | Disadvantages |
|---|---|
| - All applicants provide identical information in the same format, making comparisons easier - Reduces the risk of bias, as decisions are based on consistent criteria | - Limited information can be expressed, potentially missing key attributes - Can discourage talented applicants who prefer showcasing their skills more creatively |
2. Curriculum vitae (CV)
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A curriculum vitae is compiled by the applicant and may be standardised to apply for varied roles
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CVs usually include **similar information **to that collected in an application form
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Although it should be well laid-out and clear, there is no single acceptable format for CVs
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An accompanying** letter of application** outlines
- Why the applicant wants the job
- Why they would be suitable for the advertised role
| Advantages | Disadvantages |
|---|---|
| - Easier for candidates, leading to more applicants applying, as they can quickly adapt existing CVs - Allows candidates to highlight unique experiences and strengths not explicitly requested by employers | - Comparing varied CV formats is time-consuming, lengthening the recruitment process - Important details might be omitted by applicants, making candidate comparisons less thorough |
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Once received, applications are sifted to identify the most well-suited applicants for the role
- A shortlist of preferred candidates is compiled
- These candidates are invited to take part in the next stage of the selection process
3. Interviews
- Interviews are face-to-face meetings (in-person or virtual) where applicants are asked questions about their skills, experience and knowledge

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A set of relevant questions is used for all candidates to ensure that the interview is conducted in a fair and consistent manner
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Interview questions may focus on
- Skills and experiences relevant to the job
- Successes and failures, and how these were overcome
- Personal interests and experiences
4. Tests
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Assessment tests provide shortlisted candidates with the opportunity to demonstrate their integrity, suitability for the job, aptitude or specific skills
- This can help a business gauge whether a candidate would be a good fit within the existing team
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The assessment tasks may include psychometric tests, group exercises, knowledge tests or presentations
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They typically assess problem-solving and critical thinking skills, giving employers an idea of a candidate's potential
5. References
- Job applicants are usually asked to provide the names of two referees who can vouch for their skills, work ethic and overall suitability for the position
- Referees should know candidates in a professional capacity and be able to speak positively about their abilities
- They are usually listed on the application form or CV and are typically contacted once a job offer has been made
Employment contracts
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An employment contract is an agreement between an employer and an employee that outlines the terms and conditions of their working relationship, including
- The employee's working hours and expected work pattern, e.g. full-time, part-time or shifts
- The contract period, e.g. permanent, temporary or for a fixed term
- Entitlement to paid leave, e.g. holidays, parental responsibility
- Notice periods for both the employee and employer
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The legal status of employment contracts differs between countries
- In most countries, a contract is a legal requirement that comes into force as soon as the employee accepts their job offer
- In some countries, a verbal agreement has the same legal status as a written contract
Types of contracts
| Type of contract | Explanation |
|---|---|
| Permanent | - Ongoing employment with no end date - Used for long-term roles needing specific skills or experience - Provides* job security* for employees and stability for employers |
| Fixed-term | - Employment for a set period, with clear start and end dates - Often used for temporary roles or to cover staff absences like parental leave |
| Casual | - Irregular, on-demand work with no guaranteed hours - Common in busy seasons, e.g. summer - Suitable when specific skills are needed but long-term commitment is not |
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