Recruitment, selection and training of employees — practice question

WKN sells household items such as plates and brushes. In the previous year, sales across WKN’s 200 shops rose, yet profit dropped by 80% to $5m. The Human Resources Director at WKN commented: ‘All retailers are finding this point in the business cycle difficult.’ WKN must restructure the business. This will cause redundancy for 1800 shop workers. WKN intends to add 100 new jobs in the marketing department at head office to help keep customer loyalty high. The company is collaborating with trade unions to implement these changes. WKN must decide whether the candidates for the new jobs should be chosen from the workers who are being made redundant.