The important assets used by businesses today

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Employees of any business are a very important asset, and hire the best people at the right time would always lead to a competitive advantage for the corporation, Stewart and Brown (2009). That is why, selection and recruitment is one of the greatest challenges for organizations in the personnel department where everyone wants to do things right at the first time. Recruitment of staff plays an important role in people's expectations and conditioning of their views and contributions to the entry and gathering rich source of information about people's capabilities, values, and a motif that plays an important role in providing information on what other policies of HR could be shaped, (Roberts, 2004). "In accordance with Dale (2003), selection decision may well be defined as one that leads to the person appointed to reach a satisfactory level of performance within an acceptable time for a reasonable price"

If at the right time, the right candidate is not hired, would result in inefficiency, weak performance and ultimately it leads to sales staff in order to eliminate unnecessary weight to the high costs of hiring and repeat all practice of selection, (Fyock, 2008).

1.5 Structure of the research.

The second chapter would address the main literature which has been used for this study, and in order to identify what studies have been conducted in the recruitment and selection process used to hire staff specifically. For Tesco people and labour costs are the two very important issues.

Chapter Three will provide the methods used for the research study and data collection and information necessary to critically analyze the theory which was discussed in the chapter two above.

Chapter four would save the data in tables and comparative analysis of information from the study of literature, and how the relationship between recruitment strategies and selection of staff turnover in the company.

Chapter five presents the results and how to answer the question of research and make policy recommendations and academic study concluded. The research structure shown in Figure 1.1 below can be summarized like;

Figure 1.1 Research Structure

Introduction

Aims and objectives

Business Process Outsourcing

Recruitment and Selection

Employee Turnover

Conclusion

R

E

S

E

R

A

C

H

Q

U

E

S

T

I

O

N

To evaluate the existing recruitment and selection strategies and make recommendations to W&NS of how to enhance their effectiveness in order to minimise employee turnover.

To conduct a comparative analysis between the recruitment and selection practices and strategise of financial outsourcing department in W&NS.

To critically analyse the implementation and effectiveness of existing Recruitment and Selection Strategies implemented by W&N.

To critically review the body of the literature related to theories of Recruitment and Selection Strategies.

Aim and Objectives

Data Analysis Strategy

Qualitative Data Analysis

Data Preparation

Research results

Discussion and analysis

Literature Review

Conclusion and Recommendations

Findings and Analysis

Aim and Objectives

Types of Research

Research Approach

Research design

Determination of Sample

Data Collection

Data Analysis

Validity and Reliability

Justification

Research limitations

Conclusion

Methodology

Aim and objectives

Justification

Research path

Limitations

Summary

Possible Future Studies

Recommendations

Source created by author (2010)

Chapter Two

Literature Review

2.1 Introduction

This chapter describes the key literature in the field of recruitment and selection and practice of Business Process Outsourcing (hereinafter referred to as BPO) industry in Sri Lanka and its use to reduce employee turnover. The workers leave their employers for various reasons. The author aims to identify and focus on the reasons for the employee to maintain a result of errors in the process of search and Selection Company. This study would then explore the process of recruitment and selection for his close relationship with the worker to maintain.

Literature review to begin by stating the purpose and objectives of the studies, it is better to relate Literature.

2.4 Recruitment and Selection Strategies

Strategies of Selection and Recruitment are built up "with the goal of making it sure that organisational objectives are attained by availing the right amount, skills and excellence mix of workers at right time", (Campton and Nankervis, 2009). For improving business presentations and recruitment and selection strategies have been continuously improved. Although these two concepts, recruitment and selection are often treated as a part, differences between these two concepts, (Collings and Wood ed, 2009). In accordance with Searle (2003), "for some people, Recruitment focuses on the identification and selection of individuals for the establishment whilst Selection is focused on inside candidates and for others, Recruitment is about identifying and attracting appropriate applicants and Selection. Its assessments and decision time to employ the appropriate applicants from the pool fascinated to the vacancy". Occasionally, the North American word "Hiring" is also utilized for pointing towards these two words together, (Anandakumar and Biswas, 2008). For the study based its second recruitment literature is the processors would be able to attract candidates for the organization and the selection is a process to assess and identify a suitable candidate talent.

2.4.1 Recruitment

"Recruitment should not only be done for filling up the vacancies but to develop and sustain competitive advantage for the organisation". Henderson, 2009

That is why, large organizations understand the value of having a good recruitment strategy, which is the key organization for top talent, is essential to organizational success, (Philips and Edwards, 2009). "Recruitments play the role in forming people's expectations and stipulating their contributions and attitudes on entry and to gather wealthy information resources on the skills of people, values and a purpose which plays an important part to provide the intelligence upon which other HR policies can be shaped", (Roberts, 2004). "The choices of Poor recruitment would only direct to increased turnover rates", (NCETA, 2005). It's essential to identify that "strategy of recruiting goes further than only filling the unfilled positions, it's a procedure to discover talent before it is needed and avoid facing a shortage of appropriate abilities and skills", (Mathis and Jackson, 2007). "Defining job's description, Job Classification, clear payment schemes, career paths and person's specification are all significant strategies to be planned in advance of publication of the vacancies", (Warne, 2003).

The process of Recruitment consists of many sub contents that are essential to overall process performance as an effectual strategy. As said before that company's Recruitment Strategy should to be able to catch the fancy of a large talent pool which is appropriate to be employed by the organisation. All of these sub contents are required to be noted carefully by the Human resource department of the company for "Getting the best and avoid the rest", (Fyock, 2008). "Basic goals of recruiting are to communicate a positive image of the organisation and to identify and gain the interest and commitment of people who would be good employees", (Stewart and Brown, 2009). That is why, In accordance with Stewart and Brown in the hiring process can be divided as follows.

• What is the Job - to analyze and identify how and what to do regarding that particular job, what knowledge and skills are needed, it is best to do. These can be done by the job description, job specifications, job analysis and person.

• Employer Brand imaging - an effort should be made to communicate the values of the company and, together, a firm can choose between a realist and an idealist type messaging as a recruiting practice.

• Attract talent - who would be the sources of recruitment by an organization, the commons offers employment, job references, advertising in print and electronic media.

Effective recruitment is to catch the fancy of the best talent pool for the association. A large pool of talent can be attracted by such means as effectual marketing and advertising, job fairs, word of mouth and referrals from current employees etc. Before the attempt of attracting intelligent candidates, it is essential for identifying jobs and skills needed for each job, the organization needs to fill. That's why organizations must focus on content and recruitment.

Analysis of Job - is to discover and posting to job tasks and skills needed to perform their jobs effectively.

Job Description - is a bit more detailed than the rights and powers, who understands the responsibilities involved in the work, that the report and monitoring reports and working conditions of employment.

Specification of Person and Job - It is a part where the demands of man are stated as necessary to perform a specific job, including the required personality types, skills and qualifications.

Job Analysis is generally so good in the first act, the creation of jobs in general HR specialist or supervisor. Although this is usually done early stages, it's also significant to analyze the work from time to time roles and job requirements often change the progression of technology, (Dessler, 2009). Several techniques can be carried out analysis jobs. The most common methods include the interrogation of employees and existing customers, questionnaires, diaries, observation and maintenance of access to the tasks per job are formed. This analysis is used to create jobs, job descriptions and person specifications for the job.

"A Job Description is normally consisted with a written report detailing responsibilities and the task activities of a job and its outcomes of work, relationships to other jobs and working conditions", (Campton and Nankervis, 2009). "For an effectual recruitment process up to date "Job Description" which contains particular activities and tasks required for job and abilities and knowledge skills for achieving the level of performance which is a must", (NCETA, 2005). It is also known that "when recruiter provides realistic expectation about the job significantly a lower turnover of new employees can be seen", (Ivancevich 1998).

Person specification and the Job focus primarily on the attributes of the people of the essential and desirable for the execution of the works, (Campton and Nankervis, 2009). This is clearly specified in terms, informed, measure and analyze the state of pleasure, future plans and possible changes in the work of workers expected to perform. It's said that academics, professional qualifications, professional experience and personal qualities are elements of the person specification, (Dessler 2009). It is a way to communicate with candidates that on what the types of employees are they trained to do the job.

Job Analysis - Job description and specification on person and job are to understand of what a person is required to work, and must work as efficiently as possible. When the work is clearly identified and the organization is unclear what type of candidates who want to attract talent, the second phase of recruitment would begin. In accordance with Stewart and Brown (2009), "recruitment becomes a strategic process when it concentrates on attracting candidates who would later be great employees of the organisation".

2.4.1.2 Employer Brand Image Building

All organizations are not necessarily attractive to applicants. The reason for a candidate to be attracted by a vacancy in a given firm varies in different ways, (Dessler, 2009). Not all candidates are attracted to a particular cause or set of reasons for not drawing the same cause. The complex reasons for the attraction of candidate organizations to task for human resource managers difficult to maintain a good talent and find the most appropriate in the pool. Further, "an organisation has to develop a competitive advantage by creating a place where candidates want to work", Stewart and Brown (2009).

There are some properties that come before the others in identifying reasons for candidates to get attracted to a particular organization.

First light image and the knowledge of the organization.

Organizational Traits

Recruitment Activities

Facilities and the Compensations

People seeking employment tend to seek opportunities in organizations that are familiar, (Turban et al, 2001). In accordance with the survey of most of familiarity comes from advertising and company reputation with the public. Companies with a strong brand image do not need special employment opportunities, but companies without a strong brand or not the products that are familiar to the general public should least create awareness among people looking for jobs.

"Organisations can benefit from image enhancing activities such as placing advertisement and sponsoring events which involve the general public such as charity work". Stewart and Brown (2009) and In accordance with CIPD (2007b), "The way a company treat its employees contribute directly to it being seen as willing to accept its wider responsibilities, building credibility and trusting their employer are being increasingly seen as important by potential employees when they choose to work for". This positive aspect of brand can be used in effective recruiting and retaining highly qualified people. It is important for the "companies who want to build or protect their brand to concentrate on their employer brand as well as there is evidence that more and more people want to work for employers that they respect and this cannot be ignored or afford to be ignored where companies are competing in a war for talent", (Emmott, 2005)

2.4.1.3 Two dimensions of Recruitment depending on the skill scope required for the Job

In accordance with the business model of the organization and type of work that recruitment methods vary. If the business model requires a large number of workers to be hired by groups such as fast food chains, it is easy to focus on a "Broad Skill Scope", where the strategy is to attract a large number of candidates to find a set appropriate people, Stewart and Brown (2009). This method is very useful for many organizations looking for employees who are at the same time and with appropriate strategies to control costs. The other aspect is important note that organizations with strategies for cost containment often use the cheap labour that in many cases, employees remain in the organization for a short time to the organization to find new employees continuously. "This is basically due to the minimum level of investments in human capital with low standards for recruitment." (Redman and Wilkinson, 2009).

On the one hand, targeted skill objective is to attract a small number of candidates with specific skills and qualities can be made for a particular job, (Stewart and Brown, 2009). Organisations wishing to recruit highly skilled employees to work which requires skills can certainly be considered as candidates to attract a large number of highly qualified experts are not many candidates. In such situations, it is useless to draw a number of candidates without qualifications and skills for the organization are looking for, (Storey, 2009). In accordance with Stewart and Brown (2009) Targeted skill scope recruitment is "used in organizations where the company's competitive strategy of differentiation". Such Organizations hire candidates due to their rare skills and knowledge.

2.4.1.4 Common Sources of Recruitment

Job, employee referrals and print advertising mail, job fairs, agencies, a few of the many ways to join groups of potential talent in an organization. These sources "would vary depending on the type of vacancy in an organization and the labour market situation", (Bohlander and Snell, 2010). The sources used to recruit a call centre may not be appropriate to employ a business analyst in the same call centre. In times of recession where unemployment is higher than the normal labour market becomes a seller's market where there is a surplus of job seekers. In such a situation, organizations can easily search for employees, where in a situation where unemployment is low, an organization must do a lot of advertising to find the right type of candidates. That is why, they believe an organization can use one or more sources of recruitment to recruit to fill their vacancies.

Job Posting - is communication of the vacancies of the organization through the communication channels of the organization. This is basically when employees are called into service to fill vacancies. Currently, businesses use e-mail and websites to send the available vacancies to different organizations. "An effective job posting is required to describe both nature of duties and necessary qualifications clearly to attract the best internal candidates", (Bohlander and Snell, 2010). "Job posting can be used in two ways where the organisation is in need for an expert in certain area and where organisation is in need to facilitate movements among a variety of positions", (Stewart and Brown, 2009). Consequently Job as a source of recruitment is more important to organizations of internal recruitment strategy.

Employee referrals - when employees are in place to find candidates to fill vacancies in the organization. This is known as a low cost but highly efficient source of recruitment, (Compton and Nankervis 2009) "In many organisations 1/3 of new employees come through referrals from existing employees", (Mintz, 2005). In accordance with Stewart and Brown (2009) "new recruits from employee referrals have a high tendency of becoming better employees and makes the current employees more committed and engaged towards work when they do a successful referral". A study conducted by Malcolm in 2003 found out that "highly successful call centres found 21% of their staff from employee referrals and on the other hand less successful ones only found 4% from referrals". Referrals are also known to slow the rate of staff turnover because new employees told the truth to their referees, and well aware of the organization's values and functions, (Compton and Nankervis 2009)

Printed and electronic media advertising - is the most famous source of employment, organizations of all levels. Newspapers are a media release and the only way to reach large numbers of people with a low price, best suited to organizations in the management costs of HR strategy. Although this source has the opportunity to move to a large number of people who all agree to work or be employed in the organization. In addition, newspaper advertisements are projected to fall in the future a very low 40%, (Wilock 2005). Advertising in magazines and specialized work Journal magazine ads is to reduce the level of access to suitable candidates. "Four point guide AIDA (Attention, Interest, Desire and Action) is commonly used when constructing an advertisement to be posted on a printed media", (Dessler, 2009). Modern technology is displayed in every phase of human resource management as well. Internet is used to send recruitment messages and web pages are the second media is also very popular. While the electronic media is now known to be faster and cheaper to pull back can be difficult to attract good candidates and rapid attention because of the amount of information available on the Internet, (Compton and Nankervis 2009)

Career fairs - are also used as a useful source of recruiting, like many organizations. Indeed, after September 11, 2001, 70% of organizations in the United States have spent career fairs to attract new talent pool. "These are designed to provide detailed information with a personal touch and designed to reach to as many applicant as possible." (Aamodt, 2010).

Given the major sources of recruitment, studies have consistently found that referrals of employees to be better recruitment source that monitor job posting, (Staffing Org. Inc., 2007)

Graph 2.2 Relative Recruiting Source Effectiveness based on New hires.

Source- Dessler (2009)

2.4.1.5 Recruitment Process

In accordance with Erasmus et al (2008) "recruitment process developed almost without interruption". Allege gradual process that can be used to recruit effective approach. Step one is "an accurate determination of the need for recruitment". It can be a strategic planning, work-flow or it can be opened to provide the ad-hoc style that arises. Step two is to "ensure that the job description and personal details are updated and modern". If you do not upgrade do not correspond exactly what it means to work and what skills it requires organizations to attract candidates as a result of incorrect or outdated skills and get the right candidate. The third step is to "choose the most suitable source of service". Choice may depend on the source of recruitment success, sort of candidate the organization wants to attract and the number of vacancies is filled. That is why human capital is the effective recruitment process should be optimal to choose the right person first time, (Fitz-enz, 2009)

2.4.2 Selection

"Effective selection is the process of choosing people with the best chances of succeeding in a job", (Bartram and Lindley, 2005)

In accordance with Dale, 2003 " A decision of good selection can be defined as one which results in the person appointed to attain a satisfied performance level at an acceptable cost and in an acceptable time period". One of the major causes why employees leave the company shortly after starting work or within two years from start is the inability of the task of life expectations of workers, (Cooper et al 2003) Cook, 1988 suggested "six criteria to aid the choice of methods of selection with generality, acceptability, validity, practicality, cost and legality".

The most significant part of selection method is "the candidates' assessments which simply gives the answer of two essential questions of whether the selected candidate would be able to perform the job and whether candidate would remain in the company to justify the cost associated with training and recruiting", (Hunt 2007). Interest of Author is in the second question of whether the candidate would stay in the corporation to justify the training cost. Three objectives can be identified by the successful procedures of selection.

Firstly, "identifying the particular characteristics of those who are best equipped to meet the job requirements, secondly, to identify performance criteria by which a candidate will be evaluated and finally determination of appropriate standards of evaluation",(Roberts, G. 2004). Henderson (2009) suggests that patterns of selection are as follows. "Try to see the model" in which the candidate must have a chance to try a year of employment, "Lottery Model" in which candidates are selected at random, " Common Sense and Experience Model" in which the successors will be given highest priority, "Matching Attributes model" attempts to match the attributes of work which are required by the job, and those possessed by the candidates and "Competency Model" by comparing a specific set of skills of candidates. You must be very careful when you select the model proposed by Henderson as a model should be appropriate to choose the right candidates for jobs ("Try and you will see the model absolutely not for selecting surgeons"). The ultimate goal should be to look for a selection of candidates with the qualifications to perform the work and the social and physical society condition.

2.4.2.1 Person - Job fit and Person - Organisation Fit

When the organisations look for hiring someone for the adjustment work based on individual skills, knowledge and skills matching the requirements for a specific job, (Stewart and Brown, 2009). This pairing is perfect for the selection of candidates for a very technical work. John Holland developed a theory "personality-job fit theory" in an attempt to match the work conditions with the personal characteristics of the worker, (Robbins, 2009). In accordance with Holland "When occupation and personality are in agreement turnover is lowest and satisfaction is highest". Alternatively when the employee's characteristics fit the norms of the organization, values and culture, is called an organizational crisis. This is ideal when organizations are seeking employees who are more expected to work on the long-term basis with the business. This modern as today's organizations are subject to a changing and dynamic business environment that requires the workers who are always ready and not difficult to change.

In accordance with Robbins (2009), the studies also mention the fact that "organization capable person manages to adapt to the values of employee organizations in exchange for job satisfaction, commitment and low turnover, business." That is why, a selection strategy for effective, organizations should consider the importance of these bases to find the best candidate among the candidates, (Budhwar and Bhatnagar, 2009)

2.4.2.2 Selecting based on Achievements or Potentials of candidates

Organization to choose the most suitable candidate must be decided by talent, should select employees who have achieved success and existing skills and past achievements. These organizations use assessments designed to measure the candidates work history and evidence of the abilities and acquired skills, (Stewart and Brown, 2009). Any choice based on the one hand is an approach that future events and That is why decisions are made projections candidate ability to learn and develop skills for the company, (Budhwar and Bhatnagar, 2009). This is more suitable for the candidates who have entry level with no previous available experience. It's basically deciding that whether the "process of selection ought to be emphasised on the capability of older more experienced candidates the freshly graduates' potential", (Berman et. al., 2010)

2.4.2.3 Selection Methods

There are many methods of selection, some of which are used more frequently than others. The mainly general are personality tests, interviews, work sample tests or assessment centres One or more of these ways can be used depending upon the ability to perform a job effectively, knowledge and requirements of skills. In accordance with Torrington et, al, (2009), "in a competitive market poor selection cost for best talent can be important, including extra training, weak performances, employee turnover, high amount of absence and de-motivation of others,". Additionally, the chosen method must be one that discriminates fairly and not excessive in relation to equal opportunities legislation. That is why, a method of selecting supposed to be a "valid, reliable, efficient, acceptable and fair", (Stewart and Brown, 2009).

The validity is whether the method of selection to test the capacity and skills of candidates with precision, and he tested what is believed to be tested. The method's reliability of selection is the capability of the method to produce reliable results. Utility of a selection method, Cost-effectiveness or the cost of choosing a candidate justifies the requirement for a particular job. The fairness of a selection method ties with the legality of equal opportunity and against discrimination laws to protect candidates. Approval of a method for selecting candidates is their beliefs about the fairness of the selection method for selecting candidates for a particular job. No ideal method of selecting one of the jobs available on the market, (See Table 2.2) not all these methods have all the qualities as said before, so an organization can choose one or more selection methods. Henderson (2009) the study found the approximate level of ownership held by some common methods of choice.

Table 2.2 Comparison of characteristics of selection methods

Selection method

Validity

Fairness

Applicability

Cost

Interviews

Low

Moderate

High

Low

Personality

Moderate

High

Low

Moderate

Assessment Centres / Work Samples

High

High

Low

High

Source -created by author (2010)

One of the most common and famous selection methods is to carry out the interviews. "An Interview is asking the questions from other people in order to discover their behaviours, attitudes, skills and past experiences", (Edenborough, 2002). The "questions" rose by the candidates must be able to respond to determine the capacity and ability to mount a candidate for the position and physical work environment and social development. "Well structured interviews would direct to successful talent selection for administration and interviews would always be parts of the candidates' assessment for selection", (Campton and Nankervis, 2009). In accordance with the ICPD report on retention, recruitment and turnover in 2007, 92% of employers rely on interviews or other means of selecting candidates. This represents an increase of 7% over the previous survey in 2006. That is why, it is clear that the interviews are in possession of a very important role in choosing the most suitable candidate for an organization.

There are two types of interviews, "Structured interview" which uses systematic and questions were asked of all applicants. "These type of interviews lets the interviewer for preparing the questions in advance which are related to work and would be helpful in comparing candidates and evaluation depending on the answers given by them", Mathis and Jackson (2008). Structured interviews may be in different types of interviewers to use one, several or all of them in a process of selection.

The types of Structured Interview are as follows; "Biographical Interview" which is for discovering the recent experience of candidates and only collects information to offer. The second type is "Behavioural Interview" is how applicants should describe how they would perform in a specific task or solve a problem with a job that offers the opportunity for investigators to determine whether candidates are best suited for the job. The third kind of structured interviews is to conduct a "Competency Interview" that aims to control level of ability to perform a specific job. Finally, the "Situational Interview" type of interview questions about how candidates will deal with a specific employment situation of their own. The experts analyze the responses for checking the validity. Alternatively, "Less Structured Interviews" is where the interviewer to ask ad hoc questions from applicants. This type is not known, because they are not considered as a means effective selection of candidates.

Another way to choose to personality tests, personality tests to discover the type of candidate and the candidate is suitable for the workplace. In accordance with Mathis and Jackson (2009), "personality is a great way to mix the individual signs, which may influence a person does a particular job and how they interrelate with the environment of work, they are in". Personality tests are usually used to find the talent to combine with others and communication operators, which are very important groups of business environment, (Hart and Sheldon, 2007). That is why, a person who has a strong position in teamwork team work characteristics suited for type of work and the type of personality, which is a very unique work is complete when the job requires candidates to do without the help of others, or supervised at all times. There is a great possibility of "Faking" in the personality test. Many recent books have suggested that this can be avoided by using questions that can be used to calculate whether a "Social Desirability".

Assessment Centres and work samples are to help researchers to assess the extent to which candidates could play in a position to assess their weaknesses and strengths, (Jackson et, al., 2008) These finding methods of the candidate who is to select a wide range of technical and business games, including current employees who would work with the candidate as a team. Mathis and Jackson (2009) stated that "the most critical things are the techniques and tests used in and work sample activities and assessment centres to reflect the requirements of the work". In accordance with Torrington et al, (2008) is Plumbley (1985) describes for the assessment centres, and has the ability to provide evidence of how the candidates together with others, the degree of influence as they do other things, as verbally expressed, as is well can think clearly and coherently, and how well they can recognize their role within the group.

This is the method of selecting the most suitable candidates for supervisory positions and management. The time and costs level in assessment centres and work samples would not make it more profitable for all types of jobs. That is why an organization must decide what kind of methods they use when they are the most important election of the candidate.

Mathis and Jackson (2008) considers that the most important responsibility to fill vacancies in the organization is divided between the unity of the organization's HR and managers to find suitable candidates for organizations. Administrators would be the best kind of person they are looking for and what type of skills and knowledge of a candidate must have to do the job effectively. That is why, the management staff in the selection process is critical to ultimately choose the best possible and suitable to most applicants. Moreover, the unity of HR for substantive work of the cream of the candidates, apply for the process of selection with the administrative part of the selection process in general, testing and benchmarking candidates.

It is also important to maintain the legality and fairness of the entire process of selection. It's a matter of "filling available vacancies for capable applicants and to avoid discrimination based on colour, religion, sex, national origin, age, race and disability, (York, 2010)

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