Recruitment

Recruitment
• Recruitment is the process of finding and attracting capable applicants
for employment.

• Byers & Rue define recruitment as

“ The process of seeking and attracting a pool of people from which
qualified candidates for job vacancies can be chosen”

• Recruitment is a process starts with identification of the need for

human resources and ends with getting the prospective employees for
apply for the vacancies available.
The aim of an effective recruitment program is to attract the best people
for the job and aid the recruiter by making a wide choice available.
 Factors affecting Recruitment
 There are many factors that affect the recruitment program. They are
classified as Organizational or Internal factors, and Environmental or
External factors.
Organizational Factors (Internal) :
 An organizations reputation depends on its size, area of business,
profitability, management etc., in addition to its philosophy and values.
 Organizational culture and the attitude of its management.
 Geographical location of the vacant position.
 Emoluments value that the company offers.
Environmental Factors (External) :
 Situation in the labor market.
 Law of the land and the legal implications.
 Sources of Recruitment
 Different sources of recruitment can be employed, depending on
various factors like level of position, number of people required, time
available and the funds allocated for recruitment.

Internal Sources : External Sources :

 Transfer  Advertisements
 Promotion  Employment Exchanges
 Present Employees  Education Institutions
 Unsolicited Applicants
 Casual Callers
 Labor Contractor
 Labor Union
 Consulting Agencies
 Internal Sources
1. Transfers: Transfer involves shifting of persons from
present jobs to other similar places. These don't involve
any change in rank, responsibility and prestige. The
numbers of persons don't increase with transfer but vacant
posts may be attended to.
2. Promotions: Promotions refers to shifting of persons to
positions carrying better prestige higher responsibilities
and more salaries. The higher positions falling vacant may
be filled up from within the organization. A promotion
doesn't increase the number of persons in the organization.
A person going to get a higher position will vacate his
present position.
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3. Present Employees: The present employees of an enterprise
may be informed about likely vacant position.
 The employees recommend their relations or persons intimately
known to them. Management is relieved of botheration for
looking out prospective candidates.
 The persons recommended by the employees will be suitable for
the job because they know the needs & requirement of various
positions.
 The existing employees take full responsibility for those
recommended by them and try to ensure their proper behaviour
and performance.
 This method of recruiting employees is suitable for lower
position only. It may create nepotism and favouritism.
 External Sources
1. Advertisement: Advertisement is the best method of recruiting persons for
higher and experienced jobs. The advertisements are given in local or national
press, trade or professional journals.
 The requirements of jobs are given in the advertisement. The prospective
candidates evaluate themselves against the requirement of jobs before sending
their applications.
 Management gets a wider range of candidates for selection. The flood of
applications may create difficulties in the process.
2. Employment Exchanges: Employment Exchanges run by the government are
also a good source of recruitment.
 Unemployed persons get themselves registered with these exchanges. The
vacancies may be notified with the exchanges, whenever there is a need. The
exchange supplies a list of candidates fulfilling required qualification .
 Exchanges are a suitable source of recruitment for filling unskilled, semi-
skilled, skilled and operative posts.
 External Sources
1. Advertisement: Advertisement is the best method of recruiting persons for
higher and experienced jobs. The advertisements are given in local or national
press, trade or professional journals.
 The requirements of jobs are given in the advertisement. The prospective
candidates evaluate themselves against the requirement of jobs before sending
their applications.
 Management gets a wider range of candidates for selection. The flood of
applications may create difficulties in the process.
2. Employment Exchanges: Employment Exchanges run by the government are
also a good source of recruitment.
 Unemployed persons get themselves registered with these exchanges. The
vacancies may be notified with the exchanges, whenever there is a need. The
exchange supplies a list of candidates fulfilling required qualification .
 Exchanges are a suitable source of recruitment for filling unskilled, semi-
skilled, skilled and operative posts.
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3. Education Institutions: The jobs in trade and industry are becoming technical
and complex. These jobs require certain amount of educational and technical
qualifications. The employers maintain a close liaison with universities and
technical institutions. The students are spotted during the course of their studies.
Junior level, executives or managerial may be recruited in this way through
campus recruitment.
4.Unsolicited Applicants: Persons in search of employment may contact
employers through telephone, by post or in person. Generally employers with
good reputation get many unsolicited applications. If an opening is there or likely
to be there these applications are considered. Personnel department may maintain
a record of unsolicited applications database. When jobs suitable for these persons
are available these persons are available these are considered for employment.
5. Casual Callers: Management may appoint persons who casually call on them
for meeting short-term demands. This will avoid following a regular procedure of
selection. These persons are appointed for short periods only. They need not be
paid retrenchment or lay off allowance. This method of recruitment is economical
because management does not incur a liability in pensions, insurance and fringe
benefits.
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6. Labour Contractors: It is quite common to engage contractors for the supply
of labour. When workers are required for short period and are hired without going
through the full procedure of selection etc.., contractors maintain regular contracts
with work sat their places and also bring them to the cities at their own expense.
The persons hired under this system are generally unskilled workers.
7. Labour Unions: Labour unions are one of the sources of external recruitment.
The job seekers are required to register with labour unions, & the labour unions
are requiring to supply the names of persons for filing the vacancies. This method
may encourage good co-operation between business firms and labour unions,
active participation of persons in labour unions, the development of leadership
qualities in workers, etc.,
8. Consulting Agencies: Consulting agencies are one of the important sources of
recruitment, especially for big companies. Consulting agencies are specialised
agencies which recruit people on behalf of their clients. They invite application
for jobs specified by their clients from job seekers through advertisements, screen
the application, interview the candidates and select the suitable candidate. They do
these services for their clients for some Fees
 Merits of Internal Sources
The following are the merits of internal sources of recruitment:
 It creates a sense of security among employees when they are
assured that they would be preferred in filling up vacancies.
 It improves the morale of employees, for they are assured of the
fact that they would be preferred over outsiders when vacancies
occur.
 It promotes loyalty and commitment among employees due to
sense of job security and opportunities for advancement.
 The employer is in a better position to evaluate those presently
employed than outside candidates.
 This is because the company maintains a record of the progress,
experience and service of its employees.
 Time and costs of training will be low because employees
remain familiar with the organisation and its policies.
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 Relations with trade unions remain good. Labour turnover is
reduced.
 As the persons in the employment of the company are fully aware
of, and well acquainted with, its policies and know its operating
procedures, they require little training and the chance are that
they would stay longer in the employment of the organisation
than a new outsider would.
 It encourages self-development among the employees. It
encourages good individuals who are ambitious.
 It encourages stability from continuity of employment.
 It can also act as a training device for developing middle and top-
level managers.
 Demerits of Internal Sources
The following are the demerits of internal sources of
recruitment:
 1. Recruitment of internals leads to inbreeding and discourages new blood with
new ideas from entering into the organization.
 2. It is possible that internal sources ultimately dry up and hence it may be
difficult to find suitable persons from within the organization.
 3. In case of certain jobs such as advertising, style, designing, basic research
etc recruitment from within is not desirable.
 4. As promotion is based on seniority, the danger is that really capable hands
may not be chosen. The likes and dislikes of the management may also play an
important role in the selection of personnel.
 5. Since the learner does not know more than the lecturer, no innovations
worth the name can be made. Therefore, on jobs which require original
thinking, this practice is not followed.
 6. Generally for middle level managers internal source is rarely used, however
for promoting blue collar workers to white collar jobs internal source is more
desirable
 Merits of External Sources
The following are the merits of External sources of recruitment:
1. It will help in bringing new ideas, better techniques and
improved methods to the organisation.
2. The cost of employees will be minimised because candidates
selected in this method will be placed in the minimum pay scale.
3. The existing employees will also broaden their personality.
4. The entry of qualitative persons from outside will be in the
interest of the organisation in the long run.
5. The suitable candidates with skill, talent, knowledge are
available from external sources.
6. The entry of new persons with varied expansion and talent will
help in human resource mix.
 Demerits of External Sources
The following are the demerits of external sources of
recruitment:
1. Orientation and training are required as the employees remain
unfamiliar with the organisation.
2. It is more expensive and time-consuming .Detailed screening is
necessary as very little is known about the candidate.
3. If new entrant fails to adjust himself to the working in the
enterprise, it means yet more expenditure on looking for his
replacement.
4. Motivation, morale and loyalty of existing staff are affected, if
higher level jobs are filled from external sources. It becomes a
source of heart-burning and demoralisation among existing
employees.
 Difference Between Internal & External Sources
Bases of Difference Internal Sources External Sources
Meaning Recruitment is form within It is the recruitment from
the organization. outside employees.
Bases It is generally based on It is strictly based on merit
seniority cum merit. and qualifications.
Time Involved It is less time consuming. It is a time consuming
exercise.
Cost It is a cheap source of It is an expensive source of
recruitment. recruitment. It involves time,
expense and resources.
Reference No reference of the Since enterprise does not
employees is needed since know about person,
all his records are available references about previous
with the concern. work, conduct and character
Since are needed.
Choice There is a limited choice There is a wide choice from
from among the present a large number of applicants
employees.
 Recruitment Process
Recruitment is the process of location, identifying, and
attracting capable applications for jobs available in an
organization. Accordingly, the recruitment process comprises
the following five steps:

1. Recruitment Planning: The first involved in the recruitment

process is planning.
 Hire, planning involves to draft a comprehensive job
specification for the vacant position, outline its major and minor
responsibilities; the skills, experience and qualifications needed;
grade and level of pay; starting date; whether temporary or
permanent; and mention of special condition, if any, attached to
the job to be filled.
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2. Strategy Development: Once it is known how many with what
qualification of candidates are required, the next step involved in
this regard is to device a suitable strategy for recruitment the
candidates in the organization.
 The strategic considerations to be considered may include issues
like whether to prepare the required candidates themselves or hire
it from outside, what type of recruitment method to be used, what
geographical area be considered, for searching the candidates,
which source of recruitment to be practiced, and what sequence
of activities to be followed in recruiting candidates in the
organization.
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3. Searching: This step involves attracting job seekers to the
organization. There are broadly two sources used to attract
candidates. These are: 1. Internal Sources 2. External Sources.
4. Screening: Through some view screening as the starting point of
selection, we have considered it as an integral part of recruitment.
The reason being the selection process starts only after the
application have been screened and short listed.
 Those who do not qualify are straight way eliminated from the
selection process.
 The techniques used for screening candidates may vary
depending on the source of supply and method used for
recruiting.
 Preliminary applications, de-selections tests and screening
interviews are common techniques used for screening the
candidates.
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5. Evaluation and control: Given the considerable
involved in the recruitment process, its evaluation and
control is, therefore, imperative.
 The costs generally incurred in a recruitment process
expenses, Cost of outsourcing or overtime while
vacancies remain unfilled, Cost incurred in recruiting
unsuitable candidates.