Meaning and Definition
Finding potential applicants to fill current or future positions within an organisation is referred to as recruitment. Through recruitment, the organisation is able to find the people it needs in terms of both quantity and kind to continue operating.
Typically, there is an effort made to pique the attention of job seekers, identify applicants who are interested in the position, and assemble a group of possible workers from whom management may choose the best candidate for the position.
One of the most important factors in effectively running a company is the hiring process. People who successfully handle all of the organization’s activities are more fit for it since an organization’s performance is determined by the quality of its workforce. Even while some incompetent workers may be made to improve via training and strict oversight, hiring competent and driven individuals is unquestionably desirable.
Time, effort, and money may all be saved by selecting the appropriate candidate for the job. Therefore, in order to meet the demands of the organisation, a manager must hire people of high calibre.
“Recruitment is the process of looking for potential workers and encouraging them to apply for employment in the organisation,” says Edwin B. Flippo.
Barber defines recruitment as “those processes and actions undertaken by the organisation with the main aim of locating and recruiting prospective personnel.”
Dale Yoder asserts that “recruitment is a process to locate the sources of personnel to satisfy the staffing schedule needs and to utilise effective strategies for attracting that manpower in enough numbers to permit successful selection of an efficient working force.”
Objectives for Hiring
1) Business Growth: Recruitment is necessary for a company to develop since hiring signals a company is expanding. Additionally, it is only possible to hire competent people and acquire the skill set necessary for the present stage of company growth.
One of the emerging industries that has prompted businesses to engage web designers and IT professionals is e-commerce, or buying and selling via the internet.
2) Filling Vacancies Caused by Staff Turnover: Staff turnover occurs in every firm at some point in time. Chain businesses like Sainsbury’s and ASDA, for instance, often hire parking attendants, checkout personnel, and other staff employees. People will need to be replaced on a regular basis for a variety of reasons, such as higher education. Consequently, hiring is necessary to fill these positions.
3) Changing Job Roles: In the modern world, the nature of employment is always evolving. Next year, it’s possible that the talents that appear useful now could become obsolete, necessitating the acquisition of new ones. As a result, firms will continue to hire more workers and generate new opportunities.
4) Internal Promotion: Businesses encourage staff to pursue more difficult and lucrative positions inside the business. New hires must take the place of those who are promoted in the hierarchy.
5) Increasing Workload: As the workload grows, the company needs additional staff members as well as those with higher levels of expertise. Through training, current workers may be encouraged to acquire new abilities that will benefit their professional development, boost their loyalty to the company by encouraging them to work there for longer periods of time, and close the skill gap.
Employees may suggest friends, family members, or acquaintances who have the abilities required for a position and get rewards via an employee referral programme.
Factors affecting Recruitment
1) External Factors: These forces or factors are those that the organisation cannot control.
The following are a number of external elements that have an impact on recruitment:
(i) Supply and Demand: The availability of labour, both within and outside the organisation, has a crucial role in the hiring process. The organisation will need to depend on internal resources, such as training and developing personnel, if there is a high demand for experts inside the company but a limited supply of professionals in the market.
ii) Unemployment Rate: The expansion of the economy is another element that influences the pool of candidates. Unemployment may result from a lack of positions inside the organisation and excess labour on the market.
iii) Labor Market: The organization’s recruitment efforts are influenced by the state of the labour market in the region where it is located. Ordinary methods, such as posting job openings on notice boards or making an announcement at official meetings, etc., will result in the recruitment of more people than is required.
iv) Image/Goodwill: An employer’s reputation may interfere with hiring. The foundation for creating an organization’s image is its actions. If a company has a strong reputation as an employer, it is simpler to recruit and keep people than it is for a company with a bad reputation.
v) Political-Social-Legal Environment: Government policies that prevent favouritism in recruiting and employment have a direct impact on recruitment practises. The Government of India, for instance, has proposed laws providing job reservations for members of scheduled castes, scheduled tribes, physically challenged, etc.
Trade unions also have a crucial influence in hiring. The management’s ability to pick viable applicants is hampered by this. If a candidate does not meet the requirements established by the union, recruitment sources may be restricted by union laws.
vi) Competitors: The hiring process is also impacted by the hiring practises of the rivals. In order to compete in the market, organisations often alter their hiring practises to align with those of their rivals.
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2) Internal Factors: Internal factors are those that the organisation itself can control. The recruiting programme is influenced by a number of internal organisational elements, including:
(i)Human Resource Planning: With the aid of efficient HR planning, it is possible to determine how many personnel need to be hired as well as the qualifications they should possess.
ii) Recruitment Policy: The organization’s recruitment policy outlines its hiring objectives. It also provides a general plan for carrying out the recruiting effort.
iii) Firm Size: The size of the organisation is yet another crucial aspect that influences the hiring process. The organisation will seek to hire additional personnel to carry out its tasks if it intends to grow its operations and market.
iv) Cost: Since the employer is responsible for paying the recruiting costs, organisations look for sources of hiring that provide more work for less money.
Recruitment Procedure
The hiring process involves a variety of steps where competent applicants are sought for in accordance with job specifications, job descriptions, and human resource planning.
1) Recruiting Planning: The recruitment process begins with recruitment planning. It entails figuring out the following:
(i) Contacts: Organizations usually want to make the best decision possible out of a broader pool of applicants by attracting more candidates than are necessary. Additionally, it is done because a large number of applicants are unwilling to work for the company and a small number of them may not meet the requirements.
Therefore, anytime a recruiting drive is considered, the organisation must consider the number of applications it needs to receive in order to fill all of its openings with qualified applicants.
ii) Type of Contacts: This refers to the individuals who should be informed about job openings in accordance with the job description and job specification.
2) Identifying Recruiting Sources: Once a recruitment strategy with the quantity and kind of possible applicants is finalised, it is necessary to attract them in a manner that would encourage them to apply for jobs. Consequently, it is crucial to pinpoint the sources from which these candidates could be drawn.
3) Contacting Sources: The process of contacting these sources is started after the final choice of the sources used to choose the possible candidate. Recruiter and recruitee are the two key parties involved in the two-way process of recruitment. The recruiter might choose the applicant based on the candidate’s information.
Similar to the recruit, the recruit decides whether to join the organisation or apply elsewhere based on the facts provided about it. As a result, the organisation must decide whether information should be disclosed to the applicants, particularly when it comes to outside sources.
4) Application Pool: Regardless of the recruiting strategy utilised, the ultimate goal is to draw an increasing number of applicants in order to preserve selection flexibility. As soon as the sources of recruitment are contacted, the organisation begins to receive applications from prospective applicants. The quantity of applications depends on the kind of organisation, the nature of the employment, and the circumstances in certain human resource markets.
5) Selection Process: Classifying candidates into groups in order to employ those who are more qualified for the position is the selection process. Highly specialised approaches are needed throughout the selection process. As a result, the selection procedure requires skilled workers who are experienced in conducting interviews and employing selection exams.
6) Evaluation and Control: In the future, recruiting efforts must be more effective. It should be remembered that hiring new employees is a costly procedure that involves expenses like the recruiter’s compensation, marketing expenses, management wages, and several other expenses. Thus, a review of the hiring procedure is required.
Recruitment Sources and Techniques
The methods for choosing applicants for the recruiting process are known as sources of recruitment. One learns about the availability of many qualified individuals via the sources of recruiting. The recruiting sources are taken into consideration when the recruitment strategy detailing the quantity and kind of potential applicants is finalised. Finding potential recruiting sources to draw in these prospects is thus vital.
Internal Sources
This method involves selecting candidates from the organization’s pool of current employees to fill unfilled positions.
When hiring internally, the following strategies or tactics might be used:
1) Transfer and Promotion: Internal hiring may be done via transfers and promotions within an organisation. Transfer refers to internal mobility within the same grade or from one position to another.
Promotion, on the other hand, is the moving of an individual from a lower level job to a higher level one associated with changes in the work, duties, prestige, and value.
2) Job Posting: This internal recruiting strategy gives workers plenty of time to apply for open positions by posting announcements of job openings at strategic locations around the company, such as employee lounges, cafeterias, elevators, etc. Currently, one of the most inventive methods of hiring in businesses is via job postings.
Many organisations see job posting as a necessary component of a successful career management system. As a result, it is seen to be the simplest and most popular approach used by companies to let staff members know about job opportunities.
Employee referrals are when a person uses a personal connection to fill a job opening. It is a recommendation for a candidate, whether it be a friend or a close family, from an existing employee. It is regarded as a “it takes one to know one” strategy. This system has a serious flaw in that it promotes favouritism, which results in the selection of individuals from one’s caste or group, regardless of whether they are qualified for the position.
4) Former Workers: Due to the fact that companies often contact former employees, former employees are rapidly emerging as a viable source of recruiting. Because of their connections to the business, they are more reliable as an inside source. Many of the retired workers could be open to returning to the workforce on a part-time basis or perhaps suggest someone who might be interested in working for the company.
Sometimes those who left a firm to raise their families or finish their college studies are eager to work again after their specific goals have been met. People who have previously left the workplace for another position can be enticed to come back for the big wage package.
The usage of job sharing and flextime programmes may help the organisation recruit retirees or other people who have previously worked there. Retaining past workers is advantageous since the company is aware of their work ethics.
5) Previous Job Seekers: In addition to internal sources, previous job applicants may also be approached. It is a quick and affordable approach to fill unforeseen or unexpected employment openings. Also taken into consideration are those who showed up “walk-in.” Unskilled and semi-skilled positions are probably better suited for earlier walk-ins.
For instance, a company that needed two cost accountants may get in touch with the prior eligible candidates. This specific activity may meet the demands of the company and, as a result, assist those people who are not happy with their current position with another company.
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Advantages of internal sources
1) Familiarity: The group’s members are well acquainted with one another. Because the applicants are insiders, the organisation is aware of their abilities and talents. Employees, on the other hand, are also aware of the working conditions and qualifications for the open positions.
2) Greater Use of Internal Talent: Relying on internal hiring enables the business to make better use of the skills of its current workforce. For instance, exceptional workers may merit promotion, while some individuals may perform better after changing careers.
3) Cost-effectiveness: Hiring internal candidates saves the organisation money and time since there is no need to tell and remind current workers to apply for open positions.
4) Motivational Value: Internal hiring encourages and motivates employees. In anticipation of promotions and transfers, the staff members work well.
Disadvantages of internal sources
1) Limited Options: The pool of candidates for internal hiring is small. It restricts the company’s options and flexibility when choosing the best applicants for the open positions. Because of this, it’s possible that the business will be unable to choose the finest outside solution.
2) Inbreeding: A corporation that relies too much on internal hiring indicates that it does not wish to employ new candidates who are available outside. Existing personnel may not be dynamic; even if they get a promotion or a transfer, they could go on working and acting in the same manner they did in their former position.
3) Lack of Competition: When there are no qualified applicants outside the company competing for the position, employees may feel they will automatically be promoted based on seniority. They may not want to keep proving them, as a result.
4) Conflict: The likelihood of antagonism and conflict among staff members who want to be promoted to the open positions may rise. Those who are not promoted perform less effectively and lose satisfaction as a result.
External Sources
The following tactics or procedures may be used by organisations to fill employment slots from outside:
1) Direct Methods: In this approach, recruiters are sent to academic and professional institutions in order to develop relationships with the public and displays. Several direct techniques are:
i) Campus recruitment: In order to find eligible applicants, recruiters use the campus recruiting approach, visiting the placement offices and campuses of educational institutions including engineering and management schools. People may pick the job position that best matches them from the various employment alternatives, and recruiters have a huge pool of candidates to choose from.
ii) Scouting: Scouting is a strategy in which departmental representatives are sent to locations where recruiting efforts are taking place. They make touch with potential applicants who are looking for work. An first interview is held with applicants. Other forms of this exact strategy include job fairs and indoctrination workshops.
iii) Recruitment at the Factory Gate: This direct hiring technique entails posting a notice with information about open positions outside the factory gate.
2) Indirect Techniques
(i) Advertisements: Today, this kind of media is just as alive, active, and inventive as consumer advertising. The job descriptions often provide a short summary of the duties, benefits, and prospects for advancement within the company. This approach is appropriate when the organisation wants to reach a wide target audience and needs a significant number of qualified people with a global distribution.
ii) Employee Trade Associations/Clubs: Attending meetings, seminars, conferences, and other social events held by employee trade associations/clubs is another option to find qualified applicants.
iii) Professional Associations: Organizations representing key professions such as medicine, engineering, accounting, auditing, and management provide a wealth of options to find suitable applicants for technical, scientific, and managerial cadre openings.
iv) Other Reputable Firms: These days, hiring human resources from reputable companies has grown popular. Only a small number of businesses and organisations have a solid reputation for productivity, efficiency, and industrial harmony. Many businesses have made an effort to find suitable people from these businesses to fill open jobs.
3) Third-Party Techniques
(i) Private employment agencies: These are often utilised and charge candidates relatively little money. They focus on a variety of professions, including ordinary office assistance, salespeople, accountants, technical employees, engineers, and executives. These commercial organisations serve as a liaison between companies and workers.
ii) State or public employment agencies, commonly referred to as labour exchanges or employment agencies. Along with a broad variety of services including counselling, job hunting, and information on the labour market, employees, and pay rates, they serve as a clearinghouse for jobs and employment-related information.
Schools, colleges, and professional organisations all provide chances for student recruitment. Blue-collar, white-collar, and management people are supplied by these general and technical/professional institutions.
They maintain comprehensive information records regarding employed executives.
iv) Professional organisations, recruiting firms, or executive recruiters For positions in management, marketing, and production engineering, these consulting businesses provide highly qualified candidates.
v) Trade Unions: Trade unions have a large supply of skilled and manual labourers. Few organisations have explicit agreements in place to offer preference throughout the hiring process to applicants suggested by the unions.
vi) Casual Labor or Applicant at the Gate: Many sectors rely on the casual worker who daily signs in at the factory gate or hiring office.
vii) Unconsolidated Applications: A select few individuals apply for certain job openings. In this situation, employers might go over the application materials of applicants who contacted the company on their own to inquire about openings.
viii) Voluntary Organizations: These groups, such as social organisations and private clubs, may also hire individuals who are physically disabled, widowed, married, elderly, retired, etc.
ix) Computer Data Banks: When a business requires a certain kind of person, job descriptions and work requirements are uploaded into a computer, where they are compared to the resume information held there.
Merits of External Sources
1) Ample Options: From a large application pool, organisations are free to choose people.
2) Injecting New Talent: Individuals with special abilities and knowledge can be chosen to inspire current staff members and introduce innovative working practises.
3) Motivational Force: In order to compete with outside prospects for career advancement, internal staff are urged to put in a lot of effort. An employee would be encouraged to work as hard and as efficiently as possible in such a competitive environment.
4) Long-Term Benefits: The organisation may learn new concepts if qualified employees join. As a result, workers could feel pressured to perform to the best of their abilities in order to advance professionally and get rewards.
Demerits of External Sources
1) Expensive: Using several sources of recruiting is a difficult task, and hiring expenses may increase significantly.
2) Time-consuming: Finding the proper staff takes time, as does advertising, screening, testing, and selection. If the ideal applicant cannot be located, the whole process must be redone.
3) Demotivating: Current workers who have devoted a lot of time to the company may be against the hiring of candidates from outside the company. They get demotivated and lose interest in doing their jobs when they believe that the organisation has not recognised their contributions.
4) Uncertainty: It’s unsure if the company will be able to find and recruit the best people. It could choose to work with inappropriate people who might find it difficult to adapt to the new circumstances.
Internal versus External Recruitment
| Internal Recruitment | External Recruitment |
| 1) Internal recruitment is faster as it searches its own pool of internal employees. | External recruitment takes time as it tries to find out a suitable candidate from outside the company. |
| 2) It does not cost much as it does not take the services of any external agency. | This process is costly as publishing of advertisements through different mediums is required. |
| 3) It inspires the employees to work better. | It depresses and demotivates the employees. |
| 4) It minimises the chances of recruiting fresh talent. | It maximises the chances of recruiting fresh talent. This in turn increases the chances of getting innovative ideas in the organisation. |
| 5) It saves the time of recruiting officials. | It is time-consuming for recruiting officials. |
Importance of Recruitment
1) Identifying and training prospective job candidates for higher job roles requires determining the present and future requirements. Finding out the organization’s current and future demands in accordance with job analysis and human resource planning activities is important for any organisation.
2) Develops and Expands the Candidate Pool: Recruitment builds a talent pool of applicants to make it easier to choose the best prospects for the organisation. It is beneficial to get qualified candidates for each open position at the lowest possible cost. It has been noted that as the pool of possible applicants grows, so does the value of selection to an organisation.
Actually, a bigger pool of competent candidates suggests that there are more qualified candidates available for the open jobs. Therefore, a selection method has a great chance of identifying just highly qualified people. On the other hand, if there are less applications than jobs available as a result of the recruiting drive, the whole hiring process may need to be repeated.
3) Increases Success Rate of Selection: Recruitment improves the success rate of the selection process by reducing the proportion of candidates that are either less qualified or possess the undesirable KSAs (knowledge, skills, and abilities) for the recruiting organisation. This kind of processing requires resources including staff time, materials, and physical space.
If the recruiting programme yields candidates that don’tmeet the prerequisites of the open posts, the outcomes may be disastrous. The costs spent in screening the wrong applicants may be ineffective. Additionally, the additional time needed for thorough hiring and screening of human resources raises organisational costs.
4) Fulfills Organizational Duties: The goal of recruiting is to fulfil the organization’s social and legal obligations regarding the demographic make-up of its workforce. The demographic characteristics of people who are recruited and chosen have often been used to assess an organization’s compliance with different laws and directions.
The characteristics of the application pool are closely correlated with the demographic characteristics of the chosen applicants. It goes without saying that if the recruiting programme is unable to provide the acceptable candidate pool, the selection programme will not be able to produce the necessary group of competent workers.
5) Increases and Evaluates Effectiveness: Recruitment increases both the organization’s current and future effectiveness. Additionally, it evaluates the efficiency of several recruitment strategies and sources for all kinds of job candidates.
6) Decreases Turnover: After being hired and chosen, the recruiting process reduces the likelihood that job candidates would leave the company during the first stage of placement. Potential workers are subsequently retained as a consequence of this.
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