MODULE 2 – RECRUITMENT AND SELECTION

• Recruitment - meaning and process,

• Purpose of Recruitment,
• Types of Recruitment - Internal - Job postings,
• Employee Referral Programs,
• Temporary worker pools and External recruitment – Virtual Job Fairs,
• Executive Search Firms, Employment agencies,
• Recruitment advertising. Factors affecting Recruitment,
• Recent Trends in Recruitment*
• Human Capital Management – Meaning and definition,
• ROI of HCM – Human capital ROI,
• Training Investment Value,
• Turnover Rates, Selection- meaning, selection procedure,
• Types of tests used in Selection,
• Consequences of selection decisions,
• Interview and Types of interviews

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 RECRUITMENT- MEANING AND PROCESS
The recruitment process includes-
• analyzing the requirements of a job and
• attracting employees to that job
Types of Recruitment - Internal vs External
Internal recruiting is the process of filling vacancies within a business from its existing workforce.
External recruiting is how a business looks to fill vacancies from outside.

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 INTERNAL RECRUITMENT- INTERNAL JOB POSTINGS, EMPLOYEE REFERRAL PROGRAMS,
TEMPORARY WORKER POOLS
1. Internal Job postings

2.Employee Referral Programs

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2. Temporary worker pools
• hired to assist employers to meet business demands
• allow the employer to avoid the cost of hiring a regular employee.
• Sometimes, if the temporary employee is successful, the employer will hire a temporary employee.

EXTERNAL RECRUITMENT – VIRTUAL JOB FAIRS, EXECUTIVE SEARCH FIRMS,

EMPLOYMENT AGENCIES
Also called an online job fair employers and job seekers each meet in a virtual environment, using chat
rooms, teleconferencing, webcasts, webinars and/or email to exchange information
about job openings

EXECUTIVE SEARCH FIRMS

• informally called headhunting
• is a specialized recruitment service
• organizations pay to seek out and recruit highly qualified candidates
• for senior-level and executive jobs
• e.g., President, Vice-president, CEO and non-executive-directors (NEDs)
• may also seek out and recruit other highly specialized and/or skilled positions in organizations for which
there is strong competition in the job market
Executive search (informally called headhunting) is a specialized recruitment service which organizations
pay to seek out and recruit highly qualified candidates for senior-level and executive jobs across the
public and private sectors, as well as not-for-profit organizations (e.g., President, Vice-president, CEO
and non-executive-directors (NEDs)). Headhunters may also seek out and recruit other highly
specialized and/or skilled positions in organizations for which there is strong competition in the job
market for the top talent, such as senior data analysts or computer programmers. The method usually
involves commissioning a third-party organization, typically an executive search firm, but possibly a
standalone consultant or consulting firm, to research the availability of suitable qualified candidates
working for competitors or related businesses or organizations

Employment agencies
• Companies which attempt to match the employment needs of an employer with a
worker having the required skill set and interests.
• privately owned while others are sponsored by government.

RECRUITMENT ADVERTISING
Recruitment advertising, also known as Recruitment communications and Recruitment agency, includes all
communications used by an organization to attract talent to work within it. Recruitment advertisements

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 may be the first impression of a company for many job seekers. In turn, the strength of employer
branding in job postings can directly impact interest in job openings.
Recruitment advertisements typically have a uniform layout and contain the following elements:
• the job title heading and location
• an explanatory paragraph describing the company, including the employer branding
• a job description
• entry qualifications
• the remuneration package (not always provided by the employer)
• further details and from where application forms may be sought

FACTORS AFFECTING RECRUITMENT

1.Organizational Factors-
a) Reputation of the organization.
b) Employee friendly or not
c) Geographical location
d) Resources allocated for the recruitment drive
e) Channels and methods used to advertise the recruitment drive.
f) Emoluments
2.Environment Factors-
a) Situation of labor market , demographics
b) Stage of development of the industry
c) Culture , Social , belief
d) Law of land and legal implications

RECENT TRENDS IN RECRUITMENT

• Growth of recruitment marketing technology is the latest recruitment trend in 2019

• Improving candidate experience with Artificial Intelligence is the latest recruitment trend
• Background verification and assessment technology is a top recruiting trend in 2019
• The death of the CV will be a major recruitment trend in 2019

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1.Growth of recruitment marketing technology is the latest recruitment trend in 2019
In simplified terms, recruitment is about selling roles to potential candidates. Amidst sustained talent
shortages in the latest skills, it is imperative to use recruitment marketing and new marketing
technologies to reach candidates through different channels at their preferred time of the day. Even
after fifteen years, LinkedIn remains one of the most potent sources of highly qualified and experienced
candidates as it has successfully managed to evolve the platform to fulfill the demands of the
recruitment industry. Similarly, recruiters need to make sure that they are implementing best practices
while performing daily routine jobs like job posting to get maximum visibility among the jobseekers.
Also Read: Recruitment Strategies to Attract and Retain Talent
This is why Search engine optimization (SEO) will continue to play an important role as it provides the
necessary visibility to job postings on the web. Most job applicants use search engines like Google to
find jobs, and therefore, SEO will remain an essential component of recruitment marketing toolkit.
Email marketing also continues to remain a vital means of communication with candidates.
In addition to all of this, one must not forget that with this smartphone generation youth, mobile apps, push
notifications and Whatsapp has become a preferred source of candidate communication. There is an
increase in the usage of Rich Communication Services (RCS) which in turn is leading to better
engagement rates. These tools can also integrate with ATS systems are therefore ideal for improving
talent engagement rates.

Improving candidate experience with Artificial Intelligence is the latest recruitment trend
Talent acquisition is one of the areas where artificial intelligence has found widespread acceptance. The
reason behind this is that AI has shown verifiable results in improving recruiter productivity, reducing
time to hire and hence improving candidate experience making it more intuitive and seamless. In 2019,
we can expect to see continued exploration of possibilities that can be achieved with the application of
AI, and the various ways in which candidate experience can be further simplified.
Whether it’s the bots that are making the application process faster or apps that simulate human
conversations through text boxes or voice commands, AI is making more job search more fun for the
candidates, enabling them to apply to jobs quickly and engage with employers with ease. Using these
AI systems recruiters will be able to proactively communicate with candidates, and provide them with
a 24/7 high value interaction consistently. Also Read: Why is Candidate Experience so Important?
• Background verification and assessment technology is a top recruiting trend in 2019
Background verification and assessment is another area where AI is promising to make an impact and 2019
will certainly show some of that result. While earlier employee background verification process was
manual and costly affair, often managed by external agencies, with Artificial Intelligence coming in the
picture, this space is also undergoing a transformation for good. AI and machine learning promise to

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 make the employee background verification process quicker, smarter, and more effective. An example
of AI application in this space includes the Israeli startup, Intelligo, which is using AI and ML to make
employee background verification 90% accurate. Another startup Vervoe introduced a hiring platform
that uses machine learning to screen and predict skill sets, besides automating employee background
verification.
In an age where digital fraud is on the rise and where recruiters spend multiple days on finding the right
candidates, it’s vital to make use of background screening technology to avoid waste of their valuable
time. Also, since the process of background assessment is multi-level, complex and time consuming, it
makes for a perfect area of AI application.
The death of the CV will be a major recruitment trend in 2019
With Applicant Tracking Systems taking over recruitment, most organizations now have their own private
database of profiles, stored on the cloud. This means that candidates don’t have to carry their CVs
everywhere they go for an interview. Also, we’re going to see a change in how employees interact with
candidates. Video interviews will become big where employers will have a chance to directly assess the
candidate on the basis of their soft skills, personality and knowledge without having to call them for a
face to face round to the office. Doing so will allow recruiters to easily assess candidates on a range of
skills, from individualism, to creativity and an awareness of technology.

HUMAN CAPITAL MANAGEMENT – MEANING AND DEFINITION

Human Capital Management, or HCM,-
• is the effective acquisition, employment, and
• development of a company’s employees through
• strategic and tactical practices, processes, and applications in order to maximize their economic value

ROI OF HCM – HUMAN CAPITAL ROI, TRAINING INVESTMENT VALUE, TURNOVER RATES
What Is Return on Investment (ROI)?

Return on Investment (ROI) is a -

• performance measure used to
• evaluate the efficiency of an investment or
• compare the efficiency of a number of different investments.
• directly measure the amount of return on a particular investment, relative to the investment’s cost.
• expressed as a percentage or a ratio.

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 ROI of HCM – Human capital ROI
Measuring human capital: Why, oh why?
a few reasons why you should measure your human capital.
1. To determine your human capital’s ROI
• As with any other resource, your human capital is an asset and expect to get a return on.
to judge the efficiency and effectiveness of your human capital
2. To identify gaps in human capital
• consider your organization’s overall objectives.
• For example, if your company’s objective is to be the best service provider in the IT industry, then having
exceptional IT skills is an essential attribute that your human capital needs to possess. But if your
organization’s objective is to be the highest grossing retailer, then exceptional IT skills probably isn’t
going to be at the top of your list!
3. To bridge the gap in your human capital
• the overall objective is identifying what you have, what you are lacking, and then determining how to
bridge the gap.
• ensure how you bridge the gap supports your company’s goals.

• For example, you might think that any gap could easily be resolved with the right training program.
However, if your company’s corporate strategy is to be the lowest cost provider, then spending a large
sum of money on a training program might not be the best answer.
How to measure human capital
• human capital is an intangible one, just like intellectual property or patents are.
• Intangible assets are no less valuable than tangible ones, it’s just that their value cannot be discerned
by touch.
• no one, straightforward way of measuring human capital
• There are many variables that affect it.
• relatively more straightforward is measuring your human capital’s return on investment (ROI).
Measuring your human capital’s ROI

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human capital’s return on investment :
• “Total Organizational Profits” - company has made in profits after it covered all of its expenses.
• “Investment on Human Capital” refers to the amount of money your organization has put in to develop
its human capital; i.e. recruitment and selection, training and development, compensation, etc…
• ROIs differ from one company to the next depending on their size, strategy, and industry, but bench-
marking is always considered good practice!

TRAINING INVESTMENT VALUE

The standard formula for computing your
ROI for training is ROI (percentage) =
((Monetary benefits – Training Costs)/Training Costs) x 100.
ROI may also be measured in terms of –
• decreased per-item product cost or time.
• how long it takes the average employee to make the widgets before the training.

TURNOVER RATES
Turnover rate refers-
• to the percentage of employees leaving a company within a certain period of time.
• High turnover can be costly to an organization because departing employees frequently need to be
replaced.
• involuntary turnover occurs when an employee is terminated from a position.

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 SELECTION PROCEDURE

TYPES OF TESTS USED IN SELECTION

• Selection test is a device that uncovers the information about the candidate which is not known
through application blank and interview.
• Milton M. Blum has defined test as “a sample of an aspect of an individual’s behaviour, performance
and attitude”.
• simply be defined as a systematic procedure for sampling human behavior.
The meaning of test :
1. Objective:
• ‘objective’ means the validity and reliability of measuring job related abilities and skills.
• The psychological tests should show that the test is predictive of the important aspects of role
behavior relevant to the job for which the candidate is under evaluation.
• objectivity also refers to equality of opportunity for those being tested avoiding discrimination in
terms of caste, creed, sex, religion etc.
2. Standardized:

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• ‘standardized’ refers to the uniformity of procedure administered and the environment in which the
test is taken.
uniformity refers to testing conditions which include the time limit, instructions, testee’s state of mind and
health room temperature, test instruments, etc
3. Sample of Behaviour:
• a total replication of reality of human behaviour in any given testing situation is just not possible.
• Therefore, the behaviour predicted through test is likely to be representative one, or say, a sample of
behavior.

TYPES OF TESTS USED IN SELECTION: ABILITY TESTS

1. Aptitude Tests:
• Aptitude tests measure ability and skills of the testee.
• measure and indicate how well a person would be able to perform after training and not what he/she
has done.
• aptitude tests are used to predict the future ability/performance of a person.
2. Achievement Tests:
• measure what a person can do based on skill or knowledge already acquired by him/her.
• usually used for admission to specific courses in the academic institutions.
• grades in previous examinations are often used as indicators
• Indian industries have now started conducting these tests
• Achievement tests are also known by the names, proficiency tests, performance, occupational or trade
tests.

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When we ask a person, or say, a student to study the paper human resource management, then what he
learns is ‘achievement’. But if we test the student to see if he would profit from certain training to the
subject, it is ‘aptitude’.
3. Intelligence Tests:
• Intelligence tests measure general ability for intellectual performance.
• The core concept underlying in intelligence test is mental age. It is presumed that with physical age,
intelligence also grows.
• if a five year old child does the test, for six years or above his/her mental age would be determined
accordingly.
• Intelligence Quotient (IQ) IQ = Mental Age/Actual Age × 100
• It means that the intelligence quotient is a ratio of mental age to actual age multiplying by 100(to
remove decimal).
4. Judgment Tests:
• designed to know the ability to apply knowledge in solving a problem.

TYPES OF TESTS USED IN SELECTION: PERSONALITY TESTS

Personality related Tests:
• These tests measure predispositions, motivations and lasting interests of the people.
Personality tests are subsumed under four broad categories as given below:
1. Interest Tests
2. Personality Tests
3. Projective tests
4. Attitude Tests

1. Interest Tests:
• designed to discover a person’s area of interest, and to identify the kind of work that will satisfy him.
• Interest is a prerequisite to successfully perform some task.
most widely used interest test is Kuder Reference Record
2. Personality Tests:
• also known as ‘personality inventories’.
• measure the dimensions of personality i.e., personality traits such as interpersonal competence,
dominance- submission, extroversions-introversions, self-confidence, ability to lead and ambition.
• personality tests -Minnesota Multiphasic Personality Inventory (MMPI), FIRO, and California Personality
Inventory.

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3. Projective tests:
• based on pictures or incomplete items.
• candidates asked to narrate or project his own interpretation on these.
• reflects his /her own values, motives, attitude, apprehensions, personality, etc.
• most widely used tests of this type are the Rorschach Blot Test (RBT) and the Thematic Apperception
Test (TAT).
• The RBT consists of an ink blot and the testee is asked to describe what he/she sees in it.
• TAT - the testee is shown pictures and, then, is asked to make-up a story based on the pictures.
4. Attitude Tests:
• designed to know the candidate’s tendencies towards favouring or otherwise to people, situations,
actions, and a host of such other things.
• Test of social desirability, authoritarianism, study of values, and employees morale are the well-known
examples of attitude tests.

DEVELOPING A TEST PROGRAMME

Developing a Test Programme:
• Developing a test programme is never simple- requires careful planning, experiment, technical
knowledge, etc.
• Services of experts in psychology and psychometrics and use of statistical techniques are also
requisitioned.
The main steps generally involved in developing a sound test program are following:
(1) Deciding the objectives of testing programme:
• Developing a test program starts with deciding the objectives it has to achieve.
• The objectives of the test program may be hiring, promoting and counseling of people.
Initially, test program may be designed for a few jobs and then may be gradually expanded to cover all jobs
in the organization
(ii) Analysing Jobs:
• Jobs are duly analysed to identify as to which-
o human traits and

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o skills are necessary for effective performance of jobs.
(iii) Choosing tests to measure characteristics:
• Several tests i.e. ‘Battery of Tests’ are chosen to measure different characteristics.
• The tests may be chosen keeping in view such factors as reliability, validity, ease of administration, level
of difficulty, and the cost involved in different tests.
• The choice of the tests is generally based on certain parameters like experience, previous research and
guesswork.
(iv) Administering the tests:
• administered on the applicants under consideration to measure the predetermined skills and traits.
(v) Establishing criteria of job success:
• Success criteria are laid down in terms of output in quantity and quality-
o attendance record,
o rate of accidents,
o rate of promotion,
o professional achievement, etc.
(vi) Analysing the results of tests:
• test scores secured by the applicant are carefully analysed in the light of success criteria.
• Based on this, the final decision is taken either to select the applicant for further processing or rejection.

LIMITATIONS OF TESTS

Tests suffer from certain limitations also.

Hence, while applying tests for selection of candidates the following guidelines should be observed:
(i) Tests should be used as supplements rather than as substitute for any method of selection.
(ii) Tests are better at predicting failure than success. They often determine which applicants will not or
cannot perform a job satisfactorily instead who can or will perform in effective and efficient manner.
(iii) Tests are not precise measures of one’s skills and traits but only samples of one’s total behaviour. So to
say, tests with highest scores do not necessarily mean better choices for a job than those with lower
scores.
(iv) Tests should be validated in the organisation in which these are administered.
(v) In order to make the test scores comparable, tests should be administered under standard conditions to
all applicants tested for a particular job”.

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(vi) Tests should be designed, administered, interpreted and evaluated only by trained and competent
persons.
(vii) The candidates should be provided with samples of tests or answering queries so as to warm up them
before the test is administered.

CONSEQUENCES OF SELECTION DESCISION

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 INTERVIEW AND TYPES OF INTERVIEWS.
Structured vs Unstructured Interviews
The Telephone Interview
• The structured interview uses preset questions, which are asked to all the candidates.
• On the other extreme, in an unstructured interview, the questions which are asked are not determined
in advance, rather they are spontaneous.

1. The Telephone Interview.

• speed up the interview process and minimizing time-wasting,
• Remove the weaker candidates earlier on.
• hearing the candidate’s tone of voice and assessing their direct answers will provide a much more
detailed insight into their personality.
How Long Should It Take?
• take about 30 minutes, giving you both a chance to warm up for 5 minutes, check each other out for
20 minutes and warm down for 5.
• If longer than 30 minutes with engaging conversation, that’s a very good sign.

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2.The Video Interview.
• Video interviews (Skype, Google Hangouts, FaceTime)
• adds a certain level of importance and professionalism to the ‘call’
• removes the temptation for either party to multi-task or lose focus.
How Long Should It Take?
• should last roughly 30 minutes.
3. The Panel Interview.
• same as individual, face-to-face interviews, but with two or more interviewers in the room.
• advantage -panel interviewing is that it precludes any personal biases that might creep into the
assessment process.
• Each interviewer will pick up on different characteristics, strengths and weaknesses and together
(hopefully) make a much fairer judgement.
• the sole or final step in the interviewing process to take place.
How Long Should It Take?
• should last 45 Minutes
• giving you a suitable amount of time to work out whether the person is genuinely right for the role.
4. The Assessment Day
• used to assess larger groups of interviewees at the same time, for a range of different skills.
• Common amongst graduate employers, they are a great way to evaluate candidates in more detail, for
a longer period of time.
• If interviewing a large group and your offices are only small- good idea to seek out a local assessment
centre to host the day for you.
• commonly used as the very first recruitment step
How Long Should It Take?
• take place across one day
• some companies have been known to host week-long assessment interviews.
5. Group Interviews.
• used a lot less regularly than the other interview techniques.
• conduct group interview in two key ways… like an-
1. individual interview; asking exactly the same questions that you would ask in an individual interview,
openly, to the whole group, allowing candidates the chance to compete to impress.

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2. Or like the assessment day, with brief introductions, leading into group tasks and activities.
How Long Should It Take?
• should last roughly an hour and a bare minimum of 45 minutes.
6. Individual (face-to-face) Interviews.
• by far the most popular and efficient form of assessment.
• Allowing you to get up close and personal with each candidate while keeping an eye on their body
language is far more effective than any other interviewing format.
How Long Should It Take?
30 minutes to Over an hour
Advantages:
• You can build rapport more easily
• You can thoroughly assess the individual
• You have opportunity to dig deeper
• You can read their body language
• You can test the candidate’s commitment
• You’re more flexible with location/ style (informal/ formal).
Disadvantages:
• Candidates can rehearse answers
• It’s time-consuming
• You’ll need a trained interviewer.
• Interviewer bias will affect the decision
• There’s no one present to assess the interviewer’s method
• It’s costly
• Interview techniques could be inconsistent
• Possible interview fatigue

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 INDUCTION
Induction of Employee is the first step towards gaining an employees' commitment, Induction is aimed at
introducing the job and organization to the recruit and him or her to the organization. Induction involves
orientation and training of the employee in the organizational culture, and showing how he or she is
interconnected to (and interdependent on) everyone else in the organization.
The new employee’s first contact with his or her physical and human working environment is extremely
important, since it will condition his or her relationship with the company. The employee must feel
supported and important. The first person he or she will meet is the immediate supervisor, who should
present the corporate profile in addition to providing information on the organization’s background,
values, clientele, services offered, staff, and expected behaviour. The immediate superior will also
specify the newcomer’s role. The points listed below should be covered during this meeting.
Purpose and Need
An employee has to work with fellow employees and his supervisor. For this he must know them, the way
they work and also the policies and practices of the organization so that he may integrate himself with
the enterprise. Any neglect in the area of induction and orientation may lead to high labour turnover,
confusion, wasted time and expenditure.
A good induction program should cover the following:
• The company, its history and products, process of production and major operations involved
in his job.
• The significance of the job with all necessary information about it including job training and
job hazards.
• Structure of the organization and the functions of various departments.
• Employee’s own department and job, and how he fits into the organization.
• Personnel policy and sources of information.
• Company policies, practices, objectives and regulations.
• Terms and conditions of service, amenities and welfare facilities.
• Rules and regulations governing hours of work and over-time, safety and accident prevention,
holidays and vacations, methods of reporting, tardiness and, absenteeism.
• Grievances procedure and discipline handling.
• Social benefits and recreation services.
• Opportunities, promotions, transfer, suggestion schemes and job satisfaction.

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 An induction program consists primarily of two steps:
• 1. General orientation by the staff: It gives necessary general information about the history
and the operations of the firm. The purpose is to help an employee to build up some pride and
interest in the organization.

• 2. Specific orientation by the job supervisor: The employee is shown the department and his
place of work; the location of facilities and is told about the organization’s specific practices
and customs. The purpose is to enable the employee to adjust with his work and environment.

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