M-205 HUMAN RESOURCE MANAGEMENT

Unit-3
Recruitment
&
Selection

Dr. Prakriti Dixit Porwal

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 Recruitment
◊ Recruitment refers to the organizational activities and processes aimed at
providing information to a pool of potential candidates to attract them to
apply for job openings in an organization.

◊ In other words, recruitment is searching for prospective employees and

stimulating and encouraging them to apply for jobs in an organization.

◊ Job descriptions and specifications provide the

needed information upon which the recruitment
process rests.
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Cont..

◊ According to Edwin B. Flippo, “recruitment is the process of searching

for prospective employees and stimulating them to apply for jobs in
the organization.”

◊ Prof. R. W. Griffin said, “recruitment is the process of attracting

individuals to apply for open jobs.”

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Cont..

◊ Recruitment is a two-way street.

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 Types of Recruitment needs

Planned

Sudden/
Anticipated
Unexpected

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 Purpose and Importance of Recruitment

◊ Attract and encourage more and more candidates to apply to the

organization.

◊ Create a talent pool to select the best candidates for the organization.

◊ Determine present and future requirements of the organization.

◊ Recruitment is the process that links employers with employees.

◊ Increase the pool of job candidates at minimum cost.

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Cont..

◊ Help increase the success rate of the selection process by decreasing

the number of visibly underqualified or overqualified job applicants.

◊ Meet the organization’s legal and social obligations regarding the

composition of its workforce.

◊ Begin identifying and preparing potential job applicants who will be

appropriate candidates.

◊ Increase organization and individual effectiveness of various recruiting

techniques and sources for all types of job applicants.

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 Source of Recruitment
Internal External
Recruitment at factory gate
Promotion
Casual callers

Advertisement
Transfer
Employment Agencies

Educational Institutes

Recommendation

Labor Contactor

Career Fair
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 Internal Recruitment

Advantages Disadvantages
◊ Better Selection ◊ Limited choice
◊ Increases employee morale ◊ Failed applicants become
◊ Adaptability discontented
◊ Cost-effective ◊ In-breeding of status quo
◊ Time saver ◊ Favoritism/ Nepotism
◊ Need of training

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 External Recruitment

Advantages Disadvantages
◊ Wider choice ◊ Expensive
◊ Influx new idea ◊ Time consuming
◊ Fairness ◊ Hiring mistake
◊ Can handle rapid growth ◊ Reduce promotion
opportunities
◊ Adaptability problem

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 Selection

◊ Selection of an employee is a process of choosing the applicants, who

have the qualifications to fill the vacant job in an organization.

◊ In others words, selection can also be explained as the process of

interviewing the candidates and evaluating their qualities, which are
required for a specific job and then choosing the suitable candidate
for the position.

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Cont..

◊ It is a negative process in which the most suitable person is

selected and the others are rejected.

◊ According to David and Robbins, “Selection process is a managerial

decision-making process to predict which job applicants will be
successful if hired.”

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 Significance of Selection
◊ Good Talent

◊ Better Efficiency

◊ Reduced Cost of Training and Development

◊ Reduced Turnover

◊ Job Motivation

◊ Other Benefits

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 Process of Selection
• Preliminary Screening
• Selection test
• Employment interview
• Reference and Background Checks
• Selection Decision
• Medical Examination
• Job Offer
• Contract of Employment

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 Selection Tests

◊ Aptitude tests

◊ Personality tests

◊ Skills tests

◊ Situational judgment tests

◊ Behavioral assessment tests

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 Selection Interview Techniques
◊ One-to-One
◊ Situational Interviews
◊ Panel Interviews
◊ Phone Interviews
◊ Video Interviews
◊ Behavioral Interviews
◊ Stress Interviews
◊ Group Interviews

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 Cost-Benefit Analysis

◊ Cost-benefit analysis is a useful tool for evaluating the financial

feasibility and potential benefits of recruitment initiatives.

◊ It involves comparing the costs of recruitment against the expected

benefits of the recruitment process to determine whether the
recruitment initiative is worth pursuing.

◊ In the context of recruitment, cost-benefit analysis can help

organizations evaluate the costs of various recruitment strategies, such
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Cont..

as job fairs, advertising, employee referrals, and recruitment agencies,

against the benefits of those strategies, such as the quality of the
candidates, time-to-hire, and employee retention.

◊ Eg. : an organization may choose to invest in a recruitment agency that

charges a high fee but promises to provide qualified and experienced
candidates in a short period. To evaluate the cost-effectiveness of this
recruitment strategy, the organization would need to calculate the costs of
the recruitment agency's services against the expected benefits of hiring
high-quality candidates quickly and efficiently.
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◊ How can companies know if their recruitment process is working
well?

◊ Three ways to measure the effectiveness of recruitment process :

1. Yield ratio
2. Cost of recruitment or hire and
3. The quality of hire

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 Yield Ratio

◊ Yield ratio are usually used to measure how many candidates were
hired from a total number of applications. But, their usefulness can
expand beyond that to reflect every stage of the hiring process and
source of hiring.

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Cont..

◊ Eg.: 1
offer
1 in 5 / 20%
5
2nd Interview 1 in 3 / 33%
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Interview
1 in 2 / 50%
30
Assignments 1 in 4 / 25%
120
Screening 1 in 2 / 50%
240
Application

Recruiting Yield Pyramid

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Cont..

◊ The more yield ratios decrease over time, the more efficient your
process become.

◊ In the above eg., instead of 15 candidate only 10 are interviewed, in 1st

round of interview, out of 30 who received an assignment. This signifies
a decreased yield ratio –saving your interviewing team time & effort.

◊ Note that decreasing the number of candidates who pass through each
stage shouldn’t decrease quality of hire.

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Cont..

◊ Yield metrics can also help in figuring out whether recruitment

strategies and source are effective.
◊ Eg.:

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 Cost Per Hire
◊ It is a recruiting metric that measures the costs associated with the
process of hiring new employees.
◊ These include expenses such as compliance costs, administrative
costs sourcing, hiring manager costs third-party expenses,
technological expenses, employee referral expenses etc.

*CPH= Cost per hire

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Cont..

◊ For example, if you hire 50 people for the year, and you spend an
estimated Rs.100,000 on the hiring process annually, that would
mean that your cost per hire is Rs.2,000/-.

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 Quality of Hire

◊ Quality of hire, also referred to as QoH, is a measurement of the

value that a new hire brings to a company and how much they
contribute to a company's overall bottom line through their own
work.

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◊ PR : Average job performance of new hires (e.g. 80 out of 100

based on quantifiable targets or hiring managers’ feedback)

◊ HP : percentage of new hires reaching acceptable productivity within

a determined period

◊ HR : retention rate after a year

◊ N : number of indicators

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Key- Note
PPTs are summarised content of Text Book.

It is not the replacement of Text Books.

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