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 According to Edwin B. Flippo,

Recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the
organization”. Recruitment is the activity that links the
employers and the job seekers.

 A few definitions of recruitment are:

A process of finding and attracting capable applicants for

employment. The process begins when new recruits are sought
and ends when their applications are submitted. The result is a
pool of applications from which new employees are selected.
 It is the process to discover sources of manpower to
meet the requirement of staffing schedule and to
employ effective measures for attracting that
manpower in adequate numbers to facilitate effective
selection of an efficient working force.

The process of getting potential applicants for actual or

anticipated organizational vacancies.
Features of Recruitment Function

 Continuous process
 Linking activity
 Positive function
 Important function
 Pervasive function
 Fulfillment of Manpower needs

 Increase the pool of job candidates at minimum cost.

 To increase the success rate of the selection process by reducing the number of visibly
under qualified or overqualified job applicants.

 To reduce the probability of selected job applicants leave the organization in short

 To meet the organization's legal and social obligations regarding the composition of
its work-force.
Recruitment Planning at ICICI

 ICICI scans more than 350,000 applicants annually.

 They hold monthly manpower forecasting meetings
 In this they will decide the product mix required for
this month.
 They also use yields models to arrive at a number.
Process of recruitment

 Strategy Evaluation
Developm Searching Screening and
ent Control
Factors affecting Recruitment
 External factors affecting recruiting:
 Demand and supply

 Unemployment rate

 Political, Legal and Governmental factors

 Internal factors affecting recruiting:
 Employer’s Brand

 Recruitment policy

 Geographical spread of the organisation

 Company’s growth rate

 The consistency of the firm’s recruitment efforts with its

strategic goals
 The available resources, types of jobs to be recruited and
Philosophies of Recruitment

 Traditional : To get as many people as possible

to apply for the job

 Realistic : The needs of organisation is

matched with the needs of the candidate. In this
regard two approaches are adopted:
--- RJP
--- JCQ
 Realistic Job Preview (RJP )

 It provides complete job related information to the applicants.

 It includes both positive and negative aspects of job.
 Job applicants will evaluate the compatibility among the jobs
and their personal needs.
 Advantages:
- Lower rate employee turnover
-Higher level of job satisfaction and performance
 -More beneficial at the entry level
Job Compatibility questionnaire (JCQ)
 It is used to determine whether an applicant’s
preferences matches the characteristics of job.
 It covers the following factors:
--- Task Requirements
--- Physical Environment
--- Customer characteristics
--- Peer group
--- Compensation preferences
--- Work schedule
 JCQ’s are given to job seekers who are familiar with
the job to be filled in.
Sources of Recruitment
Internal Sources
 Present Employees
- Transfers
- Promotions
 Employee Referrals
 Internal Job posting
 Succession planning
External sources

 Advertisement
 Employment Exchanges
 Unsolicited Applicants
 Head hunters
 Labour contractors
 Campus recruitment
 Walk-ins
 Job websites
 Social networking sites

 Internal Sources:-
 Persons who are already working in the organization
constitute the internal sources.
 Retired employees, dependents of deceased employees
relatives of current employees etc constitute internal
 Merits: Demerits :-
 Economical Limited choice
 Suitable Inbreeding
 Reliable Inefficiency
 Satisfying Bone of contention
 External Sources:-
 Sources lie outside the organization
 The organization can have the services of :
 Employees working in other organizations
 Job aspirants registered with employment exchanges
 Students from reputed educational institutions
 Candidates referred by unions, friends, existing employees and
 Candidates forwarded by search firms and contractors
 Candidates responding to advertisements issued by
 Unsolicited applications/ walk-ins
 Merits Demerits
 Wide choice Expensive
 Source of new ideas Time consuming
 Motivational force De motivating
 Long term benefits Uncertainty
Types of Recruitment

 Centralised

 Decentralised
Centralized recruitment:

HR department/personnel at the central office/

corporate office/ H.Q performs the functions of

 Here the cost of recruitment per candidate is

 a centralized promotion and transfer procedure
is followed.
 The line and zonal managers can concentrate on
their work than bothering about recruitment.
 It ensures effective and suitable placement to
Decentralized recruitment:

Recruitment is undertaken at unit or zone level.

 In this kind of recruitment it is possible to recruit

most suitable candidates.
 Recruitment is done as and when there is need.
 Delays in recruitment can be avoided
 The units have full information about recruitment
process which helps for the planning.
 Units are free to use prospective methods of
 The units can exercise better control over persons
who are recruited.
Recent trends in Recruitment


In India, the HR processes are being outsourced from more

than a decade now. A company may draw required personnel
from outsourcing firms. The outsourcing firms help the
organization by the initial screening of the candidates
according to the needs of the organization and creating a
suitable pool of talent for the final selection by the

“Buying talent” (rather than developing it) is the latest
mantra being followed by the organizations today. Poaching
means employing a competent and experienced person
already working with another reputed company in the same
or different industry; the organization might be a competitor
in the industry. A company can attract talent from another
firm by offering attractive pay packages and other terms and
conditions, better than the current employer of the
Many big organizations use Internet as a source of recruitment. E-
recruitment is the use of technology to assist the recruitment process.
They advertise job vacancies through worldwide web. The job seekers
send their applications or curriculum vitae i.e. CV through e mail using
the Internet. Alternatively job seekers place their CV’s in worldwide
web, which can be drawn by prospective employees depending upon
their requirements.
Cost Benefit Analysis of Recruitment

 Cost Benefit Analysis of recruitment Includes:

 Efficiency and effectiveness of recruiters
 Sources of recruits
 The method of recruiting
How to measure the effectiveness of
recruitment process ?

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

It helps to determine which recruiting methods

produce the most qualified applicants.

 To determine this ratio the percentages of

applicants from each recruiting source are
calculated and then compared.

 For eg. If ABC company used advertisement and

also college recruiting to fill a position yield ratio
would be calculated for each method
 Cost of recruitment or hire

It is calculated by adding the total advertising

costs, i.e. cost for all the agencies, the incentives
paid to employees for referrals, and then dividing
that total by the number of new hires brought on
during the period in question.
 Quality of hire

This measure can provide management with an

assessment of the quality of new employees being
recruited and hired.

The percentage of quality of hire is a relative value. it

will be up to the management to determine whether
this represents an excellent, good, fair or poor level.
Cost Associated with recruitment process

 Cost of time spent by personnel at various levels in

recruitment process
 Cost of advertisement
 Cost of travel. Etc
 Administrative and other cost