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RECRUITMENT

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ANNOTATED OUTLINE INTRODUCTION
Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings  Certain influences, however, restrain a firm while choosing a recruiting source such as:       Poor image  Unattractive job  Conservative internal policies  Limited budgetary support  Restrictive policies of government

Recruitment

Overview of the Recruitmen t Process — Organizatio n Recruitment .

Overview of the Recruitme nt Process — Applicant Recruitment .

Strategic Issues in Recruiting     Recruitment Goals Recruitment Philosophy Internal of External Sources? Countercyclical Hiring Recruitment .

6-3 Recruitment: matching the needs of applications and organisations I n f o r m a t io n F l o w O r g n e e q u a e m p a n i s a t io n d f o r h i g Ih n t e r n a l A p p l i c a n li t y l o y e e s E P o te n a p p l ic t sn e e d s u i t a b t ia l a n t s ’ f o r le jo b n v ir o n m e n t : E c o n o m i c a n d S o c ia l. T e c h n o lo g i c a l a n d P o l it ic a l Recruitment .

6-4 Situational factors impacting recruitment The process of recruitment is influenced by a variety of environmental factors.      Economic factors Social factors Technological factors Political factors Legal factors  The Factories Act  The Apprentices Act  The Employment Exchanges Act  The Contract Labour Act  Bonded Labour System Act  The Child Labour Act Recruitment .

6-5 Sources of Recruitment The sources of recruitment may broadly be divided into two categories: 1. Both have their merits and demerits. external sources. Recruitment . internal sources and 2.

The candidates can choose a right vacancy where their talents can be fully utilised. As years roll by. No expenses are incurred on advertising. (ii) Suitable: The organisation can pick the right candidates having the requisite skills. available outside an organisation. (iv) Satisfying: A policy of preferring people from within offers regular promotional avenues for employees.6-6 Merits and demerits of hiring people from within Merits (i) Economical: The cost of recruiting internal candidates is minimal. They will work with loyalty. . It may have to sacrifice quality and settle for less qualified candidates. ‘Known devils are better than unknown angels!’. Recruitment Demerits (i) Limited choice: The organisation is forced to select candidates from a limited pool. (ii) Inbreeding: It discourages entry of talented people. may prove to be a blessing for inefficient candidates. (iii) Inefficiency: Promotions based on length of service rather than merit. It motivates them to work hard and earn promotions. (iv) Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited. (iii) Reliable: The organisation has knowledge about the suitability of a candidate for a position. the race for premium positions may end up on a bitter note. commitment and enthusiasm. higher-level positions in an organisation. They do not work hard and prove their worth. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities.

to test and to select suitable employees. screen. Injection of fresh blood: People with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working. Tapping multifarious sources of recruitment is not an easy task. new ideas could find meaningful expression. Time consuming: It takes time to advertise. Uncertainty: There is no guarantee that the organisation. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. the process has to be repeated. . It may end up hiring someone who does not ‘fit’ and who may not be able to adjust in the new set-up. Such a competitive atmosphere would help an employee to work to the best of his abilities. will be able to hire the services of suitable candidates. Long term benefits: Talented people could join the ranks. Demotivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. either.6-7 Merits and demerits of hiring people from outside Merits Wide choice: The organisation has the freedom to select candidates from a large pool. etc. Where suitable ones are not available. Persons with requisite qualifications could be picked up. forces them to work with less enthusiasm and motivation. The feeling that their services have not been recognised by the organisation. Recruitment Demerits Expensive: Hiring costs could go up substantially. a competitive atmosphere would compel people to give of their best and earn rewards. ultimately.

Job posting: It is a method of publicising job openings on bulletin boards. electronic media and similar outlets by a company.  Recruitment . from one job to another. on the other hand.6-8 Methods Of Recruitment Internal methods Promotions and transfers: Promotion is the movement of an employee from a lower level position to a higher level position with increase in salary  Transfer.  Employee referrals: It is a kind of recommendation from a current employee regarding a job applicant. is a lateral movement within the same grade.

 It‘s an excellent means of locating potential employees in those hard-to-fill positions. The recommender earns a reward and the company can avoid expensive recruiting search – in case the candidate gets selected. and eagerness to see their friends in the company may come in the way of hiring a suitable candidate. nepotism.  Recommenders may confuse friendship with job competence.  Recruitment .6-9 Possible benefits and costs of employee referrals Recommender gives a realistic picture about the job. The applicant can weigh the pros and cons carefully before handing over the CV. The applicant is more likely to accept an offer if one is made and once employed. to have a higher job survival. Factors such as bias.

few available workers Loose market: low employment.Recruiting Talent Externally  Labor Market  Area from which applicants are to be recruited.   Tight market: high employment. many available workers  Factors determining the relevant labor market:      Skills and knowledge required for a job Level of compensation offered for a job Reluctance of job seekers to relocate Ease of commuting to workplace Location of job (urban or nonurban) Recruitment .

Outside Sources of Recruitment   Advertisements Unsolicited applications and resumes Internet recruiting Employee referrals Executive search firms Educational institutions Professional associations   Labor unions Public employment agencies Private employment agencies Temporary help agencies Employee leasing         Recruitment .

of course. is not easy.6-10 Direct methods  Campus recruitment It is a method of recruiting by visiting and participating in college campuses and their placement centres. this method has to be used with lot of care and caution. Possibly the most popular way of hiring the best brains in the country. Recruitment . Campus hiring.

6-13 Indirect methods  Newspaper advertisements  Television and radio advertisements Third party methods  Private employment search firms  Employment exchanges  Gate hiring and contractors  Unsolicited applicants/walk-ins  Internet recruiting Recruitment .

Improving the Effectiveness of External Recruitment Calculate Yield Ratios Training Recruiters External Recruitment Realistic Job Previews Recruitment .

the firm can meet increased demand by allowing an outside specialist agency to undertake part of the work. The employee benefits in the form of higher pay. Cont… Recruitment . selection and training could be avoided. However. to mutual advantage. Subcontracting: To meet a sudden increase in demand for its products and services. Employees may slow down their pace of work during normal working hours in order to earn overtime daily. In course of time. an overworked employee may prove to be less productive and turn out less than optimal performance. these payments do not accrue regularly. for any reason. overtime payments become quite routine and if. the firm may sometimes go for subcontracting – instead of expanding capacities immediately. Expansion becomes a reality only when the firm experiences increased demand for its products for a specified period of time. employees become resentful and disgruntled. The employer benefits because the costs of recruitment. Meanwhile.6-14 Alternatives to recruiting Overtime: Short term fluctuations in work volume could best be solved through overtime.

Employee leasing: Hiring permanent employees of another company who possess certain specialised skills on lease basis to meet short-term requirements – although not popular in India – is another recruiting practice followed by firms in developed countries. Cont… Recruitment . In this case the firm can avoid the expenses of recruitment and the painful effects of absenteeism. It’s a big business idea in United States these days ($3-$4 billion industry). It can also avoid fringe benefits associated with regular employment. temporary workers do not remain loyal to the company. Such an arrangement is beneficial to small firms because it avoids expense and problems of personnel administration. labour turnover.6-15 Alternatives to recruiting Temporary employees: Employees hired for a limited time to perform a specific job are called temporary employees. In this case. A short term increase in demand could be met by hiring temporary hands from agencies specialising in providing such services. However. individuals work for the leasing firm as per the leasing agreement/arrangement. They are particularly useful in meeting short term human resource needs. etc. they may take more time to adjust and their inexperience may come in the way of maintaining high quality.

surveys. This function is more commonly outsourced when firms are in seasonal business and have cyclical stuffing needs. more closely. because they do not have the time or expertise to deal with the situation. benchmark studies. HR heads are no longer keeping activities like resume management and candidate sourcing in their daily scrutiny. Many businesses have started looking at outsourcing activities relating to recruitment. statutory compliance etc. training. payroll processing.6-16 Alternatives to recruiting Outsourcing: Any activity in which a firm lacks internal expertise and requires on unbiased opinion can be outsourced.. Recruitment .

 Surveys and studies: they could be carried out to find out the suitability of a particular source for certain positions. Recruitment .6-17 Evaluation of the sources of recruitment  Time lapse data: they show the time lag between the date of requisition for manpower supply from a department to the actual date of filling the vacancies in that department  Yield ratios: they show the number of contacts required to generate a given number of hires at a point of time.

(example: $0) = total hires (example: 119) Cost to hire one employee = $414 Recruitment . total paid (example: $2.  Cost of Recruitment (per employee hired) S C A +A +R +N C F B C = H H SC AC AF RB NC H = source cost = advertising costs.300) = no-cost hires. total for the month (example: $19.  100 resumes received. walk-ins. etc.000) = referral bonuses. total monthly expenditure (example: $28.000) = agency fees. nonprofit agencies. 50 found acceptable = 50% yield.External Recruitment Considerations Yield Ratio   Percentage of applicants from a recruitment source that make it to the next stage of the selection process.

External Recruitment  Sources of Organizational Recruiters Considerations    Professional HR recruiters HR generalists Work team members Knowledge of the recruited job’s requirements and of the organization Training as an interviewer Personable and competent to represent the organization  Requirements for Effective Recruiters    Recruitment .

6-18 Recruitment Policies And Procedures A recruitment policy indicates the organisation’s code of conduct in a specific area. Recruitment policy statement In its recruitment activities. the company will:   Advertise all vacancies internally Reply to every job applicant promptly  Inform job applicants the basic details and job conditions of every job advertised    Process all applications with efficiency and courtesy Seek candidates on the basis of their qualifications Aim to ensure that every person invited for interview will be given a fair and thorough hearing Cont… Recruitment .

6-19 Recruitment Policies And Procedures The company will not:   Discriminate unfairly against potential applicants on the basis of sex. religion.. Of course. race. etc. caste. The procedures have to be framed in a flexible manner so as to permit the HR department to respond to the requests made by various departments and by potential candidates quickly. Knowingly make any false or exaggerated claims in its recruitment literature or job advertisements A recruitment procedure will lay down a clear path to be followed by the HR department while hiring people. Recruitment .

As the Personnel Manager of Pepsi Foods remarked “we hire people who are capable of growing the business rather than just growing with the business”. There are a maximum of four reporting levels. Cont… Recruitment . They must have a winner’s mindset and a passion for creating a dynamic change. They must have the ability to deal with ambiguity and informality. Recruitees must be capable of thinking outside the box.6-21 Recruitment: Indian Experiences Recruitment of trainees: expectations of Indian companies Pepsi: Pepsi is a flat organisation. motivation. cutting the cake of conventional barriers whenever and wherever necessary. Executives here emphasise achievement. the ability to deliver come what may.

the ability to work long and stressful hours. Employees must be willing to say ‘yes sir’ to anybody.6-22 Recruitment of trainees: expectations of Indian companies Reebok: As Reebok’s customers are young. Other criteria include: communication skills. Employees are expected to have a passion for the fitness business and reflect the company’s aspirations. mobility. attention to personal appearance and assertiveness without aggression. the company places emphasis on youth. The average age at Reebok is 26 years. The willingness to get one’s hands dirty is important. They must also have an ability to cope with informality. Recruitees should be willing to do all kinds of job operations. a flat organisation and be able to take decisions independently and perform consistently with their clearly defined goals. Recruitment . Indian Hotels: The Taj group expects the job aspirants to stay with the organisation patiently and rise with the company.

7.6-23 Recruiters these days expect Bschool graduates to possess certain skills: Skills recruiters want in India 1. 4. 5. 3. 6. 2. Ability to work in a team Analytical and problem solving skills Communication and other soft skills Creativity and resourcefulness Leadership potential General Managerial skills Entrepreneurial skills Recruitment .

etc.)?  Has a personnel specification/candidate’s profile (in terms of physique. hours of work. etc.) been prepared?  Has a notice of the vacancy been circulated internally?  Has a job advertisement been agreed? Have details of the vacancy been forwarded to relevant agencies?  Do all potential candidates (internal or external) know where to apply and in what form?  What are the arrangements for drawing up a shortlist of candidates?  What about the interviewing dates and arrangements for selection of candidates?  Have the shortlisted candidates or waitlisted candidates been informed sufficiently in advance and asked to furnish detailed references?  Have unsuitable candidates or waitlisted candidates been informed of their position in a polite way thanking them for their interest and attendance? Recruitment . intelligence.6-20 Questions to be asked while hiring people    Has the vacancy been agreed by a responsible manager? Is there an up-to-date job description for the vacancy? What are the conditions of employment for the vacancy (salary. qualifications experience. aptitude. perquisites. holidays. fringe benefits.