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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: 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


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

Effective Recruiting
External Factors Affecting Recruiting
Supply of workers Outsourcing of white-collar jobs Fewer qualified candidates

Other Factors Affecting Recruiting

Consistency of recruitment with strategic goals Types of jobs recruited and recruiting methods Non-recruitment HR issues and policies Successful prescreening of applicants Public image of the firm

Effective Recruiting (contd)

Advantages of Centralizing Recruitment
Strengthens employment brand Facilitates applying strategic priorities Reduces duplication of HR activities Reduces cost of new HR technologies Builds teams of HR experts Provides better measurement of HR performance Allows for sharing of applicant pools

Measuring Recruiting Effectiveness

Evaluating Recruiting Effectivenes s

What to Measure

How to Measure

TABLE 51 Selection Devices that Could be Used to Initially Screen Applicants Selection Device
Construct General mental ability tests Conscientiousness tests Integrity tests Method Work sample tests Job knowledge tests Structured interviews Biographical data Grade point average Ratings of training and experience 0.54 0.48 0.51 0.35 0.23 0.11 0.51 0.31 0.41

Validity for Predicting Job Performance*

Note: *Higher is better.

Source: Kevin Carlson et al., Recruitment Evaluation: The Case for Assessing the Quality of Applicants Attracted, Personnel Psychology 55 (2002), p. 470.


Recruiting Yield Pyramid

The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted.

Effectiveness 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

Cost Per Hire

Cost Per Hire:CPH = AD + AF +ER + T + Relo + RC + 10%.
AD represents your ad costs AF are agency fees ER are employee referral costs T is travel Relo is relocation costs RC represents the fully loaded cost of all recruiter's time 10% is a historically derived figure for all overhead and administrative support.

Sources of Recruitment
Internal Sources External Sources

Internal Candidates: Hiring from Within

Advantages Disadvantages
Foreknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding strengthens tendency to maintain the status quo


Merits and demerits of hiring people from outside

Merits Wide choice. Injection of fresh blood Motivational force Long term benefits

Demerits Expensive Time consuming De motivating Uncertainty

FIGURE 51 Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

Recruitment Process

Recruitment Process
1. Identify vacancy 2. Prepare job description and person specification 3. Advertising the vacancy 4. Managing the response 5. Short-listing 6. Arrange interviews 7. Conducting

Finding Internal Candidates

Promotions and transfers
Job Posting Rehiring Former Employees

Hiring from Within

Succession Planning (HRIS)

Outside Sources of Candidates

Locating Outside Candidates
1 2 3 4 5 Recruiting via the Internet Advertising Employment Agencies Temp Agencies and Alternative Staffing Offshoring/Outsourcing 6 7 8 9 Executive Recruiters On Demand Recruiting Services (ODRS) College Recruiting Referrals and Walk-ins

Outside Sources of Candidates (contd)

Recruiting via the Internet
Advantages Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation Disadvantages Exclusion of older and minority workers Excessive number of unqualified applicants Personal information privacy concerns of applicants


An Indian Online Employment Portal

Source: courtesy of firefly e-ventures.

The Media Choice

Advertising for Outside Candidates

Selection of the best medium depends on the positions for which the firm is recruiting.
Newspapers: local and specific labor markets Trade and professional journals: specialized employees Internet job sites: global labor markets

Effective Ads
Create attention, interest, desire, and action (AIDA). impression

Employment Agencies
Types of Employment Agencies

Government Employment Exchanges

Nonprofit Agencies

Private Agencies

Why Use a Private Employment Agency

No HR department: firm lacks recruiting and screening capabilities. To attract a pool of qualified applicants. To fill a particular opening quickly. To attract more minority or female applicants. To reach currently employed individuals who are more comfortable dealing with

Outside Sources of Candidates

Outside Sources of Candidates Avoiding Problems with Employment

Provide the agency with accurate and complete job descriptions. Make sure tests, application blanks, and interviews are part of the agencys selection process. Review candidates accepted or rejected by your firm or the agency for effectiveness and fairness of agencys screening process. Screen agency for effectiveness in filling positions.

Temp Agencies and Alternative Staffing Benefits of Temps

Increased productivitypaid only when working Allows trial run for prospective employees No recruitment, screening, and payroll administration costs Increased labor costs due to fees paid to temp agencies Temp employees lack of commitment to the firm

Costs of Temps

Concerns of Temp Employees

Dehumanizing, impersonal, and discouraging treatment by employers. Insecurity about employment and pessimism about the future. Worry about the lack of insurance and pension benefits. Being misled about job assignments and whether temporary assignments are likely to become fulltime positions. Being underemployed while trying return to the full-time labor market. Anger toward the corporate world and its values; expressed as alienation and disenchantment.

FIGURE 511 Guidelines for Using Temporary Employees 1. Do not train your contingent workers. Ask their staffing agency to handle training. 2. Do not negotiate the pay rate of your contingent workers. The agency should set pay. 3. Do not coach or counsel a contingent worker on his/her job performance. Instead, call the persons agency and request that it do so. 4. Do not negotiate a contingent workers vacations or personal time off. Direct the worker to his or her agency. 5. Do not routinely include contingent workers in your companys employee functions. 6. Do not allow contingent workers to utilize facilities intended for employees. 7. Do not let managers issue company business cards, nameplates, or employee badges to contingent workers without HR and legal approval. 8. Do not let managers discuss harassment or discrimination issues with contingent workers. 9. Do not discuss job opportunities and the contingent workers suitability for them directly. Instead, refer the worker to publicly available job postings. 10. Do not terminate a contingent worker directly. Contact the agency to do so.
Source: Adapted from Bohner and Selasco, Beware the Legal Risks of Hiring Temps, Workforce, October 2000, p. 53.

Working with a Temp Agency

Invoicing. Make sure the agencys invoice fits your companys needs. Time sheets. The time sheet is a verification of hours worked and an agreement to pay the agencys fees. Temp-to-perm policy. What is the policy if you want to hire a temp as a permanent employee? Recruitment of and benefits for temp employees. How does the agency plan to recruit and what sorts of benefits it will it pay? Dress code. Specify the attire at each of your offices or plants. Equal employment opportunity statement. Get a statement from the agency that it does not discriminate when filling temp orders.

Offshoring/Outsourcing White-Collar and Other Jobs

Political and Military Instability Resentment and anxiety of U.S. employees/unions Cultural Misunderstandings

Costs of foreign workers

Main Issues

Customers security and privacy concerns

Special training of foreign employees

Foreign contracts, liability, and legal concerns

Executive Recruiters (Headhunters)

Outside Sources of Candidates

Contingent-based recruiters Retained executive searchers Internet technology and specialization trends 1. Make sure the firm is capable of conducting a thorough search. 2. Meet individual who will handle your assignment. 3. Ask how much the search firm charges. 4. Never rely solely on the recruiter to do reference checking.

Guidelines for Choosing a Recruiter

Outside Sources of Candidates (contd)

College Recruiting
On-campus recruiting goals To determine if the candidate is worthy of further consideration To attract good candidates On-site visits Invitation letters Assigned hosts Information packages Planned interviews Timely employment offer Follow-up Internships


Outside Sources of Candidates (contd)

Employee Referrals
Referring employees become stakeholders. Referral is a cost-effective recruitment program. Referral can speed up diversifying the workforce. Relying on referrals may be discriminatory. Seek employment through a personal direct approach to the employer.


Improved Productivity Through HRIS: An Integrated Technology Approach to Recruiting

Requisition Management System

Integrated Recruiting Solution Integrated Employee Recruitment System Screening Services

Hiring Management


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, hours of work, fringe benefits, perquisites, holidays, etc.)? Has a personnel specification/candidates profile (in terms of physique, intelligence, aptitude, qualifications experience, 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?

Recruiting A More Diverse Workforce

Single Parents

The Disabled

Older Workers


Minorities and Women

Developing and Using Application Forms

Uses of Application Information

Applicants education and experience

Applicants progress and growth

Applicants employment stability

Applicants likelihood of success

Application Forms and the Law

Education Achievements Housing Arrangements Arrest Record

Marital Status

Areas of Personal Information

Notification in Case of Emergency

Physical Handicaps

Memberships in Organizations