Recruitment

UNIT 4 RECRUITMENT
Structure
4.0 Objectives
4.1 Introduction
4.2 Recruitment –Meaning and Importance
4.3 Sources of Recruitment
4.3.1 Internal Sources
4.3.2 External Sources
4.4 Methods of Recruitment
4.4.1 Internal Methods
4.4.2 External Methods
4. 5 Recruitment Process
4.6 Recruitment v/s Selection
4.7 New Trends in Recruitment
4.7.1 Out Sourcing
4.7.2 Poaching/ Raiding
4.7.3 E-Recruitment
4.8 Let Us Sum Up
4.9 Key Words
4.10 Answers to Check Your Progress
4.11 Terminal Questions
4.12 Further Readings

4.0 OBJECTIVES
After studying this unit, you should be able to:
● describe the purpose and importance of recruitment
● identify the factors affecting recruitment
● discuss the recruitment policies, methods and process
● explain the recent trends in recruitment

4.1 INTRODUCTION
The human resources are the most important assets of an Organization. The success
or failure of an Organization is largely dependent on the caliber of the people working
therein. Without positive and creative contributions from people, Organizations cannot
progress and prosper. In order to achieve the goals of an Organization, it is necessary
to recruit people with requisite skills, qualifications and experience. While doing so,
they have to keep the present as well as the future requirements of the Organization
in mind. Recruitment is distinct from Employment and Selection. Once the required
number and kind of human resources are determined, the management has to find the 35
Human Resources places where the required human resources will be available and also find the means
of attracting them towards the Organization before selecting suitable candidates for
jobs. In this unit you will learn about the purpose and importance of recruitment,
factors affecting recruitment, recruitment policies, methods, process, and recent
trends in recruitment.

4.2 RECRUITMENT–MEANING AND IMPORTANCE

Edwin Flippo defined”Recruitment as the process of searching for prospective
employees and stimulating them to apply for jobs in the Organization.” Recruitment
involves estimating the available vacancies and making suitable arrangements for
their selection and appointment. In order to attract people for the jobs, the
Organization must communicate the position in such a way that job seekers respond.
To be cost effective, the recruitment process should attract qualified applicants and
provide enough information for unqualified persons to self-select themselves out.
Thus, the recruitment process begins when new recruits are sought and ends when
their applications are submitted. The result is a pool of applicants from which new
employees are selected.
The general purpose of recruitment is to provide a pool of potentially qualified job
candidates. Specifically, the purposes are to:
● Determine the present and future requirements of the Organization in
conjunction with its personnel-planning and job-analysis activities.
● Increase the pool of job candidates at minimum cost.
● Help increase the success rate of the selection process by reducing the number
of visibly under qualified or overqualified job applicants.
● Help reduce the probability that job applicants, once recruited and selected, will
leave the organization only after a short period of time.
● Begin identifying and preparing potential job applicants who will be appropriate
candidates.
● Induct outsiders with a new perspective to lead the Company.
● Infuse fresh blood at all levels of the Organization.
● Develop an Organizational culture that attracts competent people to the
Company.
● Search for people whose skills fit the Company’s values.
● Devise methodologies for assessing psychological traits.
● Search for talent globally and not just within the Company.
● Design entry pay that competes on quality but not on quantum.
● Anticipate and find people for positions that do not exist yet.
● Increase Organizational and individual effectiveness in the short term and long
term.
● Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.
Management has to attract more candidates in order to increase the selection ratio so
that the most suitable candidate can be selected out of the total candidates available.
Recruitment is positive as it aims at increasing the number of applicants and selection
is somewhat negative as it selects the suitable candidates in which the unsuitable
36
candidates are automatically eliminated. Though, the function of recruitment seems to Recruitment
be easy, a number of factors make performance of recruitment a complex one.

4.3 SOURCES OF RECRUITMENT

The sources of recruitment may be broadly divided into two categories: internal
sources and external sources. Both have their own merits and demerits. Let us
examine these.

4.3.1 Internal Sources

Persons who are already working in an Organization constitute the ‘internal sources’.
Retrenched employees, retired employees, dependents of deceased employees
generally constitute the internal sources. Whenever any vacancy arises, someone
from within the Organization is upgraded, transferred, promoted or even demoted.
Merits and demerits of internal sources of recruitment

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

4.3.2 External Sources

External sources lie outside an Organization. The Organization can have the services of:
(a) Employees working in other Organizations;
(b) Job aspirants registered with employment exchanges;
(c) Students from reputed educational institutions;
(d) Candidates referred by unions, friends, relatives and existing employees;
(e) Candidates forwarded by search firms and contractors;
(f) Candidates responding to the advertisements, issued by the Organization; and
(g) Unsolicited applications/ walk-ins. 37
Human Resources Merits and demerits of external sources of recruitment

Merits Demerits

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

4.4 METHODS OF RECRUITMENT

The methods of recruitment can be broadly divided into two: internal methods and
external methods.

4.4.1 Internal Methods

The following are the most commonly used internal methods of recruiting people.
1. Promotions and Transfers: Promotion and Transfers are used to fill vacancies
from within the Organization. A transfer is a lateral movement within the same
grade, from one job to another. It may lead to changes in duties and
responsibilities, working conditions, etc., but not necessarily salary. Promotion,
on the other hand, involves movement of employee from a lower level position to
a higher level position accompanied by (usually) changes in duties,
responsibilities, status and value.
2. Job Posting: Job posting is another way of hiring people from within. In this
method, the Oorganization publicises job opening on bulletin boards, electronic
method and similar outlets. One of the important advantages of this method is
that it offers a chance to highly qualified persons working within the Company to
look for growth opportunities without looking for greener pastures outside.
3. Employee Referrals: Employee referral means using personal contacts of
employees to locate job prospects. It is a recommendation from a current
employee regarding a job applicant. The logic behind employee referral is that
“it takes one to know one”. Employees working in the Organization, in this case,
38
 are encouraged to recommend the names of known persons, working in other Recruitment
Organizations for a possible vacancy in the near future.
In fact, this has become a popular way of recruiting people in the highly competitive
sectors like IT, Retailing, etc.

4.4.2 External Methods

The following methods are used to recruit the people from outside:
1. Campus Recruitment: This is a direct method of recruiting people by visiting
academic institutions such as colleges and universities. Here the recruiters visit
reputed educational institutions with a view to pick up job aspirants having requisite
technical or professional skills. Job seekers are provided information about the jobs
and the recruiters, in advance. The Company gets a detailed profile of job seekers
through constant exchange of information with respective institutions.
2. Advertisements: - Companies give advertisements to attract prospective job
seekers. These include advertisements in newspapers; trade, professional and
technical journals; radio and television; etc. In recent times, this medium has become
just as colourful, lively and imaginative as consumer advertising.
3. Private Employment Search Firms: Search firm is a private employment
agency that maintains computerized lists of qualified applicants and supplies these to
employers willing to hire people from the list for a fee.
Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB Billimoria,
KPMG; Ferguson Associates offers specialized employment-related services to
corporate houses for a fee, especially for top and middle level executive vacancies.
4. Employment Exchanges: As a statutory requirement, Companies are also
expected to notify (wherever the Employment Exchanges Act, 1959, applies) their
vacancies through the respective Employment Exchanges, created all over India for
helping unemployed youth, displaced persons, ex-military personnel, physically
handicapped, etc.
5. Gate Hiring and Contractors: Gate hiring is the method of recruitment used by
small and medium sized Organizations generally where semi skilled workers are
required. The job seekers present themselves at the factory gate and offer their
services on a daily basis. Contractors are also used for the supply of such personnel.
6. Unsolicited Applicants / Walk-ins: Companies generally receive unsolicited
applications from job seekers at various points of time. The number of such
applications depends on economic conditions, the image of the Company and the job
seeker’s perception of the types of jobs that might be available etc. Such applications
are generally kept in a data bank and whenever a suitable vacancy arises, the
company would intimate the candidates to apply through a formal channel.
Since recruitment and selection costs are high (search process, interviewing agency
fee, etc.) firms in recent times are trying to look at alternatives to recruitment
especially when market demand for firm’s products and services is sluggish.
Moreover, once employees are placed on the payroll, it may be extremely difficult to
remove them if their performance is marginal.

39
Human Resources
Check Your Progress A
1. Define Recruitment.
..................................................................................................................
..................................................................................................................
..................................................................................................................
2. What is the purpose of recruitment?
..................................................................................................................
..................................................................................................................
..................................................................................................................
3. Mention two importance of recruitment.
..................................................................................................................
..................................................................................................................
..................................................................................................................
4. Distinguish between internal and external sources of recruitment.
..................................................................................................................
..................................................................................................................
..................................................................................................................
5. What is out sourcing?
..................................................................................................................
..................................................................................................................
..................................................................................................................

4.5 RECRUITMENT PROCESS

Recruitment process involves a systematic procedure from sourcing the candidates to
arranging and conducting the interviews. This process requires many resources and
time. Look at the Figure 4.1 which shows the process of recruitment. Let us learn the
steps to be involved in the process of recruitment.
1. Identify vacancy
2. job description and person specification
3. Advertising the vacancies
4. Managing the response
5. Short-listing
6. Arranging interviews
7. Conducting interview and decision making

40
 Recruitment

Figure 4.1: Recruitment process

The recruitment process is immediately followed by the selection process i.e. the final
interviews and the decision making, conveying the decision and the appointment
formalities.

4.6 RECRUITMENT VS. SELECTION

So far you have learnt the meaning, importance, sources, methods and process of
recruitment. Let us now learn about recruitment v/s selection and the new trends in
recruitment.Both recruitment and selection are the two phases of the employment
process. The differences between the two are:
1. The recruitment is the process of searching the candidates for employment and
motivating them to apply for jobs in the Organization; whereas selection involves
the series of steps by which the candidates are screened for choosing the most
suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to
enable the selection of best candidates for the Organization, by attracting more
and more employees to apply in the Organization whereas the basic purpose of
selection process is to choose the right candidate to fill the various positions in
the Organization.
3. Recruitment encourages more and more candidates to apply whereas selection
involves rejection of the unsuitable candidates.
4. Recruitment is concerned with collecting the sources of human resources
whereas selection is concerned with selecting the most suitable candidates
through various interviews and tests.
5. There is no contract of recruitment whereas selection results in a contract of
service between the employer and the selected candidate.

41
Human Resources
4.7 NEW TRENDS IN RECRUITMENT
Many Companies are moving away of conventional recruitment methods. The new
methods followed by Companies are outsourcing, poaching/raiding and e-recruitment.

4.7.1 Outsourcing
Outsourcing is a process of transferring a business function to an external service
provider. In recruitment out sourcing, a company completely transfers the selection
process or part of it to a third party. The outsourcing firms help the organisation 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 Organization.
Outsourcing firms develop their human resource pool by employing people for them.
These human resource pools will be made available to various Companies as per their
needs.

4.7.2 Poaching/Raiding
Raiding or poaching is a method of recruitment in which competing firms attract
employees from rival firms. In simple terms poaching may be described as buying
talent rather than developing. Hefty pay packages, other terms and conditions may
attract employees to join new Organizations. Poaching is a big challenge for human
resource managers. Poaching weakens the Organizations competitive strength
because of employees’ migration.

4.7.3 E-Recruitment
E-Recruitment is the latest trend in recruitment. It is also known as online
recruitment. Internet is the back bone for E-Recruitment. Companies advertise job
vacancies on different websites. Exclusive job websites like naukr.com, monster.com,
etc help both job seekers and companies to contact each other. These job sites
provide a 24x7 access to the database of the resumes to the employers facilitating
Organizations to hire people very quickly.
Every Company website usually provides ‘career’ hyper link. This link helps job
seekers to upload resume in the website. Using the uploaded resumes Companies can
build their own resume database, which can be used for existing and future
requirements. Online recruitment helps the Organizations to automate the recruitment
process, save their time and costs on recruitments.

Check Your Progress B

1. What is E-Recruitment?
..................................................................................................................
..................................................................................................................
..................................................................................................................
2. What is meant by poaching?
..................................................................................................................
..................................................................................................................
..................................................................................................................

42
 Recruitment
3. Distinguish between recruitment and selection.
..................................................................................................................
..................................................................................................................
..................................................................................................................
4. Identify the steps in recruitment process.
..................................................................................................................
..................................................................................................................
..................................................................................................................
5. Which of the following statements are True or False?
i) Recruitment is same as employment and selection.
ii) Recruitment process begins when new recruits are sought and their
applications are submitted.
iii) Job aspirants registered with employment exchanges constitute internal
sources of Recruitment.
iv) Employee referrals are the external method of recruitment.
v) Arranging interviews is one of the important steps in recruitment process.

4.8 LET US SUM UP

Recruitment is the process of searching for prospective employee and stimulating
them to apply for jobs in Organization. It involves estimation of vacancies and making
arrangements for selection and appointment. Importance of recruitment is that it aims
at increasing the number of applicants and selection is somewhat negative as it
selects the suitable candidates in which the unsuitable candidates are automatically
eliminated. An organization can recruit the people from internal sources and external
sources. Internal sources are: retired employees, dependents of deceased employees
etc. and external sources are: employment exchanges, campus interview, candidates
referred by existing employees etc. The methods of recruitment can be broadly
divided into two: internal methods and external methods. Internal methods are:
promotions and transfers, job posting and employee referrals etc. External methods
are: campus recruitment, advertisements, employment exchanges etc. The
recruitment process is influenced by the size, policy and image of the Organization.
The steps in recruitment process are: Identify vacancy, job description, advertising the
vacancies, short-listing, arranging interviews, conducting interview and decision
making. Recruitment and selection are two phases of employment process. The
difference between the two is that Recruitment is concerned with collecting the
sources of human resources whereas selection is concerned with selecting the most
suitable candidates through various interviews and tests. In order to keep pace with
the ever challenging demands form external environment many Companies are
moving away of conventional recruitment methods and adopting the new methods
which are: outsourcing, poaching/raiding and e-recruitment.

43
Human Resources
4.9 KEY WORDS
Recruitment: The process of searching the candidates for employment and
motivating them to apply for jobs in the Organization.
Selection: Screening employees to choose most suitable candidate for the job.
Outsourcing: Transferring the selection process to a third party.
Poaching: Attracting experienced employees from competing firms.
E-Recruitment: Taking the help of internet and databases for recruitment process.

4.10 ANSWERS TO CHECK YOUR PROGRESS

(B) 5) i) False ii) True iii) False iv) False v) True

4.11 TERMINAL QUESTIONS

1) What do you understand by ‘recruitment’? Explain the process of recruitment.
2) Discuss critically the various sources of recruitment for employees.
3) Critically examine in detail the external methods of recruitment.
4) What is selection? Distinguish between recruitment and selection.
5) Write a short note on the following:
i) Outsourcing
ii) Poaching
iii) E-recruitment

4.12 FURTHER READINGS

1. K Ashwathappa, Human Resource and Personnel Management, Tata McGraw-
Hill, 1997
2. John M. Ivancevich, Human Resource Management, Tata McGraw- Hill, 2004
3. Biswajeet Pattanayak, Human Resource Management, New Delhi, Prentice-
Hall of India,
4. Mamoria C.B. and Gankar S.V., A Text Book of Human Resource
Management, Himalaya Publishing House, Mumbai, 2004.

44