1. CONTENTS
Recruitment
HR Challenges In Recruitment
Meaning Of Recruitment
Purpose & Importance Of Recruitment
Recruitment Process
Sources Of Recruitment
Internal Sources Of Recruitment
Internal Sources Of Recruitment
External Sources Of Recruitment
Factors Affecting Recruitment
Internal Factors Affecting Recruitment
External Factors Affecting Recruitment
Recruitment Policy Of a Company
Recent Trends in Recruitment
E-Recruitment
Advantages & Disadvantages Of E-Recruitment
Difference Between Recruitment And Selection
Types Of Job Seekers
Recruitment Management System
The ROI On Recruitment
Outsourcing Recruitment
Advantage Of Outsourcing Recruitment
Changing Role of Recruitment Intermediaries
Outsourcing Process
How To Select A Recruitment Consultant
Forms Of Recruitment
Equal Employment Opportunity

2. Recruitment
Recruitment is an important part of an organization’s human resource planning and their
competitive strength. Competent human resources at the right positions in the
organisation are a vital resource and can be a core competency or a strategic advantage
for it. The objective of the recruitment process is to obtain the number and quality of
employees that can be selected in order to help the organisation to achieve its goals and
objectives. With the same objective, recruitment helps to create a pool of prospective
employees for the organisation so that the management can select the right candidate for
the right job from this pool.
Recruitment acts as a link between the employers and the job seekers and ensures the
placement of right candidate at the right place at the right time. Using and following the
right recruitment processes can facilitate the selection of the best candidates for the
organisation.
In this is competitive global world and increasing flexibility in the labour market,
recruitment is becoming more and more important in every business. Therefore,
recruitment serves as the first step in fulfilling the needs of organisations for a
competitive, motivated and flexible human resource that can help achieve its objectives.

3. HR Challenges In Recruitment
Recruitment is a function that requires business perspective, expertise, ability to find and
match the best potential candidate for the organisation, diplomacy, marketing skills (as to
sell the position to the candidate) and wisdom to align the recruitment processes for the
benefit of the organisation. The HR professionals – handling the recruitment function of
the organisation- are constantly facing new challenges. The biggest challenge for such
professionals is to source or recruit the best people or potential candidate for the
organisation.
In the last few years, the job market has undergone some fundamental changes in terms
of technologies, sources of recruitment, competition in the market etc. In an already
saturated job market, where the practices
like poaching and raiding are gaining momentum, HR professionals are constantly facing
new challenges in one of their most important function- recruitment. They have to face
and conquer various challenges to find the best candidates for their organisations.
The major challenges faced by the HR in recruitment are:
Adaptability to globalization – The HR professionals are expected and required to
keep in tune with the changing times, i.e. the changes taking place across the
globe. HR should maintain the timeliness of the process
Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organisation is achieving results, HR department or professionals are not thanked
for recruiting the right employees and performers.
Process analysis – The immediacy and speed of the recruitment process are the
main concerns of the HR in recruitment. The process should be flexible, adaptive
and responsive to the immediate requirements. The recruitment process should
also be cost effective.

4. Strategic prioritization – The emerging new systems are both an opportunity as
well as a challenge for the HR professionals. Therefore, reviewing staffing needs
and prioritizing the tasks to meet the changes in the market has become a
challenge for the recruitment professionals.
Meaning Of Recruitment
According to Edwin B. Flippo, “Recruitment is the process of searching the candidates
for employment and stimulating them to apply for jobs in the organisation”. 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.
Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organisation so that the management can select the
right candidate for the right job from this pool. The main objective of the recruitment
process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of
qualified applicants for the future human resources needs even though specific vacancies
do not exist. Usually, the recruitment process starts when a manger initiates an employee
requisition for a specific vacancy or an anticipated vacancy.

5. RECRUITMENT NEEDS ARE OF THREE TYPES
PLANNED
i.e. the needs arising from changes in organization and retirement policy.
ANTICIPATED
Anticipated needs are those movements in personnel, which an organization can predict
by studying trends in internal and external environment.
UNEXPECTED
Resignation, deaths, accidents, illness give rise to unexpected needs.
Purpose & Importance Of Recruitment
Attract and encourage more and more candidates to apply in the organisation.
Create a talent pool of candidates to enable the selection of best candidates for the
organisation.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.

6. Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
Meet the organizations 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
Recruitment Process
The recruitment and selection is the major function of the human resource department
and recruitment process is the first step towards creating the competitive strength and the
strategic advantage for the organisations. Recruitment process involves a systematic
procedure from sourcing the candidates to arranging and conducting the interviews and
requires many resources and time. A general recruitment process is as follows:
Identifying the vacancy:
The recruitment process begins with the human resource department receiving
requisitions for recruitment from any department of the company. These contain:
• Posts to be filled
• Number of persons
• Duties to be performed
• Qualifications required

7. Preparing the job description and person specification.
Locating and developing the sources of required number and type of employees
(Advertising etc).
Short-listing and identifying the prospective employee with required
characteristics.
Arranging the interviews with the selected candidates.
Conducting the interview and decision making
1. Identify vacancy
2. Prepare job description and person specification
3. Advertising the vacancy
4. Managing the response
5. Short-listing

8. 6. Arrange interviews
7. Conducting interview and decision making
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.
Sources Of Recruitment
Every organisation has the option of choosing the candidates for its recruitment processes
from two kinds of sources: internal and external sources. The sources within the
organisation itself (like transfer of employees from one department to other, promotions)
to fill a position are known as the internal sources of recruitment. Recruitment candidates
from all the other sources (like outsourcing agencies etc.) are known as the external
sources of recruitment.
SOURCES OF RECRUITMENT

9. Internal Sources Of Recruitment
1. TRANSFERS
The employees are transferred from one department to another according to their
efficiency and experience.
2. PROMOTIONS
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their
performance.
4. Retired and Retrenched employees may also be recruited once again in case of
shortage of qualified personnel or increase in load of work. Recruitment such people
save time and costs of the organisations as the people are already aware of the
organisational culture and the policies and procedures.
5. The dependents and relatives of Deceased employees and Disabled employees are
also done by many companies so that the members of the family do not become
dependent on the mercy of others.

10. External Sources Of Recruitment
1. PRESS ADVERTISEMENTS
Advertisements of the vacancy in newspapers and journals are a widely used source of
recruitment. The main advantage of this method is that it has a wide reach.
2. EDUCATIONAL INSTITUTES
Various management institutes, engineering colleges, medical Colleges etc. are a good
source of recruiting well qualified executives, engineers, medical staff etc. They provide
facilities for campus interviews and placements. This source is known as Campus
Recruitment.
3. PLACEMENT AGENCIES
Several private consultancy firms perform recruitment functions on behalf of client
companies by charging a fee. These
agencies are particularly suitable for recruitment of executives and specialists. It is also
known as RPO (Recruitment Process Outsourcing)
4. EMPLOYMENT EXCHANGES
Government establishes public employment exchanges throughout the country. These
exchanges provide job information to job seekers and help employers in identifying
suitable candidates.
5. LABOUR CONTRACTORS
Manual workers can be recruited through contractors who maintain close contacts with
the sources of such workers. This source is used to recruit labour for construction jobs.

11. 6. UNSOLICITED APPLICANTS
Many job seekers visit the office of well-known companies on their own. Such callers
are considered nuisance to the daily work routine of the enterprise. But can help in
creating the talent pool or the database of the probable candidates for the organisation.
7. EMPLOYEE REFERRALS / RECOMMENDATIONS
Many organisations have structured system where the current employees of the
organisation can refer their friends and relatives for some position in their organisation.
Also, the office bearers of trade unions are often aware of the suitability of candidates.
Management can inquire these leaders for suitable jobs. In some organizations these are
formal agreements to give priority in recruitment to the candidates recommended by the
trade union.
8. RECRUITMENT AT FACTORY GATE
Unskilled workers may be recruited at the factory gate these may be employed whenever
a permanent worker is absent. More efficient among these may be recruited to fill
permanent vacancies.
Factors Affecting Recruitment
The recruitment function of the organisations is affected and governed by a mix of
various internal and external forces. The internal forces or factors are the factors that can
be controlled by the organisation. And the external factors are those factors which cannot
be controlled by the organisation. The internal and external forces affecting recruitment
function of an organisation are:

12. FACTORS AFFECTING RECRUITMENT
Internal Factors Affecting Recruitment
The internal forces i.e. the factors which can be controlled by the organisation are:
1. RECRUITMENT POLICY
The recruitment policy of an organisation specifies the objectives of recruitment and
provides a framework for implementation of recruitment programme. It may involve
organizational system to be developed for implementing recruitment programmes and
procedures by filling up vacancies with best qualified people.

13. FACTORS AFFECTING RECRUITMENT POLICY
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies on reservations.
• Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications.
2. HUMAN RESOURCE PLANNING
Effective human resource planning helps in determining the gaps present in the
existing manpower of the organization. It also helps in determining the number of
employees to be recruited and what qualification they must possess.
3. SIZE OF THE FIRM
The size of the firm is an important factor in recruitment process. If the
organization is planning to increase its operations and expand its business, it will
think of hiring more personnel, which will handle its operations.
4. COST
Recruitment incur cost to the employer, therefore, organizations try to employ that
source of recruitment which will bear a lower cost of recruitment to the
organization for each candidate.
5. GROWTH AND EXPANSION
Organization will employ or think of employing more personnel if it is expanding
it’s operations.

14. External Factors Affecting Recruitment
The external forces are the forces which cannot be controlled by the organisation. The
major external forces are:
1. SUPPLY AND DEMAND
The availability of manpower both within and outside the organization is an important
determinant in the recruitment process. If the company has a demand for more
professionals and there is limited supply in the market for the professionals demanded by
the company, then the company will have to depend upon internal sources by providing
them special training and development programs.
2. LABOUR MARKET
Employment conditions in the community where the organization is located will
influence the recruiting efforts of the organization. If there is surplus of manpower at the
time of recruitment, even informal attempts at the time of recruiting like notice boards
display of the requisition or announcement in the meeting etc will attract more than
enough applicants.
3. IMAGE / GOODWILL
Image of the employer can work as a potential constraint for recruitment. An
organization with positive image and goodwill as an employer finds it easier to
attract and retain employees than an organization with negative image. Image of a
company is based on what organization does and affected by industry. For
example finance was taken up by fresher MBA’s when many finance companies
were coming up.
4. POLITICAL-SOCIAL- LEGAL ENVIRONMENT
Various government regulations prohibiting discrimination in hiring and
employment have direct impact on recruitment practices. For example,

15. Government of India has introduced legislation for reservation in employment for
scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions
play important role in recruitment. This restricts management freedom to select
those individuals who it believes would be the best performers. If the candidate
can’t meet criteria stipulated by the union but union regulations can restrict
recruitment sources.
5. UNEMPLOYMENT RATE
One of the factors that influence the availability of applicants is the growth of the
economy (whether economy is growing or not and its rate). When the company is
not creating new jobs, there is often oversupply of qualified labour which in turn
leads to unemployment.
6. COMPETITORS
The recruitment policies of the competitors also effect the recruitment function of
the organisations. To face the competition, many a times the organisations have to
change their recruitment policies according to the policies being followed by the
competitors.
Recruitment Policy Of a Company
In today’s rapidly changing business environment, a well defined recruitment policy is
necessary for organizations to respond to its human resource requirements in time.
Therefore, it is important to have a clear and concise recruitment policy in place, which
can be executed effectively to recruit the best talent pool for the selection of the right
candidate at the right place quickly. Creating a suitable recruitment policy is the first step
in the efficient hiring process. A clear and concise recruitment policy helps ensure a
sound recruitment process.

16. It specifies the objectives of recruitment and provides a framework for implementation of
recruitment programme. It may involve organizational system to be developed for
implementing recruitment programmes and procedures by filling up vacancies with best
qualified people.
COMPONENTS OF THE RECRUITMENT POLICY
The general recruitment policies and terms of the organisation
Recruitment services of consultants
Recruitment of temporary employees
Unique recruitment situations
The selection process
The job descriptions
The terms and conditions of the employment
A recruitment policy of an organisation should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with dignity and
respect.
Unbiased policy.
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weightage during selection given to factors that suit organization needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment
relationship.

17. Integrates employee needs with the organisational needs.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
Recent Trends in Recruitment
The following trends are being seen in recruitment:
OUTSOURCING
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 organisation by the initial screening of the candidates according to the needs of
the organisation and creating a suitable pool of talent for the final selection by the
organisation. Outsourcing firms develop their human resource pool by employing people
for them and make available personnel to various companies as per their needs. In turn,
the outsourcing firms or the intermediaries charge the organisations for their services.
Advantages of outsourcing are:
1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage
3. turning the management's focus to strategic level processes of HRM

18. 4. Company is free from salary negotiations, weeding the unsuitable
resumes/candidates.
5. Company can save a lot of its resources and time
POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by
the organisations today. Poaching means employing a competent and experienced
person already working with another reputed company in the same or different
industry; the organisation 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 candidate. But it is seen as
an unethical practice and not openly talked about. Indian software and the retail
sector are the sectors facing the most severe brunt of poaching today. It has
become a challenge for human resource managers to face and tackle poaching, as
it weakens the competitive strength of the firm.
E-RECRUITMENT
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.
Advantages of recruitment are:
o Low cost.
o No intermediaries
o Reduction in time for recruitment.
o Recruitment of right type of people.
o Efficiency of recruitment process.

19. E-Recruitment
The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as
“Online recruitment”, it is the use of technology or the web based tools to assist the
recruitment process. The tool can be either a job website like naukri.com, the organisation’s
corporate web site or its own intranet. Many big and small organizations are using Internet as a
source of recruitment. They advertise job vacancies through worldwide web. The job seekers
send their applications or curriculum vitae (CV) through an 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.
The internet penetration in India is increasing and has tremendous potential. According to a
study by NASSCOM – “Jobs is among the top reasons why new users will come on to the
internet, besides e-mail.” There are more than 18 million resume’s floating online across the
world.
The two kinds of e- recruitment that an organisation can use is –
Job portals – i.e. posting the position with the job description and the job specification on the
job portal and also searching for the suitable resumes posted on the site corresponding to the
opening in the organisation.
Creating a complete online recruitment/application section in the companies own website. -
Companies have added an application system to its website, where the ‘passive’ job seekers
can submit their resumes into the database of the organisation for consideration in future, as
and when the roles become available.
Resume Scanners: Resume scanner is one major benefit provided by the job portals to the
organisations. It enables the employees to screen and filter the resumes through pre-defined
criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job.

20. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the
just-in-time hiring by the organisations. Also, the jobs can be posted on the site almost
immediately and is also cheaper than advertising in the employment newspapers. Sometimes
companies can get valuable references through the “passers-by” applicants. Online recruitment
helps the organisations to automate the recruitment process, save their time and costs on
recruitments.
Online recruitment techniques
Giving a detailed job description and job specifications in the job postings to attract
candidates with the right skill sets and qualifications at the first stage.
E-recruitment should be incorporated into the overall recruitment strategy of the
organisation.
A well defined and structured applicant tracking system should be integrated and the
system should have a back-end support.
Along with the back-office support a comprehensive website to receive and process job
applications (through direct or online advertising) should be developed.
Advantages & Disadvantages Of E-Recruitment
There are many benefits – both to the employers and the job seekers but the e-recruitment
is not free from a few shortcomings. Some of the advantages and the disadvantages of e-
recruitment are as follows:
Advantages of E-Recruitment are:
Lower costs to the organisation. Also, posting jobs online is cheaper than advertising in
the newspapers.

21. No intermediaries.
Reduction in the time for recruitment (over 65 percent of the hiring time).
Facilitates the recruitment of right type of people with the required skills.
Improved efficiency of recruitment process.
Gives a 24*7 access to an online collection of resumes.
Online recruitment helps the organisations to weed out the unqualified candidates in an
automated way.
Recruitment websites also provide valuable data and information regarding the
compensation offered by the competitors etc. which helps the HR managers to take
various HR decisions like promotions, salary trends in industry etc
Disadvantages of E-Recruitment
Apart from the various benefits, e-recruitment has its own share of shortcomings and
disadvantages. Some of them are:
Screening and checking the skill mapping and authenticity of million of resumes is
a problem and time consuming exercise for organisations.
There is low Internet penetration and no access and lack of awareness of internet
in many locations across India.
Organisations cannot be dependant solely and totally on the online recruitment
methods.
In India, the employers and the employees still prefer a face-to-face interaction
rather than sending e-mails.

22. Difference Between Recruitment And Selection
Both recruitment and selection are the two phases of the employment process. The differences
between the two are:
1. Recruitment is the process of searching the candidates for employment and stimulating them
to apply for jobs in the organisation 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 organisation, by attracting more and more employees to
apply in the organisation WHEREAS the basic purpose of selection process is to choose the right
candidate to fill the various positions in the organisation.
3. Recruitment is a positive process i.e. encouraging more and more employees to apply
WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.
4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection
is concerned with selecting the most suitable candidate through various interviews and tests.
5. There is no contract of recruitment established in recruitment WHEREAS selection results in a
contract of service between the employer and the selected employee.

23. Types Of Job Seekers
Types Of Job Seekers
1. Quid Pro Que
These are the people who say that “ I can do this for you, what can you give me” These people
value high responsibilities, higher risks, and expect higher rewards, personal development and
company profiles doesn’t matter to them.
2. I will be with you
These people like to be with big brands. Importance is given to brands. They are not bothered
about work ethic, culture mission etc.
3. I will do you what you want
These people are concerned about how meaningful the job is and they define meaning
parameters criteria known by previous job.
4. Where do you want me to come
These people observe things like where is your office, what atmosphere do you offer. Career
prospects and exciting projects don’t entice them as much. It is the responsibility of the recruiter
to decide what the employee might face in given job and thus take decision. A good decision will
help cut down employee retention costs and future recruitment costs.
Recruitment Management System
Recruitment management system is the comprehensive tool to manage the entire recruitment
processes of an organisation. It is one of the technological tools facilitated by the information
management systems to the HR of organisations. Just like performance management, payroll and

24. other systems, Recruitment management system helps to contour the recruitment processes and
effectively managing the ROI on recruitment.
The features, functions and major benefits of the recruitment management system are explained
below:
Structure and systematically organize the entire recruitment processes.
Recruitment management system facilitates faster, unbiased, accurate and reliable
processing of applications from various applications.
Helps to reduce the time-per-hire and cost-per-hire.
Recruitment management system helps to incorporate and integrate the various
links like the application system on the official website of the company, the unsolicited
applications, outsourcing recruitment, the final decision making to the main recruitment
process.
Recruitment management system maintains an automated active database of the
applicants facilitating the talent management and increasing the efficiency of the
recruitment processes.
Recruitment management system provides and a flexible, automated and interactive
interface between the online application system, the recruitment department of the
company and the job seeker.
Offers tolls and support to enhance productivity, solutions and optimizing the recruitment
processes to ensure improved ROI.
Recruitment management system helps to communicate and create healthy relationships
with the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information system tool which
helps to sane the time and costs of the recruiters and improving the recruitment processes.

25. The ROI On Recruitment
Before making any investment, every organisation would want to evaluate the investment by
answering the following questions in quantifiable terms:
What are the costs and the corresponding and related risks on the investment?
What are the expected returns of the investment?
What is the expected pay-back period of the investment?
An organisation makes a tremendous amount of investment in its recruitment processes.
A lot of resources like time and money are spent on recruitment processes of an organisation.
But assessing or quantifying the returns on the recruitment process, or, calculating the return on
investment (ROI) on recruitment is a complicated task for an organisation. Indeed, it is difficult
to judge the success of their recruitment processes. Instead, recruitment is one activity that
continues in an organisation without anyone ever realizing its worth or measuring its impact on
the organisation’s business.
According to a survey, 38 % of organisations do not prepare or produce any kind of documents
or reports on their recruitment processes, and there is no accountability of the HR department for
the costs incurred and the opportunities missed.
With the increasing strategic focus on the human resources, more and more organisations are
adopting one or the other way for calculating the ROI on its recruitments. Many organisations
are examining their HR functions and processes and are trying to quantify their results and
returns.
A recruitment professional or manager can calculate and maximize the return on investments on
its organisation’s recruitment by
Clear definition of the results to be achieved from recruitment.
Developing methods and ways measuring the results like the time – to – hire, cost-Per-
Hire and effectiveness of the recruitment source etc.
Estimating the costs associated with the recruitment project

26. Estimating the tangible and intangible benefits to the organization including the payback
period of the recruitments.
Providing and ensuring proper training and development of the recruitment professionals.
Assessing the ROI on recruitments can assist an organisation to strengthen its HR processes,
improving its recruitment function and to build a strategic human resource advantage for the
organisation.
Outsourcing Recruitment
Outsourcing the human resource (HR) processes is the latest practice being followed by middle
and large sized organizations. It is being witnessed across all the industries. In India, the HR
processes are being outsourced from nearly a decade now. Outsourcing industry is growing at a
high rate.Human Resource Outsourcing refers to the process in which an organisation uses the
expert services of a third party (generally professional consultants) to take care of its HR
functions while HR management can focus on the strategic dimension of their function. The
functions that are typically outsourced are the functions that need expertise, relevant experience,
knowledge and best methods and practices. This has given rise to outsourcing the various HR
functions of an organisation. HR Consultancies such as Ma Foi and Planman Consulting provide
such services through expert professional consultants. Human resources business process
outsourcing (HR BPO) is a major component of the worldwide BPO market. Performance
management outsourcing involves all the performance monitoring, measurement, management
being outsourced from a third party or an external organisation.
Many organizations have started outsourcing its recruitment process i.e. transferring all or some
part of its recruitment process to an external consultant providing the recruitment services. It is
commonly known as RPO i.e. recruitment process outsourcing. More and more medium and
large sized organizations are outsourcing their recruitment process right from the entry level jobs
to the C-level jobs.
The present value of the recruitment process outsourcing industry (RPO) in India is estimated to
be $2.5 billion and it is expected to grow at the annual rate of 30-40 per cent for the next couple

27. of years. According to a recent survey, only 8-10 per cent of the Indian companies are complete
recruitment processes. However, the number of companies outsourcing their recruitment
processes is increasing at a very fast rate and so is the percentage of their total recruitment
processes being outsourced.
Outsourcing organizations strive for providing cost saving benefits to their clients. One of the
major advantages to organizations, who outsource their recruitment process, is that it helps to
save up to as much as 40 per cent of their recruitment costs. With the experience, expertise and
the economies of scale of the third party, organizations are able to improve the quality of the
recruits and the speed of the whole process. Also, outsourcing enables the human resource
professionals of organizations to focus on the core and other HR and strategic issues.
Outsourcing also gives a structured approach to the whole process of recruitment, with the
ultimate power of decision making of recruiting with the organisation itself. The portion of the
recruitment cycle that is outsourced range from preparing job descriptions to arranging
interviews, the activities that consume almost 70 per cent of the time of the whole recruitment
process.
Outsourcing the recruitment processes for a sector like BPO, which faces an attrition of almost
50-60 per cent, can help the companies in BPO sector to save costs tremendously and focus on
other issues like retention. The job seekers are also availing the services of the third parties
(consultants) for accessing the latest job opportunities.
In India, the trend of outsourcing recruitment is also catching up fast. For example: Vodafone
outsources its recruitment activities to Alexander Mann Solutions (RPO service provider). Wipro
has outsourced its recruitment process to MeritTrac. Yes bank is also known to outsource 50 per
cent of its recruitment processes.

28. Advantage Of Outsourcing Recruitment
Traditionally, recruitment is seen as the cost incurring process in an organization. HR
outsourcing helps the HR professionals of the organisations to concentrate on the strategic
functions and processes of human resource management rather than wasting their efforts, time
and money on the routine work.
Outsourcing the recruitment process helps to cut the recruitment costs to 20 % and also provide
economies of scale to the large sized organizations.
The major advantages of outsourcing performance management are:
Outsourcing is beneficial for both the corporate organisations that use the outsourcing services as
well as the consultancies that provide the service to the corporates. Apart from increasing their
revenues, outsourcing provides business opportunities to the service providers, enhancing the
skill set of the service providers and exposure to the different corporate experiences thereby
increasing their expertise.
The advantages accruing to the corporates are:

29. turning the management's focus to strategic level processes of HRM
accessibility to the expertise of the service providers
freedom from red tape and adhering to strict rules and regulations
optimal resource utilisation
structured and fair performance management.
a satisfied and, hence, highly productive employees
value creation, operational flexibility and competitive advantage
Therefore outsourcing helps both the organisations and the consultancies to grow and perform
better.
Changing Role of Recruitment Intermediaries
Recruitment consultancies, agencies or intermediaries are witnessing a boom in the demand of
their services, both by the employers and the job seekers. With an already saturated job market,
the recruitment intermediaries have gained a vital position acting as a link between the job
seekers and the employers.But at the same time, one of the major threats faced by this industry is
the growing popularity of e-recruitment. With the changing demand, technologies and the
penetration and increasing use of internet, the recruitment consultancies or the intermediaries are
facing tough competition. To retain and maintain their position in the recruitment market, the
recruitment intermediaries or consultants (as they are commonly known) are witnessing and
incorporating various changes in terms of their role, functions and the services.
According to a survey amongst top employers, most of them agree with the growing influence of
technology and the Internet on the recruitment processes. 70 per cent of employers reported the
use of application portal on their company’s official website. Apart from that, the emerging
popularity of the job portals is also growing.
But the fact that the intermediaries or the consultants are able to provide their expert services,
economies of scale, up to 40 percent savings in the recruitment costs, knowledge of the market,
the candidates, understanding of the requirements, and most importantly, the assess to the
suitable and talented candidates and the structured recruitment processes. The recruitment

30. intermediaries save the organisations from the tedious of weeding out unsuitable resumes, co-
coordinating interviews, posting vacancies etc. give them an edge over the other sources of
recruitment.
To retain their position as the service providers in the recruitment market, the recruitment
intermediaries are providing vale added services to the organisations. They are incorporating the
use of internet and job portals, making their services more efficient.
Despite of the growing use of the internet, the recruitment intermediaries are predicted to
continue dominating the recruitment market in the anticipated future.
Outsourcing Process
Outsourcing Process

31. How To Select A Recruitment Consultant
If an organisation decides to outsource its recruitment processes or activities, it is very important
to find and select a suitable recruitment consultant or consultancies, which can deliver results
according to the needs of the organisation. Today, there are thousands of consulting firms
(consultancies) as well as freelance consultants working independently. An organisation looks
for various considerations and qualities before selecting the suitable recruitment consultant.
The reputation of the consulting firm in the job market (based on expertise and experience).
Who are the consultant’s or firm’s past and present clients?
Consultant’s expertise and experience (from how long has he/firm been in the business)
Does the recruitment consultant have the requisite resources to complete the targets on
time?
Get the idea of the effectiveness and the services of the recruitment consultant from its
current and past clients.
Qualities of an independent recruitment consultant:
Some of the qualities or characteristics looked in recruitment consultants are:
Marketing skills
Flexibility and adaptability
Wisdom
Exuberance
Ability to prioritise
Ambition
Resourcefulness
Diplomacy/ delicacy

32. Recruitment Process in Top Organisations in
Indian Industry
Recruitment Strategies
Recruitment is of the most crucial roles of the human resource professionals. The level of
performance of and organisation depends on the effectiveness of its recruitment function.
Organisations have developed and follow recruitment strategies to hire the best talent for their
organisation and to utilize their resources optimally. A successful recruitment strategy should be
well planned and practical to attract more and good talent to apply in the organisation.
For formulating an effective and successful recruitment strategy, the strategy should cover the
following elements:
1. Identifying and prioritizing jobs
Requirements keep arising at various levels in every organisation; it is almost a never-
ending process. It is impossible to fill all the positions immediately. Therefore, there is a
need to identify the positions requiring immediate attention and action. To maintain the
quality of the recruitment activities, it is useful to prioritize the vacancies whether to
focus on all vacancies equally or focusing on key jobs first.
2. Candidates to target
The recruitment process can be effective only if the organisation completely understands
the requirements of the type of candidates that are required and will be beneficial for the
organisation. This covers the following parameters as well:
o Performance level required: Different strategies are required for
focusing on hiring high performers and average performers.
o Experience level required: the strategy should be clear as to what is the
experience level required by the organisation. The candidate’s experience can
range from being a fresher to experienced senior professionals.

33. o Category of the candidate: the strategy should clearly define the target candidate.
He/she can be from the same industry, different industry, unemployed, top
performers of the industry etc.
3. Sources of recruitment
The strategy should define various sources (external and internal) of recruitment. Which
are the sources to be used and focused for the recruitment purposes for various positions.
Employee referral is one of the most effective sources of recruitment.
4. Trained recruiters
The recruitment professionals conducting the interviews and the other recruitment
activities should be well-trained and experienced to conduct the activities. They should
also be aware of the major parameters and skills (e.g.: behavioural, technical etc.) to
focus while interviewing and selecting a candidate.
5. How to evaluate the candidates
The various parameters and the ways to judge them i.e. the entire recruitment process
should be planned in advance. Like the rounds of technical interviews, HR interviews,
written tests, psychometric tests etc.
HR Challenges In Recruitment
Recruitment is a function that requires business perspective, expertise, ability to find and match
the best potential candidate for the organisation, diplomacy, marketing skills (as to sell the
position to the candidate) and wisdom to align the recruitment processes for the benefit of the
organisation. The HR professionals – handling the recruitment function of the organisation- are
constantly facing new challenges. The biggest challenge for such professionals is to source or
recruit the best people or potential candidate for the organisation.
In the last few years, the job market has undergone some fundamental changes in terms of
technologies, sources of recruitment, competition in the market etc. In an already saturated job
market, where the practices like poaching and raiding are gaining momentum, HR professionals
are constantly facing new challenges in one of their most important function- recruitment. They
have to face and conquer various challenges to find the best candidates for their organisations.

34. The major challenges faced by the HR in recruitment are:
Adaptability to globalization – The HR professionals are expected and required to keep in tune
with the changing times, i.e. the changes taking place across the globe. HR should maintain the
timeliness of the process
Lack of motivation – Recruitment is considered to be a thankless job. Even if the
organisation is achieving results, HR department or professionals are not thanked for
recruiting the right employees and performers.
Process analysis – The immediacy and speed of the recruitment process are the main
concerns of the HR in recruitment. The process should be flexible, adaptive and
responsive to the immediate requirements. The recruitment process should also be cost
effective.
Strategic prioritization – The emerging new systems are both an opportunity as well as a
challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing
the tasks to meet the changes in the market has become a challenge for the recruitment
professionals.
Recruiting Expatriates
Expatriate is a person who leaves his country to work and live in a foreign country. Generally,
expatriates are the nationals from the other countries than the host and the MNC’s parent
country, i.e. expatriates are the third country nationals.
The unavailability of the required skills and talents takes the organisation to source talent from
other countries. The procedures and processes of recruiting and selecting the human resources
are never uniform even within a single organisation. The procedures vary according to the post,
the skill set required, the nature of work etc. More of it is seen in the case of recruitment of
expatriates. The recruitment and selection procedures and considerations are drastically different
for expatriates than that of the domestic employees. Recruitment of expatriates involves greater
time, monetary resources and other indirect costs. Improper recruitment and selection can cause

35. the expatriates to return hastily or a decline in their performance.
A mismatch between job (its requirements) and people can reduce the effectiveness of other
human resource activities and can affect the performance of the employees as well as the
organisation.
Recruiting expatriates require special considerations and skills to select the best person for the
job. Except for a few expatriate selection policies, the expatriate selection criterion is generally
organisation and nation specific.
The recruiters for recruiting the expatriates should be carefully selected and trained. The
recruitment strategies for expatriates should be aligned with requirements of the job. The
interviews of expatriates are designed in a manner to judge their:
Adaptability to the new culture
Intercultural interaction
Flexibility
Professional expertise
Past international work experience
Tolerance and open-mindedness
Family situation
Language ability
Attitude and motivation
Empathy towards local culture
A few researches in this field also suggest that women are morel likely to be successful in certain
positions as expatriates as they are more sensitive towards new culture and people. Recruitment
of expatriates should be followed by cultural and sensitivity training, and language training.
Head Hunting
Headhunting refers to the approach of finding and attracting the best experienced person with the
required skill set. Headhunting involves convincing the person to join your organization.

36. Headhunting Process
Forms Of Recruitment
Expatriate is a person who leaves his country to work and live in a foreign country. Generally,
expatriates are the nationals from the other countries than the host and the MNC’s parent
country, i.e. expatriates are the third country nationals.
The unavailability of the required skills and talents takes the organisation to source talent from
other countries. The procedures and processes of recruiting and selecting the human resources
are never uniform even within a single organisation. The procedures vary according to the post,

37. the skill set required, the nature of work etc. More of it is seen in the case of recruitment of
expatriates. The recruitment and selection procedures and considerations are drastically different
for expatriates than that
of the domestic employees. Recruitment of expatriates involves greater time, monetary resources
and other indirect costs. Improper recruitment and selection can cause the expatriates to return
hastily or a decline in their performance.
A mismatch between job (its requirements) and people can reduce the effectiveness of other
human resource activities and can affect the performance of the employees as well as the
organisation.
Recruiting expatriates require special considerations and skills to select the best person for the
job. Except for a few expatriate selection policies, the expatriate selection criterion is generally
organisation and nation specific.
The recruiters for recruiting the expatriates should be carefully selected and trained. The
recruitment strategies for expatriates should be aligned with requirements of the job. The
interviews of expatriates are designed in a manner to judge their:
Adaptability to the new culture
Intercultural interaction
Flexibility
Professional expertise
Past international work experience
Tolerance and open-mindedness
Family situation
Language ability
Attitude and motivation
Empathy towards local culture
A few researches in this field also suggest that women are morel likely to be successful in certain
positions as expatriates as they are more sensitive towards new culture and people. Recruitment
of expatriates should be followed by cultural and sensitivity training, and language training.

38. Equal Employment Opportunity
Equal opportunity employment refers to the approach of the employers to ensure the practice of
being fair and impartial in the employment process. *The term "Equal Opportunity
Employment" was first given by President Lyndon B. Johnson when he signed Executive Order
11246 which was created to prohibit federal contractors from discriminating against employees
on the basis of race, sex, creed, religion, color, or national origin*. The scope of the order also
covered the discrimination on the basis of the minority status.
Discrimination in employment
Discrimination refers to the any kind of prejudice, biasness or favoritism on the basis of
disability
race
age
sex
sexuality
pregnancy
Marital status
in employment. No person should be treated less favourably than any other on the basis of the
specified issues above. Many countries (like SA) have already implemented Equal Opportunity
Act, making it against the law to treat anybody unfairly.
Diversity in workforce
With the globalization and the increasing size of the organisations, the diversity in the workforce
is increasing i.e. people from diverse backgrounds, educational background, age groups, race,
gender, abilities etc come together to work for one organisation and common objectives.
Therefore, it is the responsibility of the employer to create an equality-based and discrimination-
free working environment and practices.
Equal opportunity means treating people equally and fairly irrespective of their race, religion,
sex, age, disability etc. Giving women an equal treatment and access to opportunities at the

39. workplace. Any employee should be ill-treated or harassed by the employer or other employees.
Equal Employment Opportunity principles help to realize and respect the actual worth of the
individual on the basis of his knowledge, skills, abilities and merit. And the policy should cover
all the employees of an organisation whether permanent or temporary, contractual etc.
Equal employment opportunity is necessary to ensure:
To give fair access to the people of all development opportunities
To create a fair organisation, industry and society.
To encourage and give disadvantaged or disabled people a fair chance to grow with the
society
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