1. Recruitment

2. Definition
Recruitment is a 'linking function' - joining together those with jobs to fill
and those seeking jobs. It is a 'joining process' in that it tries to bring
together job seekers and employer with a view to encourage the former to
apply for a job with the latter.
The basic purpose of recruiting is to develop a group of potentially qualified
people. To this end, 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.
Recruitment involves searching for and obtaining potential job candidates in
sufficient numbers and quality so that the organization can select the most
appropriate people to fill its job needs.

3. Aims of Recruitment
The aims of recruitment are:
♠ to obtain a pool of suitable candidates for vacant posts
♠ to use and be seen to use a fair process
♠ to ensure that all recruitment activities contribute to
company goals and a desirable company image
♠ to conduct recruitment activities in an efficient and cost-
effective manner

4. Edwin D. Flippo says

5. Factors affecting recruitment
1) Size of the organization
2) Employment conditions in the community where the
organization is located
3) The effects of past recruiting efforts which show the
organization’s ability to locate and keep better
performing people
4) Working conditions and salary and benefits offered
5) Rate of growth of organization
6) Level of seasonality of operations
7) Future expansions
8) Cultural, economic and legal factors

6. Environment Affecting Recruitment
The Economic Environment
Economic conditions quietly influence the recruitment process in all organizations.
The sudden boom in the financial services sector in India, especially from 1991
onwards, has contributed to the growing demand for MBA/CA/CFA/CWA
students. The demand for engineers, especially in the manufacturing sector, has
not kept pace and most engineers had to make a beeline for finance/marketing
degrees or diploma to encash the job opportunities.
The Social Environment
Major social changes in the past two decades have caused organizations to place
increased emphasis on recruitment. Modem employees look for a satisfying
career in place of 'just a job'. If the opportunities for career growth are missing
in an organization, they do not hesitate to leave and go in search of greener
pastures outside. To ward off such threats, companies nowadays emphasize
opportunities for training and development and progression through a series of
jobs within the same organization. They also try to present a more realistic
picture of the job and the encouraging career openings to prospective
employees through innovative recruitment campaigns. If the organization is not
aware of and is insensitive to prevailing social values and norms, the recruitment
efforts could go off the track.

7. Environment Affecting Recruitment
The Technological Environment
New technologies create new jobs. The existing jobs undergo a rapid change. As a
result, applicants with unusual combination of skills and knowledge must be
found. The Liberalization Programme after 1991 brought about rapid changes in
the fields of banking, electronics, telecommunications, automobiles, software and
pharma industries, etc. Several old jobs have disappeared almost suddenly. At the
same time, there is a chronic shortage of people with requisite skills and
knowledge especially in the fields of software, telecommunication, insurance, etc.
In such a scenario companies have to step up their recruitment efforts to
compete successfully for a small number of suitable candidates.
The Political Environment
Political compulsions, constitutional provisions covering reservations for special
groups, providing employment to "sons of the soil" especially in states like
Andhra Pradesh, Tamilnadu, Arunachal Pradesh; offering jobs to displaced
persons whose lands have been acquired in order to set up projects of national
importance - also come in the way of recruiting people, based solely on
qualifications, skills and experience. Factors such as influence of unions,
recommendations of friends and relatives of management also play an important
role in influencing recruitment policies followed by a firm .

8. Environment Affecting Recruitment
The Legal Environment
The different legislative policies governing child labor, night shift work, bonded labor,
contract labor, reservation, 'sons of the soil' have brought the legal environment
to be a major item to be looked into carefully by all companies intending to
recruit people for various positions. Let us examine the issues more elaborately:
The Factories Act, 1948: The Act prohibits the employment of women (night work,
underground work, carrying heavy loads, etc.) and child labor (below 14 years of
age) in certain jobs
.
The Apprentices Act, 1961: The Act provides for a machinery to lay down syllabi
and specify period of training, mutual obligations of apprentices and employees,
etc. The responsibility for engagement of apprentice lies solely with the
employer. The apprentice, after serving a contractual term of training, can be
taken on regular rolls. The Act, as amended in 1986, provides for revised rates of
compensation during the apprenticeship period and for failure on the part of the
employer to execute the terms of the contract.

9. Environment Affecting Recruitment
The Employment Exchanges Act, 1959: The Act requires all employers to notify the
vacancies arising in their establishments to prescribed employment exchange
before they are filled. The Act covers all establishments in Public Sector and
nonagricultural establishments employing 25 or more workers in the private
sector.
The Contract Labor Act, 1970: The Act is applicable to every establishment
(contractor) employing 20 or more persons. It tries to regulate the employment
conditions of contract labor in certain establishments and also provides for the
abolition of contract labor in certain circumstances.
Bonded Labor System (Abolition) Act, 1976: The Act provides for the abolition of
bonded labor (system of forced labor to liquidate debts payable to parties who
are bent on exploiting the vulnerability of the victim) or his family members.
The Child Labor Act, 1986: The Act prohibits the employment of children below 14
years of age in certain employments. This has become a serious issue in India
recently when German firms refused to accept carpets exported from Uttar
Pradesh, objecting to the employment of child labor in the carpet industry.

10. Recruitment theories
 As per Behling and others, there are three ways in which
an individual make a decision to join an organization viz.
objective factor, subjective factor and critical contact.
Accordingly following three theories of recruitment have
been evolved:
• Objective factor theory
• Subjective factor theory
• Critical contact theory.

11.  (a) Objective Factor Theory:
As per this theory the choice of organization by a
potential employee depends on objective assessment of
certain tangible factors, such as the following:
• Pay and perks.
• Location.
• Opportunity for career growth.
• Nature of work
• Educational opportunities, etc.

12.  (b) Subjective Factor Theory:
According to this theory compatibility of individual
personality with the image of organization is a decisive
factor in choosing an organization by an individual
candidate seeking employment

13.  (c) Critical Factor Theory:
there are instances when a candidate is unable to choose
an organization, out of alternatives based on objective or
subjective factors. This is due to many reasons such as
limited contact and insufficient data, in regards to the
organization or his own inability to analyze and come to
any firm conclusion. In such cases, certain critical factors
observed by him during his interview and contact with
personnel of the organization will have profound
influence in his decision process

14. Recruitment constraints for HR manager
1) Organization’s image
2) Attractiveness quotient
3) Internal organizational policies
4) Union requirements
5) Influence of government

15. Steps of recruitment process

16. Pre-requisites of a sound Recruitment
Policy
 Conformity with its general policies
 Should be
 flexible enough to meet the changing needs of an organization.
 be designed so as to ensure employment opportunities on long
term basis to achieve organizational
 match the qualities of employees
 Highlight the meeting of established job analysis

17. Principle elements governing
Recruitment Policy
 Identification of recruitment needs
 Preferred sources of recruitment
 Cost of recruitment and selection
 Criteria of selection techniques
 Role , if any , assigned to the Union in the formulation
and implementation of Rec and selection policies

18. Sources of recruitment
Internal External
 Present , Permanent  Educational & Training
employees Institutes
 Present Temp/ Casual  Pvt employment agencies /
 Retrenched / Retired consultants
 Dependents of diseased ,  Public employment
disabled , retired and
present employees exchanges ,
 Professional Associations
 Data banks
 Trade Unions

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

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

21. 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, on the other hand, is a lateral movement within the same grade,
from one job to another.
 Job posting: It is a method of publicising job openings on bulletin boards,
electronic media and similar outlets by a company.
 Employee referrals: It is a kind of recommendation from a current
employee regarding a job applicant.

22. 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.
 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.
 Recommenders may confuse friendship with job competence. Factors such as
bias, nepotism, and eagerness to see their friends in the company may come in the
way of hiring a suitable candidate.

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

24. Common Mistakes made in campus
recruiting
 Failure to utilise a full-time professional recruiter: Often recruitment is used as
a training experience for new employees. This results in rapid turnover in the recruitment
office.
 The recruiter is not professionally trained in interviewing: Professionally
trained as used here means a minimum training period of three days of principles and
practices using live interviews that are audio or videotaped and critiqued.
 The recruiter does not have the authority to make decisions with regard to
hiring: Often this is reserved for the boss, who does not know how to conduct an evaluation
interview.
 The actual plant visit is mishandled: Recruits are left waiting for scheduled
appointments, constant interruptions occur during the visit, arrangements by the institute
may not be upto the mark, prior shortlisting of students is not arranged, etc.
 The recruiter does not get involved in the development of the new
employee: Because the recruiter often has the best rapport with the new employee, he or
she should become involved.

25. Guidelines for campus recruiting
 Shortlist campuses
 Choose recruiting team carefully
 Pay smartly, not highly
 Present a clear image
 Do not oversell yourself
 Get in early
 Not everyone fits the bill

26. 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

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

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

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

30. 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.
 Surveys and studies: they could be carried out to find out the
suitability of a particular source for certain positions.

31. 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…

32. Recruitment Policies And Procedures
The company will not:
 Discriminate unfairly against potential applicants on the basis of sex, race,
religion, caste, etc.;
 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. Of course, 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.

33. 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/candidate’s 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?

34. Recruitment: Indian Experiences
Recruitment of trainees:
expectations of Indian companies
Pepsi: Pepsi is a flat organisation. There are a maximum of four reporting levels.
Executives here emphasise achievement, motivation, the ability to deliver come what
may. 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”. Recruitees must
be capable of thinking outside the box, cutting the cake of conventional barriers
whenever and wherever necessary. 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.
Cont…

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

36. Skills recruiters want in India
1. Ability to work in a team
2. Analytical and problem solving skills
3. Communication and other soft skills
4. Creativity and resourcefulness
5. Leadership potential
6. General Managerial skills
7. Entrepreneurial skills