UNIT 2A: RECRUITMENT AND SELECTION PROCESS

Introduction to Recruitment

Recruitment is a critical human resource management (HRM) function aimed at searching

for and attracting potential job candidates to fill organizational vacancies. It is the initial
point of contact between an organization and prospective employees, playing a pivotal role
in building a competent workforce. The primary objective of recruitment is to create a pool
of qualified applicants from which suitable candidates can be selected. Effective
recruitment enhances the quality of selection outcomes, reduces employee turnover, and
aligns with organizational goals by ensuring a match between job requirements and
candidate qualifications. The process is influenced by external factors, such as labor
market conditions, and internal factors, such as organizational recruitment policies.
Recruitment involves five interrelated stages: planning, strategy development,
searching, screening, and evaluation and control. By aligning organizational needs with
applicant expectations through tools like realistic job previews and job compatibility
questionnaires, recruitment fosters long-term employee satisfaction and organizational
success. PSSSE

External Factors Influencing Recruitment

Several external factors shape the recruitment process:

1. Political and Legal Considerations:

a. Reservations: In some regions, political decisions mandate job reservations
for specific groups, such as Scheduled Castes (SCs), Scheduled Tribes (STs),
minorities, and Other Backward Classes (OBCs). These policies aim to
provide opportunities to less-advantaged sections of society and are widely
accepted, with the Supreme Court endorsing up to 50% reservation for seats
and jobs.
b. Labor Laws: Central and State Acts regulate recruitment and selection. For
example:
i. Child Labour (Prohibition and Regulation) Act, 1986: Prohibits the
employment of children in certain occupations and regulates their
working conditions in others.
 ii. Employment Exchange (Compulsory Notification of Vacancies)
Act, 1959: Mandates that employers in industrial establishments with
25 or more workers notify vacant positions to employment
exchanges.
c. Preference for Local Candidates: Political pressures often demand
prioritizing candidates from the respective state or region, referred to as
“sons of the soil” policies.
2. Company Image:
a. The reputation of an organization significantly impacts its ability to attract
candidates. Blue-chip companies, known for their strong brand and positive
work environment, receive a large number of applications. Candidates often
prioritize the company’s reputation over monetary compensation, as
perceptions about the organization influence their decision to apply.

Internal Factors Influencing Recruitment

Internal factors within an organization also play a significant role in shaping the
recruitment process:

1. Recruitment Policy:
a. Organizations typically have policies favoring either internal recruitment
(promoting or transferring existing employees) or external recruitment
(hiring from outside). Internal recruitment is often preferred because existing
employees are familiar with the organization’s culture and can recommend
candidates who align with it, similar to a “make” policy in inventory
management.
2. Human Resource Planning (HRP):
a. Effective HRP is crucial for successful recruitment. It involves analyzing the
organization’s staffing needs, identifying appropriate sources of recruits, and
determining the most productive recruitment methods. Without proper HRP,
attracting sufficient numbers of qualified candidates can be challenging, as
recruitment cannot be executed overnight.
3. Organizational Size:
a. The size of an organization affects its recruitment process. Larger
organizations with thousands of employees face fewer recruitment
challenges compared to smaller firms with limited resources and reach.
4. Recruitment Costs:
 a. Recruitment is a costly process, with expenses calculated per new hire. To
manage costs, organizations must operate within budgets and adopt cost-
saving measures, such as recruiting for multiple job openings
simultaneously or using proactive personnel practices to reduce turnover,
thereby minimizing the need for frequent recruitment.
5. Evaluation of Recruitment Efficiency:
a. Evaluating the quality, quantity, and costs of recruitment ensures efficiency
and cost-effectiveness. Careful HRP and proactive measures can
significantly reduce recruitment expenses.

Recruitment Process

The recruitment process involves identifying and attracting job seekers to create a pool of
qualified applicants. It comprises five key stages:
PSSSE
1. Recruitment Planning:
a. Number of Contacts: Organizations plan to attract more applicants than
needed, as some may be uninterested or unqualified. Yield ratios (yRs) are
used to estimate the number of applicants required to fill vacancies. For
example, if a company needs 30 hires and the overall yield ratio is 100:1, the
recruitment target would be 3,000 applicants. Yield ratios are calculated at
various stages, such as:
i. Resumes generated to potentially qualified candidates (e.g., 10:1).
ii. Qualified candidates to interviewees (e.g., 5:1).
iii. Interviewees to job offers (e.g., 4:3).
iv. Offers to acceptances (e.g., 3:2).
b. Type of Contacts: This involves determining the qualifications, experience,
and characteristics of candidates based on job descriptions and
specifications.
2. Strategy Development:
a. Make or Buy Decision:
i. Organizations decide whether to “make” (hire less skilled workers
and invest in training) or “buy” (hire skilled professionals). Hiring
skilled workers allows immediate productivity but comes with higher
salary costs, which may outweigh the benefits.
b. Technological Sophistication:
 i. Advances in technology, such as computerized applicant screening,
have expanded recruitment capabilities. Employers can scan national
and international candidate pools, while job seekers can access
opportunities more easily (e.g., sending video resumes).
c. Where to Look:
i. Recruitment targets specific labor markets based on job type:
1. National markets for managerial and professional roles.
2. Regional or local markets for technical employees.
3. Local markets for clerical and blue-collar workers.
ii. Factors like the organization’s location and labor market conditions
influence this decision. For example, a company in a rural area may
need to recruit managerial talent nationally, while urban firms can
rely on local markets.
d. How to Look:
i. Recruitment methods include internal and external sources (detailed
below).
e. When to Look:
i. Timing is critical. Effective recruitment strategies determine the
optimal time to initiate recruitment activities to align with
organizational needs.
3. Searching:
a. Source Activation: Recruitment begins when a vacancy is verified through
an employee requisition. Well-developed sources and search methods
result in a high volume of applications.
b. Selling: Organizations must balance attracting desirable candidates with
avoiding overselling their virtues. The choice of media (e.g., business
magazines for high credibility vs. employment exchanges for lower
credibility) significantly impacts the effectiveness of recruitment messages.
4. Screening:
a. Screening involves scrutinizing applications to shortlist eligible candidates.
For example, in university hiring, applications are screened, and only
qualified candidates are invited for interviews conducted by a selection
committee.
5. Evaluation and Control:
a. Recruitment incurs significant costs, including:
i. Salaries for recruiters.
ii. Time spent on preparing job descriptions, advertisements, and
agency coordination.
 iii. Advertising and agency fees.
iv. Costs of supporting literature, administrative expenses, and overtime
while vacancies remain unfilled.
b. Organizations must evaluate the validity of recruitment methods and the
overall effectiveness of the process. Statistical data on advertising costs,
process duration, and candidate suitability should be analyzed, though such
evaluations are rarely conducted in practice.

Recruitment Methods: Internal Recruitment

Internal recruitment involves seeking applicants from within the organization. Key internal
sources include:

1. Present Employees: PEFP

a. Promotions and transfers are effective for filling higher positions.

Advantages include:
i. Enhancing public relations and employee morale.
ii. Encouraging ambitious and competent individuals.
iii. Leveraging readily available performance data for better selection.
iv. Lower costs compared to external recruitment.
v. Familiarity of internal candidates with the organization’s culture.
vi. Serving as a training mechanism for developing future managers.
b. Careful planning ensures promotions act as a developmental tool.
2. Employee Referrals:
a. Employees can recommend family or friends, often incentivized by “finders
fees” (e.g., Microsoft offers referral bonuses for Internet experts; Infosys and
Wipro pay ₹10,000–₹15,000 per successful hire).
b. Benefits include low-cost recruitment and access to a large pool of
candidates who are pre-vetted by employees familiar with job requirements.
c. Risks include inbreeding, where groups of employees from one firm join
another, bringing external cultural practices, forming cliques, or demanding
privileges.
3. Former Employees:
a. Retired employees may return part-time or recommend candidates. Some
who left for other jobs may return for better opportunities.
 b. Up to 10–15% of vacancies can be filled through re-hires. HR teams use
archived contact data and professional networks to reconnect with former
employees, excluding those terminated for performance or ethical issues.
4. Previous Applicants:
a. Although not strictly internal, previous applicants can be contacted quickly
and inexpensively to fill unexpected vacancies. This method is more suitable
for unskilled or semi-skilled roles but can also apply to professional
positions.

Recruitment Methods: External Recruitment PACWO

External recruitment sources are more diverse and include:

1. Professional and Trade Associations:

a. These provide placement services, such as job seeker lists and access
during conventions. Trade journals and magazines carry classified ads,
making them ideal for attracting highly educated or skilled candidates,
especially for technical roles.
2. Advertisements:
a. A popular method due to its wide reach, advertisements describe jobs,
benefits, and application processes. They appear in newspapers,
professional journals, or as “blind ads” (where the employer’s identity is
hidden).
b. Response rates depend on:
i. Company identification (large firms avoid blind ads for lower-level
roles).
ii. Labor market conditions.
iii. Specificity of job requirements in the ad.
3. Campus Recruitment:
a. Colleges, universities, and institutes are prime sources for managerial,
professional, and technical talent. Research labs and sports fields also
attract recruiters.
4. Walk-ins, Write-ins, and Talk-ins:
a. Walk-ins: Candidates submit unsolicited applications or resumes, ideal for
entry-level or unskilled roles. They also create a pool for future needs.
b. Write-ins: Candidates send written inquiries and are asked to complete
application forms.
 c. Talk-ins: Candidates meet recruiters for detailed discussions without
submitting formal applications, gaining popularity for their efficiency.
5. Other External Sources:
a. Employment Exchanges: Mandated by law in some cases, these connect
employers with job seekers.
b. Consultants and Contractors: Specialized agencies provide recruitment
services.
c. Displaced Persons: Organizations may hire individuals affected by
economic or social disruptions.
d. Radio and Television: Used for broad outreach, though less common.
e. Acquisitions and Mergers: New talent may be acquired through corporate
restructuring.
f. Competitors: Poaching talent from rival firms is a strategic approach.

Conclusion

The recruitment and selection process is a multifaceted function critical to organizational

success. It involves careful planning, strategic decision-making, and the use of diverse
internal and external sources to attract qualified candidates. External factors, such as
political and legal considerations and company image, and internal factors, like
recruitment policies and HRP, significantly influence the process. The five-stage
recruitment process—planning, strategy development, searching, screening, and
evaluation—ensures a systematic approach to building a competent workforce. By
leveraging internal sources like promotions and referrals and external sources like
advertisements and campus recruitment, organizations can create a robust talent
pipeline. However, controlling costs and evaluating the effectiveness of recruitment
methods are essential for optimizing outcomes. Through alignment with organizational
goals and candidate expectations, effective recruitment fosters employee satisfaction and
long-term success.