Unit: 4 (Four)

RECRUITMENT
Recruitment is the process of searching for and obtaining applications so as to build a pool of job
seekers from whom the right people for the right jobs may be selected.
The purpose of recruitment is to build a pool of applicants.
Recruitment represents the first contact an organization makes with potential employees.
It is through recruitment that many individuals will come to know a company and eventually decide
whether they wish to work for it.
It is an ongoing process because employee leave the firm in search of greener pastures-some retire
and some die in the saddle.
More importantly, an enterprise grows, diversifies, takes over other units-all necessitating hiring of
new employees.
In fact, the recruitment function stops only when the company ceases to exist.
Theoretically, recruitment process is said to end with the receipt of application.

FACTORS AFFECTING RECRUITMENT

1) External factors
a. Supply and demand- If the demand for a particular skill is high relative to the supply, an
extraordinary recruiting efforts may be needed. The situation of demand and supply of specific skills
affects recruitment.
b. Unemployment rate- If unemployment rate is high, recruitment process becomes simpler because
large number of people can be attracted with minimum effort.
c. Labor market- Availability of manpower in a local area, specially for non-managerial, supervisory
and middle- management positions and in the country level for executive and professional positions
has effect on recruitment.
d. Political-legal- Reservations of jobs for scheduled castes, scheduled tribes, minorities and other
ethnic and backward classes, child labor act have effect on recruitment.
e. Sons of soil- Preferences to local or people of their respective state in matters of employment.
f. Image- It is the perception of the job-seekers about the company that matters in attracting
qualified prospective employees.
 2. Internal factors:
a. Recruitment policy- Recruiting internally or externally, recruitment of local citizens, policy of
temporary and part time workers.
b. Human resource planning- A company cannot attract prospective employees in sufficient
numbers and with required skills overnight. It takes time. Effective HRP greatly facilitates the
recruiting efforts.

c. Size of the firm- Bigger the size less problematic.

d. Cost- Cost incurred in recruitment process, must operate within budgets, multiple job
openings simultaneously may minimize cost.
e. Growth & expansion- An organization going on growth and expansion will have more
recruiting on hand than the one which finds its fortune declining.
RECRUITMENT METHODS
1. Internal methods:
Job posting, employee referral, human resource inventory search
Internal sources
a) Present employees- Promotion, transfers, job rotation
b) Employee referrals- finders fees, Microsoft, Wipro, Infosys, Texas instrument
c) Formers employees- Retired employees may be willing to come back on part time basis, may
recommend someone, people who have left the company for some reasons or other are willing to
come back and work
d) Previous applicants- Although not truly an internal source, can be contacted quickly to fill an
unexpected opening.

2. External methods/sources:
a) Advertisement
b) Professional or trade associations-
c) Employment exchange-
d) University/colleges-
e) Walk-ins, write-ins and talk-ins-
f) Consultants-
g) Contractors-
h) Competitors-
i) E-recruiting-

ALTERNATIVES TO RECRUITMENT
Organizations search for alternatives to recruitment because of the cost of recruiting. The
alternatives to recruitments are:
a) Overtime-
b) Employee leasing- Staff outsourcing, paying charges to a leasing company or consulting firm that
handles payroll, employee benefits and routine HR functions for the client company.
c) Temporary employment