Factors Influencing Recruitment Process
Given its key role and external visibility, recruitment is naturally subject to influence of several factors. These include external as well as internal forces.
Of particular importance is the supply and demand of specific skills in the labor market. If the demand for a particular skill is high relative to the supply, an extraordinary recruiting effort may be needed. For instance, the demand for programmers and financial analysts is likely’ to be higher than their supply, as opposed to the demand-supply relationship for non-technical employees.
When the unemployment rate in a given area is high, the company’s recruitment process may be simpler. The number of unsolicited applicants is usually greater, and the increased size of the labor pool provides better opportunities for attracting qualified applicants. On the other hand, as the unemployment rate drops, recruiting efforts must be increased and new sources explored.
For a long time the issue relating to unemployment haunted everyone across globe. Policy makers, politicians, administrators, union leaders and academicians used to harp on the problem frequently. Not any more. One and half decades of liberalization has resulted in economic prosperity making people forget about unemployment. The issue now is employability and not unemployment. Any individual worth capable of something is sure of securing a job, of course in the private sector.
Labor-market conditions in a local area are of primary importance in recruiting for most non-managerial, supervisory and middle-management positions. However, so far as recruitment for executive and professional positions is concerned, conditions of all market are important.
Another external factor is political and legal consideration. Reservation of jobs for SCs, STs, minorities, and other backward classes (OBCs) is a political decision. There is a strong case for giving preference to people hailing from less-advantaged sections of the society. Reservation has been accepted as inevitable by all sections of the society. The Supreme Court also has agreed upon 50 per cent reservation of seats and jobs.
We have Central and State Acts dealing with labor. They cover working conditions, compensation, retirement benefits, and safety and health of employees in industrial establishments. There are Acts which deal with recruitment and selection. Child Labor (Prohibition and Regulation) Act, 1986, for instance, prohibits employment of children in certain employments, and seeks to regulate their working conditions in certain other employments. Similarly, we have the Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, which mandates that employers (industrial establishments employing 25 workers each and above) must notify the vacant positions to the employment exchanges. The Apprentices Act, 1961, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, the Factories Act, 1948, and the Mines Act, 1952, also deal with recruitment. Above all these, we have the Constitution which prohibits discrimination in matters of employment and also provides for protective discrimination to the less privileged sections of the society. Preferences to sons of the soil is another political factor. Political leaders clamour that preference must be given to the people of their respective states in matters of employment.
The company’s image also matters in attracting large number of job seekers. Blue chip companies attract large number of applications. Often, it is not the money that is important. It is the perception of the job-seekers about the company that matters in attracting qualified prospective employees.
The above are some of the external forces influencing the recruitment function of an organization. In addition to these, there are certain internal forces which deserve consideration while recruiting personnel.
One such internal factor is the recruiting policy of the organization. Most firms have a policy on recruiting internally (from own employees) or externally (from outside the organization), analogous to the make or buy policy in inventory management. Generally, the policy is to prefer internal sourcing, as own employees know the company well and can recommend candidates who fit the organization’s culture.
Another related policy is to have temporary and part-time employees. An organization hiring temporary and part-time employees is in a less advantageous position in attracting sufficient applications.
In multinational corporations (MNCs), there is the policy relating to the recruitment of local citizens. MNCs operating in our country prefer local citizens as they can understand local languages, customs and business practices better.
A major internal factor that can determine the success of the recruiting program is whether or not the company engages in HRP. In most cases, a company cannot attract prospective employees in sufficient numbers and with required skills overnight. It takes time to examine the alternatives regarding the appropriate sources of recruits and the most productive methods for obtaining them. Once the best alternatives have been identified, recruiting plans may be made. Effective HRP greatly facilitates the recruiting efforts.
Size is another internal factor having its influence on the recruitment process. An organization with one hundred thousand employees will find recruiting less problematic than a firm with just one hundred employees.
Cost of recruiting is yet another internal factor that has to be considered. Recruiting costs are calculated per new hire and the figure is considerable nowadays. Recruiters must, therefore, operate within budgets. Careful HRP and forethought by recruiters can minimize recruitment costs. One cost saving measure, for instance, is recruiting for multiple job openings simultaneously. The best solution is to use proactive personnel practices to reduce employee turnover, thus minimizing the need for recruiting. Evaluating the quality, quantity and costs of recruitment helps ensure that it is efficient and cost-effective.
Finally, an organization registering growth and expansion will have more recruiting on hand than the one which finds its fortunes declining.