CONTENTSRecruitmentHR Challenges In RecruitmentMeaning Of RecruitmentPurpose & Importance Of RecruitmentRecruitment ProcessSources Of RecruitmentInternal Sources Of RecruitmentInternal Sources Of RecruitmentExternal Sources Of RecruitmentFactors Affecting RecruitmentInternal Factors Affecting RecruitmentExternal Factors Affecting RecruitmentRecruitment Policy Of a CompanyRecent Trends in RecruitmentE-RecruitmentAdvantages & Disadvantages Of E-RecruitmentDifference Between Recruitment And SelectionTypes Of Job SeekersRecruitment Management SystemThe ROI On RecruitmentOutsourcing RecruitmentAdvantage Of Outsourcing RecruitmentChanging Role of Recruitment IntermediariesOutsourcing ProcessHow To Select A Recruitment ConsultantForms Of RecruitmentEqual Employment Opportunity
RecruitmentRecruitment is an important part of an organization’s human resource planning and theircompetitive strength. Competent human resources at the right positions in theorganisation are a vital resource and can be a core competency or a strategic advantagefor it. The objective of the recruitment process is to obtain the number and quality ofemployees that can be selected in order to help the organisation to achieve its goals andobjectives. With the same objective, recruitment helps to create a pool of prospectiveemployees for the organisation so that the management can select the right candidate forthe right job from this pool.Recruitment acts as a link between the employers and the job seekers and ensures theplacement of right candidate at the right place at the right time. Using and following theright recruitment processes can facilitate the selection of the best candidates for theorganisation.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 acompetitive, motivated and flexible human resource that can help achieve its objectives.
HR Challenges In RecruitmentRecruitment is a function that requires business perspective, expertise, ability to find andmatch the best potential candidate for the organisation, diplomacy, marketing skills (as tosell the position to the candidate) and wisdom to align the recruitment processes for thebenefit of the organisation. The HR professionals – handling the recruitment function ofthe organisation- are constantly facing new challenges. The biggest challenge for suchprofessionals is to source or recruit the best people or potential candidate for theorganisation.In the last few years, the job market has undergone some fundamental changes in termsof technologies, sources of recruitment, competition in the market etc. In an alreadysaturated job market, where the practiceslike poaching and raiding are gaining momentum, HR professionals are constantly facingnew challenges in one of their most important function- recruitment. They have to faceand 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.
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 RecruitmentAccording to Edwin B. Flippo, “Recruitment is the process of searching the candidatesfor employment and stimulating them to apply for jobs in the organisation”. Recruitmentis the activity that links the employers and the job seekers. A few definitions ofrecruitment are: A process of finding and attracting capable applicants for employment. The processbegins when new recruits are sought and ends when their applications are submitted. Theresult 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 staffingschedule and to employ effectivemeasures for attracting that manpower in adequate numbers to facilitate effectiveselection of an efficient working force.Recruitment of candidates is the function preceding the selection, which helps create apool of prospective employees for the organisation so that the management can select theright candidate for the right job from this pool. The main objective of the recruitmentprocess is to expedite the selection process.Recruitment is a continuous process whereby the firm attempts to develop a pool ofqualified applicants for the future human resources needs even though specific vacanciesdo not exist. Usually, the recruitment process starts when a manger initiates an employeerequisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS ARE OF THREE TYPES PLANNEDi.e. the needs arising from changes in organization and retirement policy. ANTICIPATEDAnticipated needs are those movements in personnel, which an organization can predictby studying trends in internal and external environment. UNEXPECTEDResignation, 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 theorganisation. Determine present and future requirements of the organization in conjunction with itspersonnel 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 visiblyunder qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leavethe organization only after a short period of time. Meet the organizations legal and social obligations regarding the composition of itsworkforce. Begin identifying and preparing potential job applicants who will be appropriatecandidates. Increase organization and individual effectiveness of various recruiting techniques andsources for all types of job applicantsRecruitment ProcessThe recruitment and selection is the major function of the human resource departmentand recruitment process is the first step towards creating the competitive strength and thestrategic advantage for the organisations. Recruitment process involves a systematicprocedure from sourcing the candidates to arranging and conducting the interviews andrequires many resources and time. A general recruitment process is as follows: Identifying the vacancy:The recruitment process begins with the human resource department receivingrequisitions for recruitment from any department of the company. These contain:• Posts to be filled• Number of persons• Duties to be performed• Qualifications required
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 making1. Identify vacancy2. Prepare job description and person specification3. Advertising the vacancy4. Managing the response5. Short-listing
6. Arrange interviews 7. Conducting interview and decision makingThe recruitment process is immediately followed by the selection process i.e. the finalinterviews and the decision making, conveying the decision and the appointmentformalities.Sources Of RecruitmentEvery organisation has the option of choosing the candidates for its recruitment processesfrom two kinds of sources: internal and external sources. The sources within theorganisation itself (like transfer of employees from one department to other, promotions)to fill a position are known as the internal sources of recruitment. Recruitment candidatesfrom all the other sources (like outsourcing agencies etc.) are known as the externalsources of recruitment.SOURCES OF RECRUITMENT
Internal Sources Of Recruitment1. TRANSFERSThe employees are transferred from one department to another according to theirefficiency and experience.2. PROMOTIONSThe employees are promoted from one department to another with more benefits andgreater responsibility based on efficiency and experience.3. Others are Upgrading and Demotion of present employees according to theirperformance.4. Retired and Retrenched employees may also be recruited once again in case ofshortage of qualified personnel or increase in load of work. Recruitment such peoplesave time and costs of the organisations as the people are already aware of theorganisational culture and the policies and procedures.5. The dependents and relatives of Deceased employees and Disabled employees arealso done by many companies so that the members of the family do not becomedependent on the mercy of others.
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. Theseagencies are particularly suitable for recruitment of executives and specialists. It is alsoknown 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.
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:
FACTORS AFFECTING RECRUITMENTInternal Factors Affecting RecruitmentThe internal forces i.e. the factors which can be controlled by the organisation are:1. RECRUITMENT POLICYThe recruitment policy of an organisation specifies the objectives of recruitment andprovides a framework for implementation of recruitment programme. It may involveorganizational system to be developed for implementing recruitment programmes andprocedures by filling up vacancies with best qualified people.
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.
External Factors Affecting RecruitmentThe external forces are the forces which cannot be controlled by the organisation. Themajor external forces are:1. SUPPLY AND DEMANDThe availability of manpower both within and outside the organization is an importantdeterminant in the recruitment process. If the company has a demand for moreprofessionals and there is limited supply in the market for the professionals demanded bythe company, then the company will have to depend upon internal sources by providingthem special training and development programs.2. LABOUR MARKETEmployment conditions in the community where the organization is located willinfluence the recruiting efforts of the organization. If there is surplus of manpower at thetime of recruitment, even informal attempts at the time of recruiting like notice boardsdisplay of the requisition or announcement in the meeting etc will attract more thanenough 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,
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 CompanyIn today’s rapidly changing business environment, a well defined recruitment policy isnecessary 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, whichcan be executed effectively to recruit the best talent pool for the selection of the rightcandidate at the right place quickly. Creating a suitable recruitment policy is the first stepin the efficient hiring process. A clear and concise recruitment policy helps ensure asound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation ofrecruitment programme. It may involve organizational system to be developed forimplementing recruitment programmes and procedures by filling up vacancies with bestqualified 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 employmentA 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.
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 RecruitmentThe following trends are being seen in recruitment: OUTSOURCINGIn India, the HR processes are being outsourced from more than a decade now. Acompany may draw required personnel from outsourcing firms. The outsourcing firmshelp the organisation by the initial screening of the candidates according to the needs ofthe organisation and creating a suitable pool of talent for the final selection by theorganisation. Outsourcing firms develop their human resource pool by employing peoplefor 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 managements focus to strategic level processes of HRM
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.
E-RecruitmentThe 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 therecruitment process. The tool can be either a job website like naukri.com, the organisation’scorporate web site or its own intranet. Many big and small organizations are using Internet as asource of recruitment. They advertise job vacancies through worldwide web. The job seekerssend 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 prospectiveemployees depending upon their requirements.The internet penetration in India is increasing and has tremendous potential. According to astudy by NASSCOM – “Jobs is among the top reasons why new users will come on to theinternet, besides e-mail.” There are more than 18 million resume’s floating online across theworld.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 thejob portal and also searching for the suitable resumes posted on the site corresponding to theopening 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 seekerscan submit their resumes into the database of the organisation for consideration in future, asand when the roles become available.Resume Scanners: Resume scanner is one major benefit provided by the job portals to theorganisations. It enables the employees to screen and filter the resumes through pre-definedcriteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes to the employees facilitating thejust-in-time hiring by the organisations. Also, the jobs can be posted on the site almostimmediately and is also cheaper than advertising in the employment newspapers. Sometimescompanies can get valuable references through the “passers-by” applicants. Online recruitmenthelps the organisations to automate the recruitment process, save their time and costs onrecruitments.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-RecruitmentThere are many benefits – both to the employers and the job seekers but the e-recruitmentis 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 inthe newspapers.
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 anautomated way. Recruitment websites also provide valuable data and information regarding thecompensation offered by the competitors etc. which helps the HR managers to takevarious HR decisions like promotions, salary trends in industry etcDisadvantages of E-RecruitmentApart from the various benefits, e-recruitment has its own share of shortcomings anddisadvantages. 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.
Difference Between Recruitment And SelectionBoth recruitment and selection are the two phases of the employment process. The differencesbetween the two are:1. Recruitment is the process of searching the candidates for employment and stimulating themto apply for jobs in the organisation WHEREAS selection involves the series of steps by whichthe 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 theselection of best candidates for the organisation, by attracting more and more employees toapply in the organisation WHEREAS the basic purpose of selection process is to choose the rightcandidate to fill the various positions in the organisation.3. Recruitment is a positive process i.e. encouraging more and more employees to applyWHEREAS 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 selectionis 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 acontract of service between the employer and the selected employee.
Types Of Job SeekersTypes Of Job Seekers1. Quid Pro QueThese are the people who say that “ I can do this for you, what can you give me” These peoplevalue high responsibilities, higher risks, and expect higher rewards, personal development andcompany profiles doesn’t matter to them.2. I will be with youThese people like to be with big brands. Importance is given to brands. They are not botheredabout work ethic, culture mission etc.3. I will do you what you wantThese people are concerned about how meaningful the job is and they define meaningparameters criteria known by previous job.4. Where do you want me to comeThese people observe things like where is your office, what atmosphere do you offer. Careerprospects and exciting projects don’t entice them as much. It is the responsibility of the recruiterto decide what the employee might face in given job and thus take decision. A good decision willhelp cut down employee retention costs and future recruitment costs.Recruitment Management SystemRecruitment management system is the comprehensive tool to manage the entire recruitmentprocesses of an organisation. It is one of the technological tools facilitated by the informationmanagement systems to the HR of organisations. Just like performance management, payroll and
other systems, Recruitment management system helps to contour the recruitment processes andeffectively managing the ROI on recruitment.The features, functions and major benefits of the recruitment management system are explainedbelow: 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 whichhelps to sane the time and costs of the recruiters and improving the recruitment processes.
The ROI On RecruitmentBefore making any investment, every organisation would want to evaluate the investment byanswering 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 oninvestment (ROI) on recruitment is a complicated task for an organisation. Indeed, it is difficultto judge the success of their recruitment processes. Instead, recruitment is one activity thatcontinues in an organisation without anyone ever realizing its worth or measuring its impact onthe organisation’s business.According to a survey, 38 % of organisations do not prepare or produce any kind of documentsor reports on their recruitment processes, and there is no accountability of the HR department forthe costs incurred and the opportunities missed.With the increasing strategic focus on the human resources, more and more organisations areadopting one or the other way for calculating the ROI on its recruitments. Many organisationsare examining their HR functions and processes and are trying to quantify their results andreturns.A recruitment professional or manager can calculate and maximize the return on investments onits 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
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 theorganisation.Outsourcing RecruitmentOutsourcing the human resource (HR) processes is the latest practice being followed by middleand large sized organizations. It is being witnessed across all the industries. In India, the HRprocesses are being outsourced from nearly a decade now. Outsourcing industry is growing at ahigh rate.Human Resource Outsourcing refers to the process in which an organisation uses theexpert services of a third party (generally professional consultants) to take care of its HRfunctions while HR management can focus on the strategic dimension of their function. Thefunctions 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 HRfunctions of an organisation. HR Consultancies such as Ma Foi and Planman Consulting providesuch services through expert professional consultants. Human resources business processoutsourcing (HR BPO) is a major component of the worldwide BPO market. Performancemanagement outsourcing involves all the performance monitoring, measurement, managementbeing outsourced from a third party or an external organisation.Many organizations have started outsourcing its recruitment process i.e. transferring all or somepart of its recruitment process to an external consultant providing the recruitment services. It iscommonly known as RPO i.e. recruitment process outsourcing. More and more medium andlarge sized organizations are outsourcing their recruitment process right from the entry level jobsto the C-level jobs.The present value of the recruitment process outsourcing industry (RPO) in India is estimated tobe $2.5 billion and it is expected to grow at the annual rate of 30-40 per cent for the next couple
of years. According to a recent survey, only 8-10 per cent of the Indian companies are completerecruitment processes. However, the number of companies outsourcing their recruitmentprocesses is increasing at a very fast rate and so is the percentage of their total recruitmentprocesses being outsourced.Outsourcing organizations strive for providing cost saving benefits to their clients. One of themajor advantages to organizations, who outsource their recruitment process, is that it helps tosave up to as much as 40 per cent of their recruitment costs. With the experience, expertise andthe economies of scale of the third party, organizations are able to improve the quality of therecruits and the speed of the whole process. Also, outsourcing enables the human resourceprofessionals 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 theultimate power of decision making of recruiting with the organisation itself. The portion of therecruitment cycle that is outsourced range from preparing job descriptions to arranginginterviews, the activities that consume almost 70 per cent of the time of the whole recruitmentprocess.Outsourcing the recruitment processes for a sector like BPO, which faces an attrition of almost50-60 per cent, can help the companies in BPO sector to save costs tremendously and focus onother 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: Vodafoneoutsources its recruitment activities to Alexander Mann Solutions (RPO service provider). Wiprohas outsourced its recruitment process to MeritTrac. Yes bank is also known to outsource 50 percent of its recruitment processes.
Advantage Of Outsourcing RecruitmentTraditionally, recruitment is seen as the cost incurring process in an organization. HRoutsourcing helps the HR professionals of the organisations to concentrate on the strategicfunctions and processes of human resource management rather than wasting their efforts, timeand money on the routine work.Outsourcing the recruitment process helps to cut the recruitment costs to 20 % and also provideeconomies 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 aswell as the consultancies that provide the service to the corporates. Apart from increasing theirrevenues, outsourcing provides business opportunities to the service providers, enhancing theskill set of the service providers and exposure to the different corporate experiences therebyincreasing their expertise.The advantages accruing to the corporates are:
turning the managements 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 advantageTherefore outsourcing helps both the organisations and the consultancies to grow and performbetter.Changing Role of Recruitment IntermediariesRecruitment consultancies, agencies or intermediaries are witnessing a boom in the demand oftheir 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 jobseekers and the employers.But at the same time, one of the major threats faced by this industry isthe growing popularity of e-recruitment. With the changing demand, technologies and thepenetration and increasing use of internet, the recruitment consultancies or the intermediaries arefacing tough competition. To retain and maintain their position in the recruitment market, therecruitment intermediaries or consultants (as they are commonly known) are witnessing andincorporating 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 oftechnology and the Internet on the recruitment processes. 70 per cent of employers reported theuse of application portal on their company’s official website. Apart from that, the emergingpopularity 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 thesuitable and talented candidates and the structured recruitment processes. The recruitment
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 ofrecruitment.To retain their position as the service providers in the recruitment market, the recruitmentintermediaries are providing vale added services to the organisations. They are incorporating theuse of internet and job portals, making their services more efficient.Despite of the growing use of the internet, the recruitment intermediaries are predicted tocontinue dominating the recruitment market in the anticipated future.Outsourcing ProcessOutsourcing Process
How To Select A Recruitment ConsultantIf an organisation decides to outsource its recruitment processes or activities, it is very importantto find and select a suitable recruitment consultant or consultancies, which can deliver resultsaccording to the needs of the organisation. Today, there are thousands of consulting firms(consultancies) as well as freelance consultants working independently. An organisation looksfor 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
Recruitment Process in Top Organisations inIndian IndustryRecruitment StrategiesRecruitment is of the most crucial roles of the human resource professionals. The level ofperformance of and organisation depends on the effectiveness of its recruitment function.Organisations have developed and follow recruitment strategies to hire the best talent for theirorganisation and to utilize their resources optimally. A successful recruitment strategy should bewell 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 thefollowing 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.
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 RecruitmentRecruitment is a function that requires business perspective, expertise, ability to find and matchthe best potential candidate for the organisation, diplomacy, marketing skills (as to sell theposition to the candidate) and wisdom to align the recruitment processes for the benefit of theorganisation. The HR professionals – handling the recruitment function of the organisation- areconstantly facing new challenges. The biggest challenge for such professionals is to source orrecruit the best people or potential candidate for the organisation.In the last few years, the job market has undergone some fundamental changes in terms oftechnologies, sources of recruitment, competition in the market etc. In an already saturated jobmarket, where the practices like poaching and raiding are gaining momentum, HR professionalsare constantly facing new challenges in one of their most important function- recruitment. Theyhave 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 tunewith the changing times, i.e. the changes taking place across the globe. HR should maintain thetimeliness 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 ExpatriatesExpatriate 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 parentcountry, i.e. expatriates are the third country nationals.The unavailability of the required skills and talents takes the organisation to source talent fromother countries. The procedures and processes of recruiting and selecting the human resourcesare 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 ofexpatriates. The recruitment and selection procedures and considerations are drastically differentfor expatriates than that of the domestic employees. Recruitment of expatriates involves greatertime, 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 otherhuman resource activities and can affect the performance of the employees as well as theorganisation.Recruiting expatriates require special considerations and skills to select the best person for thejob. Except for a few expatriate selection policies, the expatriate selection criterion is generallyorganisation and nation specific.The recruiters for recruiting the expatriates should be carefully selected and trained. Therecruitment strategies for expatriates should be aligned with requirements of the job. Theinterviews 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 cultureA few researches in this field also suggest that women are morel likely to be successful in certainpositions as expatriates as they are more sensitive towards new culture and people. Recruitmentof expatriates should be followed by cultural and sensitivity training, and language training.Head HuntingHeadhunting refers to the approach of finding and attracting the best experienced person with therequired skill set. Headhunting involves convincing the person to join your organization.
Headhunting ProcessForms Of RecruitmentExpatriate 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 parentcountry, i.e. expatriates are the third country nationals.The unavailability of the required skills and talents takes the organisation to source talent fromother countries. The procedures and processes of recruiting and selecting the human resourcesare 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 ofexpatriates. The recruitment and selection procedures and considerations are drastically differentfor expatriates than thatof the domestic employees. Recruitment of expatriates involves greater time, monetary resourcesand other indirect costs. Improper recruitment and selection can cause the expatriates to returnhastily or a decline in their performance.A mismatch between job (its requirements) and people can reduce the effectiveness of otherhuman resource activities and can affect the performance of the employees as well as theorganisation.Recruiting expatriates require special considerations and skills to select the best person for thejob. Except for a few expatriate selection policies, the expatriate selection criterion is generallyorganisation and nation specific.The recruiters for recruiting the expatriates should be carefully selected and trained. Therecruitment strategies for expatriates should be aligned with requirements of the job. Theinterviews 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 cultureA few researches in this field also suggest that women are morel likely to be successful in certainpositions as expatriates as they are more sensitive towards new culture and people. Recruitmentof expatriates should be followed by cultural and sensitivity training, and language training.
Equal Employment OpportunityEqual opportunity employment refers to the approach of the employers to ensure the practice ofbeing fair and impartial in the employment process. *The term "Equal OpportunityEmployment" was first given by President Lyndon B. Johnson when he signed Executive Order11246 which was created to prohibit federal contractors from discriminating against employeeson the basis of race, sex, creed, religion, color, or national origin*. The scope of the order alsocovered the discrimination on the basis of the minority status.Discrimination in employmentDiscrimination refers to the any kind of prejudice, biasness or favoritism on the basis of disability race age sex sexuality pregnancy Marital statusin employment. No person should be treated less favourably than any other on the basis of thespecified issues above. Many countries (like SA) have already implemented Equal OpportunityAct, making it against the law to treat anybody unfairly.Diversity in workforceWith the globalization and the increasing size of the organisations, the diversity in the workforceis 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
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 theindividual on the basis of his knowledge, skills, abilities and merit. And the policy should coverall 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 societyhttp://recruitment.naukrihub.com/employment-opportunity.html