Session 7 recruitment


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Session 7 recruitment

  1. 1. Recruitment
  2. 2. DefinitionRecruitment 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. 3. Aims of RecruitmentThe 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. 4. Edwin D. Flippo says
  5. 5. Factors affecting recruitment1) Size of the organization2) Employment conditions in the community where the organization is located3) The effects of past recruiting efforts which show the organization’s ability to locate and keep better performing people4) Working conditions and salary and benefits offered5) Rate of growth of organization6) Level of seasonality of operations7) Future expansions8) Cultural, economic and legal factors
  6. 6. Environment Affecting RecruitmentThe Economic EnvironmentEconomic 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 EnvironmentMajor 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. 7. Environment Affecting RecruitmentThe Technological EnvironmentNew 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 EnvironmentPolitical 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. 8. Environment Affecting RecruitmentThe Legal EnvironmentThe 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. 9. Environment Affecting RecruitmentThe 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. 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. 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. 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. 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. 14. Recruitment constraints for HR manager1) Organization’s image2) Attractiveness quotient3) Internal organizational policies4) Union requirements5) Influence of government
  15. 15. Steps of recruitment process
  16. 16. Pre-requisites of a sound RecruitmentPolicy 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. 17. Principle elements governingRecruitment 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. 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. 19. Merits and demerits of hiring people fromwithin 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. 20. Merits and demerits of hiring peoplefrom outside Merits DemeritsWide choice: The organisation has the Expensive: Hiring costs could go upfreedom to select candidates from a large substantially. Tapping multifarious sources ofpool. 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 suitablestir up the existing employees and pave the employees. Where suitable ones are notway for innovative ways of working. available, the process has to be repeated.Motivational force: It helps in motivating Demotivating: Existing employees who haveinternal employees to work hard and compete put in considerable service may resist thewith 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 beenhelp an employee to work to the best of his recognised by the organisation, forces them toabilities. work with less enthusiasm and motivation.Long term benefits: Talented people could Uncertainty: There is no guarantee that thejoin the ranks, new ideas could find meaningful organisation, ultimately, will be able to hireexpression, a competitive atmosphere would the services of suitable candidates. It may endcompel people to give of their best and earn up hiring someone who does not ‘fit’ and whorewards, etc. may not be able to adjust in the new set-up.
  21. 21. Methods Of RecruitmentInternal methods Promotions and transfers: Promotion is the movement of anemployee from a lower level position to a higher level position with increasein 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 currentemployee regarding a job applicant.
  22. 22. Possible benefits and costs ofemployee referrals Recommender gives a realistic picture about the job. The applicant canweigh the pros and cons carefully before handing over the CV. The applicant ismore likely to accept an offer if one is made and once employed, to have ahigher job survival. It‘s an excellent means of locating potential employees in those hard-to-fillpositions. The recommender earns a reward and the company can avoid expensiverecruiting search – in case the candidate gets selected. Recommenders may confuse friendship with job competence. Factors such asbias, nepotism, and eagerness to see their friends in the company may come in theway of hiring a suitable candidate.
  23. 23. Direct methods Campus recruitmentIt is a method of recruiting by visiting and participating in collegecampuses and their placement centres. Possibly the most popular way ofhiring the best brains in the country, this method has to be used with lotof care and caution. Campus hiring, of course, is not easy.
  24. 24. Common Mistakes made in campusrecruiting Failure to utilise a full-time professional recruiter: Often recruitment is used asa training experience for new employees. This results in rapid turnover in the recruitmentoffice. The recruiter is not professionally trained in interviewing: Professionallytrained as used here means a minimum training period of three days of principles andpractices using live interviews that are audio or videotaped and critiqued. The recruiter does not have the authority to make decisions with regard tohiring: Often this is reserved for the boss, who does not know how to conduct an evaluationinterview. The actual plant visit is mishandled: Recruits are left waiting for scheduledappointments, constant interruptions occur during the visit, arrangements by the institutemay not be upto the mark, prior shortlisting of students is not arranged, etc. The recruiter does not get involved in the development of the newemployee: Because the recruiter often has the best rapport with the new employee, he orshe should become involved.
  25. 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. 26. Indirect methods Newspaper advertisements Television and radio advertisementsThird party methods Private employment search firms Employment exchanges Gate hiring and contractors Unsolicited applicants/walk-ins Internet recruiting
  27. 27. Alternatives to recruitingOvertime: 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 mayprove to be less productive and turn out less than optimal performance. Employees may slowdown their pace of work during normal working hours in order to earn overtime daily. Incourse of time, overtime payments become quite routine and if, for any reason, these paymentsdo not accrue regularly, employees become resentful and disgruntled.Subcontracting: To meet a sudden increase in demand for its products and services, the firmmay sometimes go for subcontracting – instead of expanding capacities immediately. Expansionbecomes a reality only when the firm experiences increased demand for its products for aspecified period of time. Meanwhile, the firm can meet increased demand by allowing an outsidespecialist agency to undertake part of the work, to mutual advantage. Cont…
  28. 28. Alternatives to recruitingTemporary employees: Employees hired for a limited time to perform a specific job arecalled temporary employees. They are particularly useful in meeting short term humanresource needs. A short term increase in demand could be met by hiring temporary handsfrom agencies specialising in providing such services. It’s a big business idea in United Statesthese days ($3-$4 billion industry). In this case the firm can avoid the expenses of recruitmentand the painful effects of absenteeism, labour turnover, etc. It can also avoid fringe benefitsassociated with regular employment. However, temporary workers do not remain loyal to thecompany; they may take more time to adjust and their inexperience may come in the way ofmaintaining high quality.Employee leasing: Hiring permanent employees of another company who possess certainspecialised skills on lease basis to meet short-term requirements – although not popular inIndia – 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 anarrangement is beneficial to small firms because it avoids expense and problems of personneladministration. Cont…
  29. 29. Alternatives to recruitingOutsourcing: Any activity in which a firm lacks internal expertise and requires onunbiased opinion can be outsourced. Many businesses have started looking at outsourcingactivities relating to recruitment, training, payroll processing, surveys, benchmark studies,statutory compliance etc., more closely, because they do not have the time or expertise todeal with the situation. HR heads are no longer keeping activities like resume managementand candidate sourcing in their daily scrutiny. This function is more commonly outsourcedwhen firms are in seasonal business and have cyclical stuffing needs.
  30. 30. Evaluation of the sources ofrecruitment Time lapse data: they show the time lag between the date ofrequisition for manpower supply from a department to the actual date offilling the vacancies in that department Yield ratios: they show the number of contacts required togenerate a given number of hires at a point of time. Surveys and studies: they could be carried out to find out thesuitability of a particular source for certain positions.
  31. 31. Recruitment Policies And ProceduresA recruitment policy indicates the organisation’s code of conduct in aspecific area.Recruitment policy statementIn 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 jobadvertised 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 fairand thorough hearing Cont…
  32. 32. Recruitment Policies And ProceduresThe 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 recruitmentliterature or job advertisementsA recruitment procedure will lay down a clear path to be followed by theHR department while hiring people. Of course, the procedures have to beframed in a flexible manner so as to permit the HR department torespond to the requests made by various departments and by potentialcandidates quickly.
  33. 33. Questions to be asked while hiringpeople 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, fringebenefits, 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 torelevant 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 inadvance and asked to furnish detailed references? Have unsuitable candidates or waitlisted candidates been informed of theirposition in a polite way thanking them for their interest and attendance?
  34. 34. Recruitment: Indian ExperiencesRecruitment of trainees:expectations of Indian companiesPepsi: Pepsi is a flat organisation. There are a maximum of four reporting levels.Executives here emphasise achievement, motivation, the ability to deliver come whatmay. As the Personnel Manager of Pepsi Foods remarked “we hire people who arecapable of growing the business rather than just growing with the business”. Recruitees mustbe capable of thinking outside the box, cutting the cake of conventional barrierswhenever and wherever necessary. They must have a winner’s mindset and apassion for creating a dynamic change. They must have the ability to deal withambiguity and informality. Cont…
  35. 35. Recruitment of trainees:expectations of Indian companiesReebok: As Reebok’s customers are young, the company places emphasis onyouth. The average age at Reebok is 26 years. Employees are expected to have apassion for the fitness business and reflect the company’s aspirations. Recruiteesshould be willing to do all kinds of job operations. The willingness to get one’shands dirty is important. They must also have an ability to cope with informality, aflat organisation and be able to take decisions independently and performconsistently with their clearly defined goals.Indian Hotels: The Taj group expects the job aspirants to stay with the organisationpatiently and rise with the company. Employees must be willing to say ‘yes sir’ toanybody. Other criteria include: communication skills, the ability to work long andstressful hours, mobility, attention to personal appearance and assertiveness withoutaggression.
  36. 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